Yes, I agree. Startup Stand Up India a commendable initiative by our PM Narendra Modiji. Nothing could be better than our government trying to solve a certain problem and when its especially about startups. Many of the initial phases by the government is focused on solving the foundation problem that usually startups face. The problem of infrastructure, funding, taxes (because startups don’t usually make profit till the 2nd or 3rd year). But the hardest task of it all is to bring all of us together for mutual economic growth of the country via hand holding culture and building better communities around in different sectors to make that happen. Govt is also building 5 clusters around India to give a boost to biotech sector and building startup hubs all around for supporting startups of course.
Apart from all what you have heard on the internet, its just a initial phase of the campaign and the real work begins now to actually solve many of the challenges. If you are looking forward to startup, right now would be the best environment to get started.
Prime Minister’s some of the action plan points on Startup India are:
- Self-certification based compliance.
- No inspection for the first three years.
- Includes self-certified environmental regulation.
- Startup India Hub. A single point of contact.
- A system of hand-holding.
- A mobile app to start a startup in one day.The app will have a small application form that can be easily filled for your registration.
- Patents usually take months. We are bringing a scheme to make filing patents simpler.
- We are lacking in IP (intellectual property), but we have a lot of YP (youth property). We have to bring them on a single plane.
- Trying to facilitate free patent filing. Today we are reducing patent fee by 80 per cent.
- We are planning relaxed norms of public procurement for startups.
- There are ways to close doors to the new ideas. We want to open them.
- There is no exit plan for startups. We are making faster exits for startups because failures shouldn’t stop you forever. One who runs away from water cannot learn to swim.
- We are bringing a bill in Parliament to let startups can exit 90 days.
- Rs. 10,000 crore corpus fund for startups. A credit guarantee fund for startups.
- Tax exemption on capital gains.
- When someone invests their own wealth, they will be exempted from capital gains tax. Three-year tax exemption for startups.
- We are trying to increase participation of women in startups.
- Tax exemption on investments above fair market value.
- We are starting the Atal Innovation Mission to give an impetus to innovation and encourage the talent among our people.
- Core innovation programmes in 5 lakh schools.
Conditions for taking benefits of Startup Scheme:
- It must be an entity registered/incorporated as a:
a. Private Limited Company under the Companies Act, 2013; or
b. Registered Partnership firm under the Indian Partnership Act, 1932; or
c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
- Five years must not had elapsed from the date of incorporation/registration.
- Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crores.
- Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
- The Startup must aim to develop and commercialise:
a. a new product or service or process; or
b. a significantly improved existing product or service or process, that will create or add value for customers or workflow.
- The Startup must not merely be engaged in:
a. developing products or services or processes which do not have potential for commercialization; or
b. undifferentiated products or services or processes; or
c. products or services or processes with no or limited incremental value for customers or workflow
- The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
- The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business and
a. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
b. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
c. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or
d. be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
e. be funded by GoI as part of any specified scheme to promote innovation; or
f. have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.
* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.