It is a known fact that India is now the world’s fastest growing startup ecosystem. With more than 3000 startups in 2013, a number that shot up to more than 4000 by 2015, India is well and truly becoming a major player when it comes to innovating through startups. To accelerate this growth even further the government of India launched the Startup India initiative. The action plan for Startup India, revealed by PM Narendra Modi on 17th January enlists how the government of india will aid startups in India. Here are the few key points that anyone who is looking to startup in India should know about Startup India initiative:
- Easy Registration
Registration of a new company or a startup has always been a hassle requiring filling out of multiple forms and multiple proof documentation. Through Startup India initiative, the government will be launching a website and a mobile app on 1st April, 2016 that will allow startups to register within a day. A portal for approvals and clearances will also be set up.
2. A fund of Rs 10,000 Crore
Yes, you read that right. The government is looking to set up a fund of Rs 10,000 Crore over a period of 4 years to fund startups. The people who will manage the fund is still a question mark but it is expected that the people will be handpicked professional from the industry.
3. Tax Exemption
For the first three years, a startup will have to pay no tax at all. This will not only boost the morale of startups that are entering the bracket but will also allow them to settle in and provides some more fund to utilize.
Notably, incubators that are looking to fund startups will also be exempted from capital gains tax.
4. Startup India Hub
A startup hub will be created which will be a single point of contact between the startups and the government. It will be through this hub that the startups can apply and seek funding.
5. Innovation programs in schools
To invigorate the spirit of entrepreneurship among the youth of the nation, startup fests will be organized and innovation programs will be launched in more than 5 lakh schools in the country.
6. Setting up of incubators in institutes
Though there are a number of private institutes that already have an incubator installed but through Startup India Initiative the government is looking to launch 35 incubators at national institutes using the PPP model.
7. Protection of Patents
The government is looking to setup panels to review patents expeditiously and at lower costs so as to promote awareness of IPRs (Intellectual Property Rights) in startups. This will help them to adopt, protect and commercialize the patents.
8. Boost to Biotechnology
Entrepreneurship in Biotechnology has been underscored in the Startup India Initiative. With 50 new bio incubators to be set up, people belonging to the field and looking to startup have been given a huge boost.
9. No Patent/trademark/design filing cost
Government shall bear the cost of facilitation for filing of patents, trademarks or designs. The government is also going to offer relaxed public procurement norms for start-ups.
10. Simple & Fast exit for startups
It is a known fact that more often than not startups fail. In case a startup fails, it is necessary to reallocate the capital in a way that they are utilized efficiently. To facilitate these failing startups, the government has proposed a simple and fast process for winding up of operations.
If you are looking to get all the nitty-gritty details of what all the government is looking to do through it’s Start-up India Initiative, watch PM Modi unveiling the details of Start-up India Initiative: