In a bid to foster innovation, promote entrepreneurship, and create a conducive environment for start-ups to thrive, the Indian government launched the Start-Up India Scheme on January 16, 2016. This ambitious initiative has since played a pivotal role in transforming the Indian start-up ecosystem, offering a supportive framework for budding entrepreneurs.
Key Features:
1. Ease of Doing Business
Start-Up India aims to simplify regulatory procedures and reduce the bureaucratic hurdles faced by entrepreneurs. The initiative has streamlined various processes, making it easier for start-ups to register and operate.
2. Financial Aid
One of the highlights of the scheme is the provision of funding support through the creation of a Fund of Funds. This fund aims to provide financial assistance to start-ups by infusing capital into selected venture capital funds, thus catalyzing the growth of the entire ecosystem.
3. Tax Benefits
To encourage investment in start-ups, the government offers significant tax benefits under the Start-Up India Scheme. Eligible start-ups can avail income tax exemptions for the first three consecutive years, providing them with much-needed financial relief during the crucial initial years of operation.
4. Innovation and Research
Start-Up India places a strong emphasis on fostering innovation and research. The Atal Innovation Mission (AIM) and Self-Employment and Talent Utilization (SETU) program under the scheme are designed to promote a culture of innovation, skill development, and entrepreneurship among the youth.
5. Incubation Centers
The initiative supports the establishment of incubation centers and research parks to provide start-ups with the necessary infrastructure, mentoring, and networking opportunities. These hubs serve as breeding grounds for innovation, collaboration, and growth.
6. Protection of Intellectual Property
Recognizing the importance of intellectual property, Start-Up India offers various measures to safeguard the innovations and creations of start-ups. This includes fast-tracking patent examination at reduced costs and a 80% rebate in filing patents.
7. Startup India Hub
The Startup India Hub serves as a single-point contact for all stakeholders in the start-up ecosystem. Entrepreneurs can access a wealth of resources, information, and support through this platform.
Since its inception, the Start-Up India Scheme has made significant strides in fostering a vibrant start-up culture in the country. Thousands of start-ups have benefited from the various incentives and support mechanisms provided. The scheme has not only created a conducive environment for innovation but has also contributed to job creation and economic growth.
Start-up India Recognition and Eligibility:
The following are the eligibility criteria for Start-up recognition:
Self-certify compliance with nine labor and environmental laws, that reduce the burden and focus on their core business activities.
They are exempted from income tax for three consecutive years out of their first ten years since incorporation.
Government funding schemes like the Fund of Funds for Start-ups (FFS), provide financial support through selected venture capital firms.
They can fast-track their applications to expedite obtaining intellectual property rights, thereby protecting their innovations.
Exemptions from certain criteria in government tenders, providing an advantage in securing government contracts.
Be a part of various events, seminars, and mentoring programs, connecting entrepreneurs with industry experts, investors, and potential partners.
participate in events and exhibitions under the Start-up India initiative, gaining exposure to global markets.
