What is Start-up India Scheme?

Start-up India Scheme

The Start-up  India Scheme is a government initiative to help people who want to start their own businesses. The Government of India offers benefits under the Start-up  India Scheme to anyone who has an idea and wants to put it into action. Prime Minister Narendra Modi launched the Start-up  India Scheme on August 16, 2016.

The main goal of introducing the scheme was to accelerate sustainable development and idea implementation through innovation. The creation of new job opportunities is another goal of the Start-up  India Scheme's implementation. The Department for Promotion of Industry and Internal Trade took the initiative (DPI&IT). The Start-up  India Scheme's success will eventually make India economically strong and one of the world's most powerful countries.

What is Start-up India Scheme?

Any legal entity with its headquarters (incorporated) in India will be referred to as a Start-up  for the following reasons:

• The entity should be formed as a Private Limited Company under the Companies Act of 2013, as a Partnership Firm under Section 59 of the Partnership Act of 1932, or as a Limited Liability Partnership under the Limited Liability Partnership Act of 2008.
• An entity is considered a Start-up  for the first ten years after its incorporation.
• Its primary objective is to innovate, develop, and improve existing products, services, and processes, or if it is a scalable business model with the potential to generate employment or wealth creation.
• If the Start-up 's revenue exceeds 100 crore, it will no longer be considered a Start-up .

A ‘Start-up ' is not an institution established by the division or reconstruction of an existing business.

 

Eligibility for Registration under Start-up  India Scheme:

• To begin, the business must be incorporated as a private limited company or a limited liability partnership.

• Second, the companies must have received approval from the Department of Industrial Policy and Promotion.

• it must have a letter of recommendation from an incubation.

• The company must offer novel schemes or products.

• It should be a new company or one that is no more than five years old.
• The company's total revenue should not exceed Rs. 25 crores.

• Finally, it should not be the consequence of the dissolution or restructuring of an existing business.

 

Challenges faced by Start-up  India

• People usually believe that starting a business is simply conceiving of a new idea or plan. In reality, however, carrying out such a plan is more important than simply contemplating it.

• The government's view or perspective on the Start-up  India plan is quite short-term in nature. It does not consider the Start-up s' long-term trajectory.
• A qualified personnel is required for the success of every new firm. However, due to a shortage of funding in the early stages, competent staff is not possible for Start-up s.

• When compared to other businesses, Start-up s have a higher risk of failing. It's because they have a tendency to move quickly.

Start-up India Hub under Start-up India Scheme

The Start-up  ecosystem brings together all of the Start-up s that are registered with the Indian government. The government facilitates the creation of a network that connects all of the Start-up s.

Research & Development is one of the most crucial aspects of a firm, and it requires a significant amount of money. In terms of start-up incubation, the Indian government has stated that it will offer all essential resources. It facilitates in the establishment of a start-up hub, a collaborative platform. It assists entrepreneurs in leveraging the private sector for incubation. In addition, the government has demonstrated its commitment to R&D by establishing new and successful innovation centres throughout the country.

Required Documents for Start-up India Scheme:

• Proof of conception (website, brochure, or video)
• Patent and Trademark information (optional)
• PAN Number • Improvement and Innovation
• Registration or Incorporation Certificate
• Details of the directors

The application process for the Start-up India Scheme:

According to the government of India, start-ups must first register as a legal entity and as a Private Limited and Limited Liability Partnership of Partnership Firm before proceeding with the application process. The application can be submitted through the scheme's mobile application or through DIPP's portal (Department of Policy and Promotion).

Advantages of the Star-up India Scheme:

• Intellectual Property Rights (IPR):

The Start-up  India Scheme offers to provide highest level Intellectual Property resources and services.  The government intends to do so in order to encourage companies to take advantage of intellectual property rights and market them.

• Relaxation of Public Procurement Policies:

If the Start-up s satisfy the required quality standards, the government relaxes the Public Procurement policies. All Government of India organisations, including Ministries, Public Departments, and Public Sector Undertakings (PSUs), have been ordered to loosen procurement rules.

• Self-certification under the laws of labour and the environment:

Laws and taxes regulations may take a long time to implement and function as a barrier to the Start-up 's growth and development. To some extent, the government has lifted restrictions on labour and environmental laws.

• Faster Exits:

The Indian government promises to allow businesses to file an application for business winding up within 90 days, compared to 180 days for other businesses.

• Funds:

The most fascinating aspect of running or establishing a Start-up  is searching for and collecting funds. Every other business needs funds to succeed. The government has schemes that provide entrepreneurs a lot of money.

• Tax Exemption:

The Inter-Ministerial Board also assists innovation-driven Start-up s by providing tax benefits. By submitting a duly signed declaration in Form 2 to DPIIT, a DPIIT certified Start-up  is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act.

• Benefits of Intellectual Property Rights:

The government provides services such as quick track Start-up  India scheme applications, a panel to educate business owners mostly on benefits and application process, and so on. The government has decided to cover the costs of facilitation and also gives an 80 percent rebate on patent filings and a 50 percent rebate on trademark applications.

