Our respected Prime Minister Sh. Narendra Modi had announced on the last independence day about his ambitious initiative called Startup India. These days, it has been brought back into the limelight all over again because it is finally witnessing materialism. That is pretty impressive considering it just took the government five months to put wheels to this dream.
Based on Sh. Modi’s dynamic speech at the Vigyan Bhawan auditorium, SafetyKart shares the top points from the eventful evening that sum up the Startup India initiative brilliantly:
- Simplification of the startup process – Only filling up a short form is required in order to set up one’s own small business. This can be done via a mobile app or online portal which will be launched by April.
- Compliance regime based on self-certification – Because the formal regulations take an eternity, the startups will be enabled to get self-certified via labour and environment laws. No inspection is to be conducted for three years in terms of labour laws. And all the ‘white’ startups will be self certified in terms of environment laws.
- Secure patents – Patent protection and IP rights are worthy of great concern in the startup scene of the country, that’s what Sh. Modi himself said. Hence, the startup patent applications will be fast tracked now in order to cut the small startups some slack and save them a lot of time.
- Patent application rebates – As much as 80% rebate will be provided to startups filing for patent applications. This is basically done to cut down the cost incurred in the important formative years for the startups.
- Help from professionals while filing patent applications – There will be facilitators who will provide constant assistance during the entire process of filing patent applications for the startups. This is made possible by the government paying the fees of the facilitators while they help the budding entrepreneurs, for any number of patents filed.
- More convenient rules for startups – It will be easier for the new startups when it comes to maintaining their quality standards or technical parameters in the beginning. The government has relaxed the norms of public procurement for the startups as compared to the relatively experienced companies.
- Quicker startup exits – The government has made it a lot easier for the startups to function and exit with the provision for fast-tracking closure of businesses. This is all made possible by The Insolvency & Bankruptcy Bill 2015.
- INR 10,000cr corpus – The government has a bigger gift for innovation driven enterprises. They have set up funding support for the growth & development for such new startups where they will be given an initial corpus of INR 2,500cr and eventually a total corpus of INR 10,000cr over the following 4 years.
- Credit Guarantee Fund – Entrepreneurs need to be constantly supported through credit and monetary assistance especially for the innovators. The credit guarantee mechanism will be rolled by the National Credit Guarantee Trust Company with a corpus of INR 500cr per year for four years.
- Tax exemption for startups – The startups set up after Apr 1, 2016, will be exempted from income tax for the following three years in order to promote them.
Feature Image Source: startupind.com