“What is Startup India?”, Advantages of Startups in India and Eligibility Criteria for Startup India Registration

Introduction

The Indian government has established a Startup India programme to encourage innovation and entrepreneurship in the country. A startup is a small new company setting that is started by one or a group of people that leads to product/service innovation. The entity must register with Startup India in order to be labelled as a startup. This article focuses on Advantages of Startups in India. Before going through the benefits of Startups in India, Let’s have a quick look at “What is Startup India? And Eligibility Criteria Startup India Registration”

What is Startup India?

The government of India’s flagship initiative, Startup India, aims to build a strong ecosystem that supports the formation of new businesses, resulting in long-term economic growth and large-scale job creation. Through this effort, the government hopes to empower entrepreneurs to grow through innovation and design.

Since the inauguration of the initiative on the 16th of January, 2016, several programmes have been implemented to support the Prime Minister’s objective of converting India into a country of job creators rather than job seekers. These programmes have accelerated the startup culture, with the Startup India initiative recognizing businesses and many entrepreneurs taking advantage of the advantages of beginning a firm in India.

Eligibility Criteria for Startup India Registration

The following conditions must be met in order to be considered a startup, according to the Startup India Action Plan:

• It can be incorporated or registered in India for a period of up to ten years from the date of incorporation.
• Is the business a Private Limited Company, a Partnership Firm, or a Limited Liability Partnership
• For any of the financial years since incorporation/registration, the yearly turnover has not exceeded Rs. 100 crore.
• Is it a scalable business model with a great potential for job creation or wealth creation, or is it working toward innovation, development, or enhancement of products, processes, or services?
• It is vital to highlight that an entity formed through the division or rebuilding of an existing business is not a “Startup.” Also, an entity will no longer be referred to as a startup if it:

1. 1. Achieving a turnover of more than Rs. 100 crore in any prior year,
   2. or completing ten years from the date of incorporation/registration.

Advantages of Startups in India

• Tax Exemption Benefits

Startups that are registered under the Startup India scheme are tax-free. This exemption is only available for the first three years. Incubators are free from paying taxes on any investment that is worth more than the market price. Angel investor investments are likewise excluded from the scheme’s taxation. The company can spend all of its profits for business expansion if it receives a tax credit for the first three years or reaches a certain threshold limit.

• Beneficial for Research and Innovation

Research and Innovation is the most important of all the other advantages. Startup India also encourages those who want to be entrepreneurs to conduct research and innovate. There are proposals in the works to build seven new research parks. Students and businesses will be able to use these parks to conduct research and develop their products/services.

• Exploring more business options

Startup India is a programme that allows startups to interact with other startups at a certain location and time. These gatherings are held twice a year in the form of a festival. These festivals are hosted both domestically and internationally. As a result of this advantage, companies can explore more funding options as well as business ideas to ensure growth.

• Advantages of Self Certification

Startups are more prone to failure in the early stages of their development. These organisations were frequently faced with the challenge of preserving their existence in the face of adversity, including government regulations. However, thanks to Startup India programmes, which provide businesses with a buffer against such turbulence by removing some stringent rules, they can weather the storm. Startups can now self-certify in accordance with nine labour and environmental standards.

For a period of three years, the respective agencies would not conduct any form of investigation. In the instance of verifiable infractions, however, the responsible authority may issue an investigative order and dispatch an official to investigate. Startups that fall into the Central Pollution Control Board’s (CPCB”white )’s category” are eligible for self-certified compliance with environmental rules.

• Benefits at the time of acquiring Government Tenders

The majority of government projects are substantial and come with significant financial incentives. It is, however, quite difficult to obtain one. The main reason for this is the competitive nature of them. Startups, on the other hand, are offered incentives to receive government tenders under this scheme. They are also not required to have any prior experience in order to be considered for these bids.

• Helpful in Patent Protection

If you have ever tried to register a patent, you will know how time-consuming it can be. The system, on the other hand, makes a variety of attempts to protect important intellectual property. This includes expedited patent application review. The efforts are not limited to expedited patent applications. Once the patent is filed, an additional rebate of 80% of the entire patent price is given.

Conclusion

In India, this is an excellent moment to start a business. The advantages of Startup India are vast, and they might help you in launching your firm. With the help of the Startup Business Grants entrepreneurs get financial support to sustain in the competitive market. Along, with a low level of compliance and a large number of opportunities help Startups to develop, expand, and go into action.