The Startup India scheme was established to promote innovation among upcoming entrepreneurs and trigger economic growth. Through this initiative, the Indian government aims to embrace new ideas, research, and innovation. Here is a guide to the benefits of Startup India registration and its key features.
Benefits of Startup India Registration
Self-Certification Startups often find it challenging to navigate government regulations in their early stages. However, the Startup India initiative allows self-certification with nine labour and environmental laws for three years. This benefit reduces the burden of government compliance on startups.
Startups under the Startup India scheme are exempted from paying taxes for three years. Additionally, incoming funds from incubators and angel investors are also exempted. This tax exemption enables startups to capitalize on the funds for business growth.
The Startup India scheme provides an opportunity for startups to connect with other stakeholders twice a year at a fest held both domestically and internationally. This networking option allows startups to explore alternative funding and business ideas to ensure growth.
The Startup India scheme allows eligible entities to have easy access to government tenders. Government projects have the potential for growth and monetary incentives, but startups often face significant competition.
Research and Innovation Benefits
The government is committed to establishing seven new research parks to support innovation and research among entrepreneurs. This benefit encourages startups to embrace new ideas and innovation.
Startup Patent Application and IPR Protection
The Startup India initiative provides resources to protect the patented ideas of startups against possible infringements. It also helps them commercialize their intellectual property rights (IPRs). Startups receive 80% rebate on patent filing and a 50% rebate on trademark filing compared to other companies. Additionally, a panel assists startups in government support and IP applications.
Hassle-Free Winding Up of the Company
Startups under the Startup India scheme can wind up their business within three months. To ensure a seamless closure, startups should hire insolvency experts for liquidating the assets.
SIDBI Fund as Corpus Fund
The Indian government has allocated Rs 10,000 Cr. for the development of startups in the country. SIDBI manages such funds and renders equity funding support for innovation-driven enterprises.
Access to the Government Marketplace
DPI Recognized Startups are permitted to use the Government e-Marketplace (GeM) to sell their offerings to government-based entities. This opens doors of opportunities for startups looking to work on trial orders with the government.
Key Features of the Startup India Campaign
- Single Window Clearance via the mobile application
- Corpus fund of Rs 10,000 crore to trigger the development of the startup.
- The patent registration fee would be 80% less than the original fee.
- Liberalized Bankruptcy Code for the seamless exit.
- Three years of relief from mystifying inspections.
- Three years of relief from the Capital Gain Tax.
- No tax on profit for 3 years.
- Non-existence of red tape.
- Self-certification compliance.
- Innovation hub for business enthusiasts under Atal Innovation Mission.
- New schemes with provisions for IPR protection to startups and new firms.
- Encourage innovation and entrepreneurship.
The Startup India scheme is a government-driven initiative that aims to boost employment and support innovation and research among entrepreneurs. Its numerous benefits, including tax exemptions and networking opportunities, support the development and growth of startups. Moreover, it encourages innovation and entrepreneurship, and it is expected to increase the employment rate significantly by creating jobs in different sectors.