PM Narendra Modi on Saturday unveiled the ambitious ‘Startup India’ initiative to boost startup businesses and digital entrepreneurship in India. A few significant features of the plan are as follows:
Tax Exemption for Startups: Profit of startups set up after 1st April, 2016 will be exempted from income tax for a period of three years. Investment of one’s own wealth will also be exempted from Capital Gains tax.
Fund for Startups: The Government will set up a fund with a corpus of Rs. 2500 crore to support growth of startups. The fund will have a total corpus of Rs 10,000 crore over four years.
Self-certification based compliance: Startups will be allowed to self-certify compliance with labour and environmental laws. There will be no inspection during the first three years of launch of a venture.
Startup India Hub: A single point of contact for interactions with the government.
Mobile App: A mobile app will be launched on 1st April to simplify the process of registration. It will contain a small application form which can be filled up for registering a startup in one day.
Faster Patents: Filing patents and intellectual property claims takes months. This process will be simplified through a fast-track mechanism for startups. Patent fee will be reduced by 80% and cost of legal facilitators for startups will be borne by the government.
Easier Exits: The government is trying to make faster exits for startups in case of failure. A bill will be introduced in the Parliament to facilitate exits in 90 days.
Relaxed Norms for Public Procurement: Startups will be exempted from the criteria of prior experience in order to help them compete with experienced companies in public procurement. Quality, however, will not be compromised.
Credit Guarantee: A credit guarantee scheme of Rs. 500 crore per year will be launched to patronise entrepreneurship for the next four years.
Atal Innovation Mission: The mission aims at promoting research and development. It includes 500 tinkering labs, 35 public-private sector incubators, 31 innovation centres at national institutes, 7 new research parks, 5 new bio-clusters.
Women Participation: The government will try to increase participation of women in startups.
Innovation Programmes: Core innovation programmes will be organized in 5 lakh schools to encourage innovation. Startup festivals will be organized to increase visibility.