Startup India: Scheme Detail, Registration, Benefits and Features

Startup India was a campaign that was first addressed by PM Narendra Modi on 15 August 2015 at Red Fort, New Delhi. This campaign was launched under the Government of India as an initiative to develop over 75 Startup Support Hubs in the country. This topic, 'Startup India' comes under Government Schemes of Indian GST (GS-II), which is the administration course of the IAS exam. For more details, one can visit the official website - https: /startupindia.gov.in/

Key Features of Startup India Scheme -

What is Startup India Scheme?

Startup India scheme is an important government scheme which was launched on 16 January 2016 with the objective of promoting and supporting start-ups in India by providing bank finance. It was inaugurated by former Finance Minister Arun Jaitley. Organized by the Department for Promotion of Industry and Internal Trade, the major objective of Startup India is to leave some of the restrictive states.

1. license raj
2. land permissions
3. Foreign investment proposal
4. Environmental clearance

Startup India scheme is mainly based on three pillars which are mentioned below:

• To provide funding support and incentives to various start-ups in the country.
• Providing industry-academy partnerships and incubation.
• Simplification and handholding.

Registration for Startup India -

A person must follow the below mentioned steps which are important for successful registration of their business under Startup India scheme:

1. A person must first incorporate his business either as a Private Limited Company or as a Limited Liability Partnership or as a Partnership Firm with obtaining Certificates of Incorporation, PAN and other necessary compliances.
2. A person has to log on to the official website of Startup India where he has to fill all the necessary business details in the registration form and upload the required documents.
3. A letter of recommendation, Incorporation/Registration Certificate and a brief description of the business are some of the essential documents required for the registration purpose.
4. Since start-ups are exempted from income tax benefits, therefore, they must be recognized by the Department of Industrial Policy and Promotion (DIPP) before availing these benefits. Also, they must be certified by the Inter-Ministerial Board (IMB) to be eligible for IPR-related benefits.
5. After successful registration and verification of documents, you will be immediately provided with an accreditation number for your startup along with a certificate of accreditation.

Who is eligible to apply under Startup India Scheme?

An entity is eligible to apply when:-

• It is incorporated in India as a private limited company or partnership firm or limited liability partnership.
• It has a history of less than 10 years i.e. less than 10 years have elapsed from the date of its incorporation/registration
• Turnover, Incorporation/Registration has been less than INR 100 Crore for all the financial years

Advantages of Startup India -

After the launch of Startup India scheme, a new program named I-MADE program was launched by the government with a focus on helping Indian entrepreneurs in building 1 million mobile app start-ups. The Government of India had also launched the Pradhan Mantri Mudra Yojana, which aimed to provide financial assistance to entrepreneurs from low socioeconomic backgrounds through low interest rate loans. Some of the major benefits of Startup India are as follows:

1. To reduce the patent registration fee.
2. Reforms in the Bankruptcy Code ensuring an exit window of 90 days.
3. Providing exemption from occult inspections and capital gains tax for the first 3 years of operation.
4. To create Innovation Hub under Atal Innovation Mission.
5. Targeting 5 lakh schools with participation of 10 lakh children in innovation related programmes.
6. To develop new schemes that will provide IPR protection to startup firms.
7. To encourage entrepreneurship across the country.
8. To promote India as a worldwide start-up hub.

Government Measures to Promote Startup Culture in the Country:

• As a part of the "Make in India" initiative, the government proposes to organize a start-up festival annually to enable all stakeholders of the start-up ecosystem to come together on one platform.
• Launch of Atal Innovation Mission (AIM) - To promote entrepreneurship through Self-Employment and Talent Utilization (SETU), wherein innovators will be supported and mentored to become successful entrepreneurs. It also provides a platform where innovative ideas are generated.
• Incubators set up by PPPs - In order to ensure professional management of government-sponsored or funded incubators, the government will formulate a policy and framework for setting up of incubators across the country in a public-private partnership. The incubator will be managed and operated by the private sector.
• 35 new incubators in existing institutions. 40% assistance will be provided by the Central Government, 40% funding by the respective State Government and 20% by the private sector for setting up of new incubators.
• 35 new private sector incubators. A grant of 50% (subject to a maximum of INR 10 Crore) will be provided by the Central Government for the incubators set up by the private sector in existing institutions.

Startup India - State Ranking:

Startup India State Ranking 2019

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