In order to boost entrepreneurship in India, the Startup India campaign was announced for the first time on 15th August 2015 by the Prime Minister of India, Shri Narendra Modi. However, the action plan of the Startup India Scheme was unveiled on 16th January 2016.
Notably, Startup India Scheme is one of the flagship initiatives of the Central Government of India. Under Startup India Scheme, several programs are rolled out with the following objectives –
- To support entrepreneurs;
- To build a robust startup ecosystem;
- To transform India from a country of job seekers to a country of job creators; etc.
In the present article, we will go through the eligibility criteria and action plans under the Startup India Scheme.
Eligibility criteria under the Startup India Scheme –
Eligibility criteria to be satisfied for availing benefits under Startup India Scheme are tabulated hereunder –
| Particulars | Details |
| Type of company | The Startup must be incorporated in any of the following form-
|
| Maximum cap of Annual Turnover | The Startup should not have an annual turnover of more than INR 25 Crores. |
| Formation | The Startup should not have been formed out of splitting/ reconstruction of the business. Notably, any company formed out of splitting an organization into two or more businesses will not be eligible under Startup India Scheme. |
| Type of business | The Startup should be engaged in developing some new product/ service. Additionally, the following conditions should also be satisfied –
|
| Necessary approval and documents | The Startup needs to have the following approval and documents –
1. Incubator established in any post-graduation college; 2. Incubator recognized by Government of India; 3. Incubator funded by the Government with regard to a scheme to promote innovation.
1. At least 20% equity funding from an angel fund or an incubation fund or a private equity fund or an accelerator/ angel network; 2. Funding from Central Government/ State Government as part of any scheme of promote innovation.
|
Action plan under the Startup India Scheme –
The briefing of the action plan under the Startup India Scheme is as under –
1. Simplification and Handholding –
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- Enabling easier compliance;
- Ensuring an easy exit process for startups which are failed;
- Providing adequate legal support;
- To provide fast tracking of the patent applications;
- To develop the website so as to reduce the irregularity of information; etc.
2. Funding and incentives –
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- To provide funding support via fund of funds;
- To enable credit guarantee fund for startups;
- To provide tax exemption on capital gains/ income tax/ investment above Fair Market Value; etc.
3. Incubation and industry- academia partnership –
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- To organize startup events mainly for showcasing innovation as well as providing a platform for collaboration;
- To launch Atal Innovation Mission with self- employment and talent utilization program;
- To harness the expertise of private sector for setting up of incubator; etc.
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