Startup india: boost to innovators

CA Mukul Gupta (CA in Practice) (31 Points)

22 July 2016  

Startup  India : A new path designed by Indian Government to promote the new ideas, innovations, skills and much more which came in  mind of every resident of India by providing  financial aid,  tax exemptions , single window for registration procedures and much more.

The below article will assist in understanding the scheme that is called ‘’Startup India plan”

  • Perquisite require  to register for a startup plan:

The golden scheme opportunity is available to only following entities:-

  1. Private Limited Company or
  2. Registered Partnership Firm or
  3. Limited Liability Partnership

 

Provided that all above entities are working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology intellectual property and moreover entities are considered for startup

  1.  Upto 5 years from the date of its incorporation/ registration, and
  2.  If its turnover for any of the financial years has not exceeded INR 25 crore.

Ensure that the entity should not have been formed by splitting up or reconstruction of a business already in existence.  

For instance , A proprietorship or a public limited company are not eligible as startup but a one person company, being a private limited company is entitled to be recognized as a 'STARTUP'.

Also, an existing entity can also register under a Startup India via portal or mobile app.

  • Procedure for registration under startup plan:

Step 1. Formation of eligible entity (above described).

Step 2. Register under Startup India via portal or mobile app after uploading following documents:-

a) (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator established in a post-graduate college in India;

b) by any Incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation;

c) (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India;

d) of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit;

e) by Government of India or any State Government as part of any specified scheme to promote innovation;

f) filed and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted.

The list of incubators recognized for the purpose of (a), (b) and (c) are published on the Startup India portal for reference.

  • List of some CORE BENEFITS of startup plan:
  1. E- Registration will be done.
  2. A self-certification system will be launched.
  3. 80 percent reduction in the application fee of start up patent.
  4. Relaxation in Income Tax for first three year.
  5. A dedicated web portal and mobile app.
  6. No inspection during the first 3 years.
  7. Inclusion of Credit Guarantee Fund.
  8. Special Arrangement for Female applicants.
  9. Easy exit policy.
  10. And MUCH MORE with maximum support of government.