All you need to know about 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. In this blog information on what is Startup recognition, eligibility for startup India recognition, and benefits of the startup recognition will be explained. 

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 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 enjoy many benefits:

Simple registration process

• The government of India under the Startup India Action plans has 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 uploading relevant documents. 
• There will also be single-window clearances for approvals, registrations, and filing compliances among other things.

Patent application simplified

• The 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.

Tax benefits

• After getting the recognition, the startup may apply for the Tax Exemption.
• The startup can avail of tax holiday for 3 years, post getting a certification from Inter-Ministerial Board (IMB).

Government Tenders

• Under this scheme, the Startups get the opportunity to apply for Government tenders.
• The startups get 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 labor laws and environmental laws. 
• In the case of labor 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 funds, the government invests in various startups.
• The government is also giving guarantees to the lenders to encourage banks and other financial institutions for providing venture capital.

Networking opportunities

• The Government has specifically proposed to conduct 2 startups fests annually to give networking opportunities.
• Where the entrepreneur would be able to meet with various startup stakeholders at a particular place and time.
• This meetup would be conducted both at the domestic as well as at international level.
• Startup India scheme also provides Intellectual Property Awareness workshops 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

Conclusion

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.