Start Up India Scheme is a flagship initiative launched by the Government of India in 2016 to promote entrepreneurship and innovation in the country. The scheme aims to create a favorable ecosystem for startups to flourish by providing various incentives, simplifying regulations, and reducing bureaucratic hurdles. The scheme is based on three main pillars: Simplification and Handholding, Funding Support, and Industry-Academia Partnership.
Objective:
The main objective of the Startup India scheme is to promote entrepreneurship and innovation in the country and create more job opportunities. The scheme aims to create a favorable ecosystem for startups to flourish by providing various incentives, simplifying regulations, and reducing bureaucratic hurdles. The scheme also aims to foster a culture of entrepreneurship by promoting and recognizing the contributions of startups to the economy.
Benefits and Features:
- Simplified Procedures: The scheme provides simplified procedures for the registration of a startup. A startup can register itself online in a single day and obtain various benefits under the scheme.
- Tax Benefits: The scheme provides various tax benefits to startups for a period of three years from the date of incorporation. Startups are exempted from paying income tax for the first three years if their turnover is less than Rs 25 crores per annum. The scheme also provides a 100% tax deduction on profits for three out of seven years for eligible startups.
- Funding Support: The scheme provides funding support to startups through various means such as the Fund of Funds for Startups, Credit Guarantee Fund for Startups, and various other schemes. The scheme aims to provide funding support of Rs 10,000 crore to startups over a period of four years.
- Self-Certification: Startups are allowed to self-certify their compliance with various labor and environmental laws for a period of three years from the date of incorporation. This provision helps startups to focus on their core business activities without worrying about the compliance requirements.
- Startup India Hub: The scheme has set up a dedicated online platform called Startup India Hub to provide various resources and services to startups. The hub provides access to various funding agencies, incubators, and accelerators, and provides information on various schemes and initiatives under the Startup India scheme.
- Industry-Academia Partnership: The scheme encourages the collaboration between industry and academia to foster innovation and entrepreneurship. The scheme provides various grants and funding support to universities and research institutions to promote research and development in various fields.
- Intellectual Property Rights: The scheme provides various incentives and support for startups to protect their intellectual property rights. The scheme provides a 80% rebate on patent filing fees for eligible startups and also provides financial support for the facilitation of patents and trademarks.
- Simplified Exit: The scheme provides a simplified exit mechanism for startups to wind up their business. Startups can wind up their business within 90 days under the scheme.
Impact:
The Startup India scheme has had a significant impact on the Indian startup ecosystem. The scheme has provided a much-needed boost to the entrepreneurial spirit in the country and has created a favorable ecosystem for startups to flourish. The scheme has helped to increase the number of startups in the country and has also provided a significant boost to the economy.
According to the Startup India website, as of March 2022, more than 58,000 startups have been recognized under the Start Up India Scheme, and more than 5,400 startups have received funding support. The scheme has also created more than 4 lakh jobs in the country.
The scheme has also helped to promote the culture of entrepreneurship in the country. The scheme has recognized the contributions of startups to the economy and has provided various incentives and support to promote entrepreneurship and innovation
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How start-up ecosystem is working in India (indiatimes.com)
