Startup India a massive movement to boost digital entrepreneurship in India launched by PM Narendra Modi which will generate large number of employment in the country, it will encourage young entrepreneurs for hassle-free startup, the government is proving itself to be a facilitator of entrepreneurship. It will help the young entrepreneurs to turn their ideas to action, the government is providing great sort of legal support for its functioning some of them being:
1. Income tax Exemption for 3 years: The startups coming under startup India movement shall not be charged any Income Tax for the first 3 years.
2. Rs. 10,000 crore corpus fund to support startups: An initial fund with the name Fund of Fund (FoF) with a corpus of ₹2,500 crore shall be made which shall be extended to ₹10,000 crore later on.
3.80% Reduction in patent registration fee which shall help in cost reduction in their initial years.
4. Capital Gain Taxes to be exempted for such startups if the capital gains are invested in such Fund of Fund.
5. Faster exit for startups: In order to make it easier for startups who aren’t able to perform, provisions for faster exit is being made, startups with simple debt structure shall be allowed exit as early as 90 days.
6. Self-certification of labor and environmental laws: In order to reduce regulatory burden startups are allowed to self-certify all such labor and environmental laws compliance.
7. No government inspection of such startups regarding such compliance for first 3 years.
8. Innovation focused program for students targeted towards school kids with an outreach to have 10 lakh innovation from 5 lakh schools.
9. Mobile application for interaction: Government is all set to launch a mobile application for startups which will serve as a platform for interaction between startups, government and regulatory institution.
10. Protection of intellectual property rights: New schemes are being framed to provide protection to intellectual property rights for such startups, applications for such protection shall be fast examined and disposed.
Finance Minister Arun Jaitley provided assurance on more entrepreneur-friendly measures in the coming union Budget.
World Bank excited to work with government on startup programme, says Onno Ruhl, World Bank Country Director
Google will be offering $15,000 of equity funding for early stage startups at a session called ‘Launchpad Accelerator’ where startups can make live presentations about their business ideas.
The government is also seeking to define a new category of business — ‘Innovative Start-ups’ — to distinguish them from micro, small, medium and large enterprises that are built on conventional business models. There would be a special support structure for such innovative start-ups, including funding from the government.
Prime Minister Narendra Modi on Saturday will release the blueprint of ‘Startup India’ programme which may include a Startups and Entrepreneurship Law to make it easier for setting up new ventures and closing unviable ones, besides clearing regulatory issues that hamper access to finance.
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