• Relaxation of Public Procurement:

The Start-up  India Scheme acts as an accelerator for Start-up s to produce goods and services. The following advantages are available to registered Start-up s:

• It is not necessary to have prior experience or turnover.
• Money was initially deposited.
• Information about government tenders.

• Self-certification in accordance with labour and environmental laws:

Labor laws: The government has given Start-up s the option of self-certifying their compliance with six labour laws. The Start-up  was required to use the "Shram Suvidha Portal."

Environmental legislation: Environmental laws include those enacted in order to preserve the sanctity of nature and ensure that businesses do not take the environment for granted.However, due to the small turnover of a Start-up , the government has also exempted the levy of three environmental laws. Once registered, the businesses will only be eligible for the Central Pollution Control Board's (CPCB'white )'s category,' which means they won't need environmental approval for the next three years.

Funds: The government has schemes that provide entrepreneurs a good amount of money. The registered Start-up s are from the 10,000 crore rupee Fund of Funds. SIDBI will take care of everything. The government invests in SEBI-registered Venture Funds, which in turn invest in Start-up s. However, due to the small turnover of a Start-up , the government has also exempted the levy of three environmental laws. Once registered, the businesses will only be eligible for the Central Pollution Control Board's (CPCB'white )'s category,' which means they won't need environmental approval for the next three years.

Tax Exemption: Profits from Start-up s certified by the Inter-Ministerial Board are exempt from paying taxes for three years out of seven years of incorporation. These benefits are provided to ensure the growth and development of Start-up s. By submitting a duly signed declaration in Form 2 to DPIIT, a DPIIT recognised Start-up is eligible for exemption from the provisions of Section 56(2)(viib) of the Income Tax Act.

Other Advantages: While collaborating with large corporations such as Amazon and Microsoft, the government provides free Pro Bono services. In addition, the government offers programmes that will undoubtedly bring small Start-up s closer together and work together to create a foundation for innovation.

Other Advantages of the Start-up India Scheme

The government provides free Pro Bono services while collaborating with large corporations such as Amazon and Microsoft. In addition, the government offers programmes that will undoubtedly bring small start-ups closer together and work together to create a foundation for innovation.

Frequently Asked Question on Start-up India Scheme

Is it necessary for me to be physically present during this process?

No, the process of forming a new company is entirely online. You would not need to be physically present because all documents are filed electronically. You must send us scanned copies of all required documents and forms.

 

How long does it take to set up a business in India?

It will take no more than 7-12 days if all of your documents are in order. However, this is dependent on the registrar's workload.

 

What exactly do the terms "innovation" and "improvement" imply?

The Start-up  must demonstrate that it is working to innovate or improve a product, process, or service, and/or that it has a sustainable business model with a high potential for wealth creation and employment.

 

Is it possible for a start-up to exist indefinitely?

An entity is considered a Start-up  for the first ten years after its incorporation.

 

Who can't work in a start-up?

A ‘Start-up ' is not defined as an entity created by the splitting or reconstruction of an existing firm.

 

What is the basic minimum capital required to start a business?

If the business's revenue exceeds Rs. 100 crore, it will no longer be considered a Start-up .

 

Is it possible for a Start-up 's director to be paid?

Yes, a salaried individual can become a director of a private limited company, LLP, or Start-up . It is necessary to check the employment agreement to see if such provisions are permitted. In many cases, employers are perfectly fine with the fact that their employee is a director in another company.

 

Is it necessary to be present in person to incorporate a Start-up ?

The entire procedure is completed online, and no one is required to be present at our office or any other location for the incorporation. A scanned copy of the documents must be mailed. The incorporation certificate is sent by mca to the applicant's registered email address.

 

Is it possible to register a business at one's home address?

Yes, the company can be registered at the owner's home address. A copy of the utility bill is required to be submitted.

 

Do you want to start your own business?

The application can be submitted through the scheme's mobile application or through DIPP's portal (Department of Policy and Promotion). A toll-free number and an email address are also available for consumer inquiries.

 

How long would the designation of "Start-up" be valid?

An entity ceases to be a 'Start-up ' after:

a) 5 years from the date of incorporation/registration, OR

b) its turnover for any of the financial years exceeds Rs. 25 crore.

 

Why India Expert :

• On-Time Delivery: Simply provide us with a few details about your brand, and we will process your application. You'll be able to use the symbol alongside your brand name in three working days.
• Transparent Pricing: We make dealing with the government as painless as possible by handling all of the paperwork. We'll also provide complete transparency into the process so you can set realistic expectations.
• Tech-Driven Platform: If you have any questions about the process, please contact our team of experienced business advisors. However, we will make every effort to extinguish any doubts you may have.
• India Expert will understand your business requirements and help your company in obtain maximum benefits from this scheme. For any information/queries, you can contact us. Our team of experts can provide all the assistance. For Contact:

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Last updated 2 years ago