The Startup India has been launched by the
Government of India on January 16,2016. This
was undertaken in order to guide entrepreneurs, create lively startup ecosystem
as well as shift India closer to growing jobs in preference to looking for
them.
The objective of Startup India is to build a
robust ecosystem for promoting innovations and startups in the
country.
It would also foster sustainable economic growth and create large-scale
employment opportunities. Hence, via this
application the government supposed to empower startups to grow via innovation
and design.
So, before you understand
the procedure for registration in the Startup India Scheme lets have knowledge
about the startup and various advantages that startup can avail us under this
scheme.
What do you understand
by startup ?
The notification issued by using
way of the department for merchandising of industry and inner exchange on February
19, 2019 provided the definition of a startup. Consequently, a startup is an
entity:
This is into lifestyles for upto 10 years from the date of its incorporation or registration. given such an entity is included in India as a:
- Private Limited Company according to the Companies Act,2013 or
- Partnership Firm according to the section 59 of the Partnership Act,1932 or
- Limited Liability Partnership according to the Limited Liability Partnership Act,2008
- Has a turnover that isn't more than Rs 100 crores for the duration of
any of the monetary years since incorporation or registration
- Is operating towards innovation, improvement or improvement of products
or services or techniques. Or the entity has a scalable commercial enterprise
model having a high ability of employment technology or wealth creation
- Furthermore, an entity that is created with the aid of splitting or reconstructing
an existing business unit is not considered a startup. Also, a commercial
- l enterprise entity shall give up to exist as a startup:
- As soon as it completes 10 years from the date of incorporation or
registration and
- If its turnover for any of the preceding monetary years exceeds Rs. 100
crores
Benefits of Startup India
Registration Scheme
There are a
number of benefits of Startup India Registration Scheme provides to the startups
. But, so as to avail these blessings, an entity is required to be identified
via the DPIIT as a startup.
- Self Certification under Labor and Environmental Law
- Tax Exemption for Three Years
- Tax derogation if the investment is above fair market value
- Easy Winding Up of Company
- Startup Patent Application and IPR Protection
Read this in details Benefits of Startup India Registration Scheme
1. Self
Certification under Labor and Environmental Law
Startups are allowed to self
certify their compliance below six labor laws and 3 environment legal
guidelines. The certification is allowed for time period of 5 years after the
date of incorporation of the entity.
Moreover, this sort of benefit is given so that you can lessen the
regulatory burden for startups so we can cognizance on their core enterprise
and hold compliance costs low.
2. Tax
Exemption for Three Years
The
earnings earned by the recognized startups having granted inter ministerial
board certificates are exempted from profits tax for three consecutive years.
Such
an exemption is given to facilitate commercial enterprise boom as well as cater
to the working capital requirements all through the preliminary years.
3. Tax derogation
if the investment is above fair market value
In
case a startup:
Has inter – ministerial board certificate and
Gets attention from the problem of shares exceeding the face value of
such stocks
Then the consideration upto Rs. 10 crores received from such stocks
exceeding the fair marketplace fee of such shares is exempted from tax.
4. Easy Winding
Up of Company
Startups
also referred to as speedy tune companies may be wound up inside 90 days as
against 180 days for different corporations.
In
addition, an insolvency professional shall be appointed for liquidating the
belongings and paying lenders. This would be accomplished within six months of
filing an software to make such an exit.
5. Startup
Patent Application and IPR Protection
Startup
India affords high best intellectual property services and sources to help
startups guard and commercialize their iprs. This includes:
- Speedy
tracking of startup patent software,
- Providing
80% rebate in filing of patents compared to different agencies
- Providing
50% rebate in filing of trademarks as compared to different organizations
- Panel
of facilitators to help in submitting of ip programs and
- Government
help to undergo facilitation costs
6. Relaxation
in Public Procurement Norms
So one can meet best and technical specs all
authorities of India departments, ministries and psus had been given authority
to ease the norms almost about public procurements. Accordingly, a startup can
avail exemptions on:
- Earnest
money deposit
- Previous
turnover and
- Revel
in necessities in case of presidency tenders
- Similarly,
startups can now get indexed as sellers on Indian government’s largest
e-procurement portal that is government– market (gem)
7. SIDBI Fund
of Funds
The authorities of India has set
aside a corpus startup fund of Rs. 10,000 crore. This fund is managed via sidbi
and is supposed to offer fairness funding aid for the improvement and increase
of innovation driven organizations.
The character of this sort of corpus is fund of price range. Which means
the government contributes toward the capital of semi registered finances.
Those price range in addition invest in startups.
Conclusion
Thus, Government of India has launched the Startup India Scheme for
boosting job creation and entrepreneurship. As per the scheme, the government
is focused to provide a host of tax benefits, making compliance easy, fast
tracking IPR tracking and also offer other sets of benefits. These benefits of Startup India Registration Scheme are offered so that entrepreneurs can
focus in their core business and do not have any regulatory burden.
