Start-up India Scheme is a flagship scheme of Modi govt. which intends to build a strong ecosystem to ensure growth of Start-up businesses in India. This initiative will drive sustainable economic growth and will create a large number of job opportunities for the unemployed youths. PM Narendra Modi has launched this scheme on 16 January 2016 to empower start-ups to grow through innovation and design. The primary objective of Start-up India Scheme is to enable people to become job creators rather than job seekers.
Till date, around 1.97 Start-ups have been registered under Learning and Development Module and 2.86 lakh Start-ups have been registered under Start-up India Hub. Programs under Start-up India initiative have catalysed the Start-up culture along with providing recognition to Start-ups from Department of Industrial Policy and Promotion (DIPP). As on 25 December 2018, around 14,847 Start-ups have been given recognition and 149 are already being funded.
The Start-up India Program includes discovering the latest Incubator Programs, Accelerator Programs, Workshops, Events, Competitions and Challenges. Many entrepreneurs are already availing the benefits of starting their own business in India. All the interested people who wants to open their Start-ups can make registration / registration at the official website startupindia.gov.in.
Being one of the most successful welfare schemes by Indian government, we’re here to guide you about every bit of the Start-up India scheme.
Start-up India Initiative Benefits
Through this initiative, people can avail benefits of recognition, get knowledge and build skills, access govt. schemes, connect with experts and Start-ups and can even share their opinions and experiences.
1. Start-up India Scheme – DIPP Recognition Benefits
Recognized Start-ups can avail benefits of DIPP recognition under the Start-up India Scheme:-
- Self-Certification – Start-ups will get compliance under 9 environmental & labour laws.
- Tax Exemption – There would be an Income Tax (IT) exemption for a period of 3 consecutive years. There would be exemptions on capital gains & investments above Fair Market Value.
- Easy winding up of company – DIPP recognition would be done within 90 days under insolvency and bankruptcy code 2016.
- Start-up Patent Application and IPR protection – Recognition would be fast track and there would be upto 80% rebate in filling patents.
- Easier Public Procurement Norms – There is an exemption on EMD and minimum requirements and Start-ups can get listed as a seller.
- SIDBI Fund of Funds – Funds for investment into Start-ups through Alternate Investment Funds.
2. Start-up India Learning Program, Getting Knowledge & Skill Development
There are various benefits for recognized Start-ups under the Start-up India Scheme:-
- Start-up India Course by Up Grad – This is a free online entrepreneurship program to enable Start-ups to pick up all the skills needed to start their own business.
- Design Thinking – All the interested persons who wants to open Start-ups can learn design methodologies to take up their service and products to the next level.
- Web Development and Programming – With the help of these courses, people can start building their own apps and websites.
- AWS for Beginners – Interested entrepreneurs can learn on how to use AWS to manage their cloud infrastructure.
- Economics for Business – Enabling people to understand economics concepts which would enable them to take various strategic decisions.
- Financial and Legal courses – Ensuring that Start-ups are following the right process from a legal and accounting stand point.
3. Accessing Government Schemes under Start Up India Initiative
All the new formed businesses with innovative ideas will also get assistance from the government. Entrepreneurs can access various government schemes and avail benefits. Start-ups can browse through government scheme, access bank credit facilitation facility, select basis department, access sustainable finance scheme, apply on site & can even avail the benefits of raw material assistance scheme.
4. Establishing Network Connect with Experts & Start-ups
Start-ups are free to establish networks with other Start-ups and can find synergies from a pool of over 30,000 Start-ups and entrepreneurs. Entrepreneurs can talk to investors on basic sector and domain expertise. Mentors will also provide guidance to the newly formed Start-ups to grow their innovative idea into a suitable business design. Start-ups can get mentorship from a pool of over 200+ and growing active mentors on several topics. Even some Start-ups can find industry connects through a host of industry experts and corporates on the hub.
5. Opinion Sharing & Help From Experiences – Start-up India Scheme
People can share their opinions and experiences and get the latest news about the Start-up Eco system. Start-ups can discuss and validate their ideas and get answers to their queries from the Start-up Universe. All the Start-ups can also browse through most interesting opinions, blogs and articles related to Start-up eco-system.
Start-up India Scheme – Action Plan & PDF Download
To achieve the objectives of this scheme, central government has announced the Action Plan that addresses all aspects of Start-up ecosystem and will accelerate spreading of the Start-up movement. The Action Plan is based on the following 3 pillars namely Simplification and Handholding, Funding Support and Incentives, Industry-Academia Partnership and Incubation. This initiative has a 19 point Start-up India Action Plan which are as follows:-
- Compliance Regime based on Self-Certification
- Start-up India Hub
- Rolling-out of Mobile App and Portal
- Legal Support and Fast-tracking Patent Examination at Lower Costs
- Relaxed Norms of Public Procurement for Start-ups
- Faster Exit for Start-ups
- Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 crore
- Credit Guarantee Fund for Start-ups
- Tax Exemption on Capital Gains
- Tax Exemption to Start-ups for 3 years
- Tax Exemption on Investments above Fair Market Value
- Organizing Start-up Fests for Showcasing Innovation and Providing a Collaboration Platform
- Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization (SETU) Program
- Harnessing Private Sector Expertise for Incubator Setup
- Building Innovation Centres at National Institutes
- Setting up of 7 New Research Parks Modelled on the Research Park Setup at IIT Madras
- Promoting Start-ups in the Biotechnology Sector
- Launching of Innovation Focused Programs for Students
- Annual Incubator Grand Challenge
Download Start-up India Action Plan PDF to know the action plan about the scheme. DIPP recognition of Start-up shall be upto 7 years starting from the date of incorporation. Moreover, a Start-up must not exceed the threshold of 25 crores. In case Start-up ceases to be eligible, Start-ups needs to intimate this to DIPP within a period of 21 days.