About StartUp India
According to the revised announcement that was published on 23rd May 2017, an organization will be considered as a Startup: if it is incorporated in India as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership corporation (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008); and for ten years from the date of its incorporation/ registration; in any case, on account of Startups in the biotechnology division, the period will be as long as 10 years from the date of its incorporation/ registration; and if its annual turnover for any of the financial years since incorporation/ registration has not surpassed Rs. 100 crores; and if that it is working in the direction of innovation, development or improvement of items or procedures or services, or if that it is a scalable business model with a high capability of employment generation or wealth creation. An organization created by splitting up or reconstruction of existing commerce will not be considered a ‘Startup’.
Benefits Of StartUp India
1. Financial Benefits
The majority of the startups are patent-based. It implies they produce or give exceptional products or services. So as to register their patents, they need to acquire a heavy cost which is recognized as the Patent Cost. Under this scheme, the government gives 80% reduction on the patent costs. In addition, the procedure of patent registration and related is quicker for them. Likewise, the government pays the fees of the facilitator towards obtaining the patent.
2. Income Tax Benefits
The startup has a good amount of benefits under the Income Tax Act. After getting recognition a Startup can apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting clearance for Tax exemption, the Startup could avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation. After getting recognition a Startup might apply for tax-exempt under Section 56 of the Income Tax Act (Angel Tax).
• Manufacturing business startups are exempted from the criteria of ‘prior experience’ or turnover. However, there is no relaxation in the quality standards or the technical parameters regarding public procurement.
• National Credit Guarantee Trust Company or SIDBI ensures guaranteed funds for over 4 years.
• Labor Laws inspections shall not be carried out in the first 3 years of incorporation.
• Environment law compliances are only compulsory after self-certification.
• Winding up of the corporation could be completed in just under 90 days under Insolvency and Bankruptcy Code.
3. Registration Benefits
Under the Startup India scheme, an application is there to make easy the registration. A single meeting is arranged towards the Start-up India hub. Also, there is a single doubt and problem-solving window for them.
4. Government Tenders
Under startup India scheme, the startups have the benefit of participating in public procurement job by means of tenders in getting government tenders. Also, there is relaxation in prior experience, EMD or turnover criteria.
5. Huge Networking Opportunities
Networking Opportunities implies the opportunity of meeting with a variety of startup stakeholders at a specific place and time. The government gives this opportunity through conducting 2 startups fests annually nationally and internationally level allowing various stakeholders of a startup to meet. The Startup India scheme also offers Intellectual Property awareness workshop as well as attentiveness.