The government of India has started an effort called Startup India with the goal of easing the financial load on new businesses and enabling them to maximise earnings while maintaining low compliance costs. This programme was put in place to help business owners expand their enterprises.
Launched on January 16, 2016, the Startup India initiative has pushed out a number of programmes with the goal of fostering entrepreneurship, building a strong entrepreneurial ecosystem, and transforming India into a hotspot for job creation. The Department of Industrial Policy and Promotion is responsible for monitoring these initiatives. This strategy puts equal emphasis on supporting people from small towns who wish to run their own businesses as it does on bolstering entrepreneurs from big cities.
The start-up India scheme offers a range of benefits to start-ups. However, in order to obtain these benefits, a company must be recognised as a start-up by the Department of Industrial Policy and Promotion (DPIIT).
Following are the start-up India benefits:
Rebate on patent cost: In India, the majority of start-ups are patent-based which means they provide unique goods or services. While registering with any private firm, they are required to pay a high fee, also known as a patent cost to register their companies. But under this initiative, the government provides an 80% reimbursement on patent costs.
Tax exemption: For the first three years after incorporation, eligible start-ups are exempted from paying income tax. However, to receive this benefit, the company must be recognised by DPIIT.
The start-up India registration process is easy and hassle-free. Everything takes place in one meeting. Moreover, dedicated officials are eager to assist you at every step.
Because of the high payouts and big projects, everyone wants to get their hands on government contracts. However, obtaining government tenders is not easy. Under this scheme, start-ups are given precedence in government tenders. Access to funding: There are two different types of funds that start up India has for start-up’s that register with DPIIT.
As a part of Startup India, your company can raise money from the Fund of Fund For Startups (FFS) that has a corpus of whooping Rs 10,000 crore. FFS, which is managed by SIDBI, gets in the hands of VC firms that are registered with SEBI, which in turn invest in startups. About 600 startups have collectively raised Rs 9,571 crore through this fund of funds till May 2022.