Introduction of Startup India Scheme
Startup India is an initiative of the Government of India for generating wealth and employment in the country. The main goal of Startup India is the growth and invention of products and services to improve the rate of employment in India. Startup India was first introduced by Honourable Prime Minister Sri Narendra Modi during his 15 August 2015 address from Red Fort in New Delhi.
What is the plan of actions of Startup India Scheme taken by Government of India?
Simplification of work –This can streamline the work for the new participants. The Government of India had taken the below initiatives –
Provide financial support – Government offers several financial support to motivate the startups:
Eligibility Criteria for Startup India Scheme
Any company should meet the below criteria to be considered as eligible for DPIIT startup recognition:
Period of existence and operations – Should not be more than 10 years from the date of integration.
Type of company – The company to be formed should be either a private limited company or a limited liability partnership firm.
Annual turnover – Annual turnover of the company shouldn’t be more than 100 crores for any financial year since its integration.
Innovative schemes – Company should offer innovative schemes or products.
The new firm – The firm should be new or not older than 5 years
Original Entity – The entity shouldn’t be the result of splitting up, or reconstruction, of a business already in existence.
Benefits of Startup India
Financial benefits – Under Startup India Scheme the Government offers 80% rebate on the patent costs. The process of patent registration is faster as well. To obtain the patent the Government also pays the fees of the implementor.
Income Tax Benefits – Post the incorporation year Government relieves 3 years income tax of the startups. But to avail such opportunity they need to get a certificate from Inter-Ministerial Board.
Registration Benefits – Under Startup India Scheme there is an application for facilitating the registration process. A single meeting is organized to at the Start-up India hub. Also, there is a single hesitation and problem-solving window for them.
Government Tenders - Under Startup India Scheme the startups get an advantage in getting Government tenders without having any prior experience.
Networking Opportunities – Government provides an opportunity to meet with several startup stakeholders annually. The government offers this facility by conducting 2 startups fests annually (both domestic and international level).
Any Questions? Request a callback from our Tax Experts.