Startup India Recognition and its benefits
The startup India Initiative was launched on 16th January,2016. And since then it has become very popular in India. The government under the leadership of Prime Minister Narendra Modi has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers.
Table of Content
What is Startup recognition?
Under Startup India Action Plan, Startups that meet the definition as prescribed under G.S.R. Notification 127(E) are eligible to apply for recognition under the program. The Startups have to provide support documents, at the time of application. Read the definition here:-
Which companies would be eligible for Startup India Recognition?
- The company which is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India.
- The company shall be considered a startup up to 10 years from the date of its incorporation.
- Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
- The startup should be working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
Benefits of the Startup Recognition:
The startups under the Startup India initiatives enjoys many benefits:
Simple registration process:
- The government of India under the Startup India Action plans have introduced an online registration process.
- For that the Government has launched a mobile app.
- The companies can register through their mobile application by filling up the details in a simple form and upload relevant documents.
- There will also be single window clearances for approvals, registrations and filing compliances among other things.
Patent application simplified:
- Patent filing approach will be simplified.
- The Startup will enjoy a rebate of 80% of the fee in the patent application.
- The startup will bear only the statutory fees and the government will bear all facilitator fees.
- The government will also provide lists of facilitators of patents and trademarks.
- After getting the recognition, the startup may apply for the Tax Exemption.
- The startup can avail tax holiday for 3 years, post getting a certification from Inter-Ministerial Board (IMB).
- Under this scheme the Startups gets the opportunity to apply for the Government tenders.
- The startups gets the priority in getting the tenders. Moreover, they are not required to have experience.
Easy and Simple compliances:
- Startups will be permitted to self-certify compliance with nine labour laws and environmental laws.
- In the case of labour laws, no inspection will be conducted for a period of three years.
- This simplification of various compliances will save a lot of time and money.
Financial support from the government:
- The government has allotted fund of funds to infuse more capital into the startup.
- The government has set up a corpus of Rs.10,000 crores for 4 years (Rs.2500 crore each year).
- From such fund, the government invests in various startups.
- The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
- The Government has specifically proposed to conduct 2 startups fests annually to give the networking opportunities.
- Where the entrepreneur would be able to meet with various startup stakeholders at a particular place and time.
- This meetups would be conducted both at domestic as well aasa at the international level.
- Startup India scheme also provides Intellectual Property Awareness workshop and awareness.
Easy exit process:-
- In case of failed startup and otherwise also, a startup can close its business within 90 days from the date of application of winding up
The startup India movement started by the Government aims at creating jobs in India by India, by and for Indians. Looking at the benefits of startups, the campaign will definitely invoke indigenous startups. This will help to develop and grow the Indian economy and it will also boost the foreign investors to start a new business in India. Not only that, but it will help make the lives of the people easier through their affordable, easy, simple and comfortable services.
Hope this article was helpful. To know more about the support provided to Startup Pvt Ltd Company.
EbizFiling.com is a motivated and progressive firm managed by like-minded people. It helps a variety of small, medium and large businesses to cater to all compliance requirements of Indian Laws.
Get in touch for a free consultation on firstname.lastname@example.org or call 9643203209.