|1. Objective||To build a strong eco-system for nurturing innovation and
Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
|2. Pillars :||(a) Simplification and Handholding.
(b) Funding Support and Incentives.
(c) Industry-Academia Partnership and Incubation
|3. Launch Date:||· 16 January 2016|
|4. Eligibility :||· An entity to be eligible under the scheme needs to fulfill following set of conditions:
(1) The company has to be 7 years old. However in case of biotechnology, a 10 years old company is also eligible under the scheme.
(2) The Company should be a Pvt limited or Limited liability company.
(3) Its annual Turnover should not Exceed 25 Crore.
(4) The entity should be involved in the development of a product, Process, Services or Intellectual Property, Adding substantial value to the customer and which can commercialized.
(5) An Inter ministerial Board will give certification to an entity seeking benefits under the Scheme.
|5. Benefits:||An entity recognized as a startup under the Scheme will get following benefits.
1. Self certification.
· The startups will be free from various formalities that a company has to follow under various laws.
· The start-ups will provide self-certification in order to fulfill regulatory norms.
· The self-certification will apply to laws including payment of gratuity, labour contract, provident fund management, water and air pollution acts.
2. Start-up India hub.
· An all-India hub will be created for start-ups, which will help the entrepreneurs to exchange knowledge and access financial aid.
3. Easy Registration.
· A mobile application will be launched to help start-up to easily register.
4. Patent protection
· A fast-track system for patent claims will be provided to start up at a lower cost.
· The system will also promote awareness about the Intellectual Property Rights (IPRs) among the start Ups.
5. Corpus Funds of Rs. 10,000 crore to support start-up.
· The government will develop a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over 4 years, to support upcoming start-up enterprises.
· The Life Insurance Corporation of India will play a major role in developing this corpus.
· A committee of private professionals selected from the start-up industry will manage the fund.
6. National Credit Guarantee Trust Company
· A National Credit Guarantee Trust Company (NCGTC) is being conceptualized with a budget of Rs 500 crore per year for the next four years to support the flow of funds to start-ups.
7. No Capital Gains Tax
· At present, investments by venture capital funds are exempt from the Capital Gains Tax.
· The same policy is being implemented on primary level investments in start-ups.
8. No Income Tax for three years
· Start-ups would not pay Income Tax for three years.
· This policy would revolutionize the pace with which start-ups would grow in the future.
9. Tax exemption for investments of higher value
· In case of an investment of higher value than the market price, it will be exempt from paying tax.
10. Building entrepreneurs
· Innovation-related study programmes for students in over 5 lakh schools.
· Besides, there will also be an annual incubator grand challenge to develop world class incubators.
11. Atal Innovation Mission
· The Atal Innovation Mission will be launched to boost innovation and encourage talented youths.
12. Setting up incubators
· A private-public partnership model is being considered for 35 new incubators and 31 innovation centres at national institutes.
13. Research parks
· The government plans to set up seven new research parks, including six in the Indian Institute of Technology campuses and one in the Indian Institute of Science campus, with an investment of Rs 100 crore each.
14. Entrepreneurship in biotechnology
· The government will further establish :
1. Five new biotech clusters,
2. 50 new bio incubators,
3. 150 technology transfer offices and
4. 20 bio-connect offices in the country.
15. Legal support
· A panel of facilitators will provide legal support and assistance in submitting patent applications and other official documents to be submitted by start Ups.
· A rebate amount of 80 percent of the total value will be provided to the entrepreneurs on filing patent applications.
17. Easy rules
· Norms of public procurement and rules of trading have been simplified for the start-ups.
18. Faster exit
· If a start-up fails, the government will also assist the entrepreneurs to find suitable solutions for their problems. If they fail again, the government will provide an easy way out.