The Indian government’s support for startups is a welcome move that can help boost the country’s economy and create more jobs.
The Startup India Scheme provides a range of benefits for startups in India. The main goal of such initiatives is to create a favorable environment for entrepreneurship and innovation,stimulate economic growth, generate employment opportunities, and foster technological advancements.
Startup initiatives typically offer a range of benefits, resources, and support mechanisms that help startups overcome challenges and thrive in their early stages.
It also aligns with the government’s broader goal of fostering a helpful environment for startups and positioning India as a global hub for innovation.
The government under the leadership of PM Narendra Modi has started and promoted Startup India.
One of the biggest challenges faced by startups in India is access to funding. To overcome such a challenge the Government of India has set up a Fund of Funds (FoF) with a corpus of INR 10,000 crore (approximately $1.3 billion) to provide equity funding to startups.
The FoF invests in SEBI-registered Alternative Investment Funds (AIFs), which in turn invest in startups.
1. Simple process- The government of India has launched a mobile app and a website for easy registration for startups.
Anyone interested in setting up a startup can fill up a simple form on the website and upload certain documents. The entire process is completely online.
2. Registration and Recognition- Eligible startups can register themselves on the Startup India portal to avail of the benefits provided by the initiative. Once registered, startups receive official recognition and a unique identification number (DPIIT number).
3. Startup India Hub – The Startup India Hub serves as a single-point contact for startups to interact with the government, get information, and seek guidance on various aspects of starting and running a startup.
4. Intellectual Property Support – Startups can avail of financial support for filing patents, trademarks, and designs. This encourages startups to protect their intellectual property and promotes innovation.
5. Easy Access to Funds – A 10,000 crore rupees fund is set up by the government to provide funds to startups as venture capital.
The government is also giving guarantees to the lenders to encourage banks and other financial institutions to provide venture capital.
6. Tax Exemptions – Eligible startups can avail of income tax exemptions for a specified period, provided they meet the criteria set by the government.
The exemption is aimed at easing the financial burden on startups during their initial years.
Startups will be exempted from income tax for 3 years provided they get a certification from the Inter-Ministerial Board (IMB).
7. No time-consuming compliances – Various compliances have been simplified for startups to save time and money.
Startups shall be allowed to self-certify compliance (through the Startup mobile app). Startups can self-certify their compliance with various labor and environmental laws and regulations through a simple online process.
This reduces the regulatory burden on startups and fosters ease of doing business.
8. Networking and Exposure – The government of India organizes events, summits, and platforms that bring startups, investors, mentors, and industry experts together, fostering networking and collaboration.
9. Start-Up India Learning Program – The Government of India offers an online learning and capacity-building program to help entrepreneurs learn essential business skills and knowledge required for startup success.
10. Easy exit in case of exit – A startup can close its business within 90 days from the date of application of winding up
CONCLUSION
Startups are being highly encouraged by the government. The benefits enjoyed by them are immense, which is why more people are setting up startups.
The government’s programs have helped create awareness about startups and entrepreneurship. The government’s support has been crucial in helping startups grow and scale up their businesses.
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You can easily get any of your government or no government documents verified. Hence, the future of startups in India is very promising. India has a large population and a growing economy. This makes it an attractive market for startups.