What is Startup India?
“A startup is not just about mobiles and laptops. It does not only mean a company with billions of dollars and 2,000 employees. If it is able to provide employment to even five people, it would help in taking the country forward,” – said PM Shri Modi.
It is a mission announced on August 2015 to liberate laws for new businesses and entertaining Young Indians to start up a new business. The slogan “Start-up India is Stand up India” indicates business not just through e-commerce but also for home grown business.
Following are few action points of the Startup Plan –
- Self-certification: The objective of compliance regime based on self-certification is to reduce the regulatory burden on startups. This self-certification scheme will apply to nine labour and environment laws and there will be no inspection during the first three years of launch of the venture.
- Startup India Hub: A startup India hub will be created as a single point contact for the entire startup ecosystem to enable knowledge exchange and access to funding.
- Shortening start-up process: A startup will be able to set up by just filling up a short form through an online portal and mobile App from April 2016 where a start-up can be registered within 1 day. There will also be a portal for clearances, approvals and registrations.
- Protection for patents/intellectual property rights: Patent registration is long-lengthened process. The Government intends for fast-track patent examination at costs reducing to at least 80% of the present fees. It will promote awareness and adoption of Intellectual Property Rights (IPRs) to help them protect and commercialise IPRs.
- Quality over turnover: For advancement of start-ups, the Government intends to help start-ups to promote their business by quality provided they provide rather than the turnover they earn or experience they have gained.
- Funds of funds: In order to provide funding support to startups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund.
- Capital Gains exemption: Investments made in the start-ups by incubators from sale of property of the startups shall be exempt from tax.
- Tax exemption of profits earned: Income tax exemption to startups for three years.
- Easy and fast exit for start-ups: Not all start-ups go well as there can be some unsuccessful start-ups. The Government has proposed a “Bankruptcy 2015 Bill” to allow star-ups to exit within 90 days.
- Innovation focused programmes for students: There will be innovation core programs for students in 5 lakh schools.
- Promote entrepreneurship in biotechnology: 5 new bio-clusters, 50 new bio-incubators, 150 technology transfer offices and 20 bio-connect offices will be established.
CA Ruchi Shah
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