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The scheme is launched by the Hon’ble Governor of Uttarakhand in the year 2018 with a vision to foster an ecosystem for nurturing the spirit of entrepreneurship and to promote investment in the area of incubation and Start-up.

­­­Some Important Definitions:

1. Entity:

2. Start-Up:

a) An entity shall be considered as startup if it fulfills the following 4 conditions:

  • In case of biotech sector, date of incorporation should not be prior to 10 years,
  • In other cases, date of incorporation should not be prior to 7 years,

b) Annual turnover does not exceed Rs. 25 crore for any preceding financial year.

c) Entity should not be an extension of existing family business; or formed by splitting up or reconstruction of a business already in existence.

d) Entity is incorporated in Uttarakhand or employs at least 50 percent of its total qualified workforce in Uttarakhand, which shall not include contract employees.

If the entity is recognized under the Startup India initiative then it should fulfill the fourth condition.

3. Incubator:

Organizations designed to support Startup companies during the early stages to help develop a scalable business model through business support resources and services such as physical space, capital, etc. and providing networking opportunities.

Any entity funded or registered under any central or state government shall also be considered as an incubator for this policy. For instance, Atal Incubation Centre under NITI Aayog.

It must be registered entity like any of the following:

a) Society (under Societies Registration Act, 1860)

b) Section 8 company or any other company (under Companies Act, 2013)

c) LLP (under LLP Act, 2008)

d) Public Charitable Trusts (under Indian Trusts Act, 1882)

Incubator entity should facilitate at least 3 months of in person or virtual interactions between its incubatee and mentors.

4. Angel Investor:

High net worth individuals who provide early/ seed stage financing to startups in return of which they receive ownership of the startup in form of equity or convertible debt.

5. Angel Network:

Group of Angel Investors who pool their investment together, professionally managed, used to fund the startups.

It may help to overcome the limitations associated with solo investing and investing in risky environments.

6. Innovation:

Process of translating an idea or invention into a good or service creating a value for which customers shall be ready to pay.

7. University:

University established or incorporated under a Central Act or a State Act or any such institution as may be recognized by UGC.

8. Startup Council:

Body constituting of members chosen from Government or Private background, to monitor and implement this policy.

9. Nodal Agency

Reputed organization/ agency approved by Start-up Council for certifying all categories of Startups.

What is the validity period of the policy?

The policy is valid for a period of 7 years from the date of its notification or until further orders.

Major Focus Sectors in the policy:

A. Travel and Tourism

B. Food Processing and Agriculture (Horticulture included)

C. AYUSH

D. Education

E. Healthcare

F. Biotechnology

G. Pharmaceuticals

H. Any other sector approved by Startup Council from time to time.

Different Benefits/ Incentives Provided:

For Startups: An entity recognized as Startup under this policy will be eligible to avail the following benefits:

 I. Monthly Allowance:

S.No. Startup operated by Amount of Monthly allowance
1. Person of General Category Rs. 10,000/-
2. SC/ST/ women/ Physically challenged person Rs. 15,000/-
3. Category A regions of MSME Policy 2015 Rs. 15,000/-

II. Marketing Assistance: This assistance will be provided only once to each selected startup for marketing /publicity.

S.No. Startup operated by Amount of Marketing Assistance
1. Person of General Category Upto Rs. 5 lakhs
2. SC/ST/ women/ Physically challenged person Upto Rs. 7.5 lakhs
3. Category A districts of Uttarakhand MSME Policy 2015 Upto Rs. 7.5 lakhs

III. Reimbursement:

S.No. Particulars Amount of Reimbursement
1. Patent (Intellectual Property) Upto Rs. 1 lakh for Indian Patent

Upto Rs. 5 lakhs for International Patent

* 75% payable at the time of application and 25% at the time of prosecution

2. Stamp Duty Exemption from stamp duty on lease deed/ space/ purchase of land  as per category defined in MSME Policy, 2015
3. State Gods & Service Tax Whole SGST after adjustment of applicable ITC will be reimbursed by State

IV. Infrastructure Support:

Selected Startups operated by SC/ST/ women/ physically challenged people will be provided space at a discount rate of 25% at recognized Incubators.

V. Need Based Assistance:

Assistance upto Rs. 5 lakhs will be provided towards cost of Raw Material/ components and other related equipment only in case where innovation is dependent on specific raw material/ equipment and subject to approval by Startup Council.

For Incubators: An entity recognized as Incubator under this policy will be eligible to avail the following benefits:

S.No. Particulars of Benefit Amount of Benefit
1. Capital Grant 50% of the capital cost upto a maximum of Rs. 1 crore excluding the cost of building and land.

* This assistance will be provided only once.

2. Running Expense Rs. 2 lakhs per year as a part of operating and management expenses, for a period of 3 years.

Funding advantages under this policy:

1. Existing lending schemes shall be extended and enhance by banks and financial institutions for startups on convenient terms.

2. Setting up of Angel Network (Uttarakhand Angels) and social impact investor groups which will help with early stage funding needs of Startups.

3. Various services will be implemented by State Government such as exemption from inspection, exemption from taxes and self-certification as provided by Government of India to Startups.

To ensure smooth execution of this policy, the State Government will ensure the following:

1. Developing an online portal or a mobile app aggregating all information related to the policy, its benefits and the procedure to avail them.

2. A dedicated helpline to answer all queries.

3. Promotion of Uttarakhand as startup destination through participation in international and national events.

4. Establishment of task force to review the policy once a year. Report shall be placed before the startup council.

* For detailed policy and guidelines please refer https://www.startuputtarakhand.com/startup_policy

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