Startup India Action Plan

STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN Flagship initiative of the Government of India launched in January, Summarised for easy understanding AIM To build a strong eco-system for NURTURING INNOVATION Startups Areas of Action Plan Simplification and Handholding STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN lagship initiative of the Government of India launched in January, 2016; easy understanding To build a strong system for INNOVATION and EMPOWER STARTUPSto grow through innovation and design Drive sustainable ECONOMIC GROWTHand generate large scale EMPLOYMENT opportunities Areas of Action Plan Simplification Funding Support and Incentives Industry Academia Partnership and Incubation Compiled by Surya STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN STARTUP INDIA ACTION PLAN lagship initiative of the Government of India and generate large EMPLOYMENT opportunities Areas of Action Plan Industry- Academia Partnership and Incubation Working towards innovation, development, deployment or commercializati on of new products, processes or services driven by technology or intellectual property. STARTUP ENTITY (FOR GOVT SCHEMES) Entity Regd/Incorp as Pvt Ltd Co/LLP/Regd Partnership Firm in India /Incorporated not prior to 5 years with Annual Turnover not exceeding Rs. 25 Compiled by Surya Registered /Incorporated not prior to 5 years with Annual Turnover not exceeding Rs. 25 Crores Self Certification based Compliance Regime • 6 Labour Laws (No Inspection for Three Years) •3 Environmental Laws (A New White Category) Obtaining Financing, Feasibility, Business Structuring, Mkt Skills, Technology Commercialiation,Manage ment Evaluation Self Certification based Compliance 6 Labour Laws (No Inspection for Three Years) 3 Environmental Laws (A New White Category) Establishment of Startup Hubs As Vibrant Eco system Obtaining Financing, Feasibility, Business Structuring, Mkt Skills, Commercialiation,Manage Collaboration with Govt, Incubation Centres, Educational Inst., Private Org. Govt, Indian/Foreign VCs, Angel Networks, Banks, Incubators, legal Partners, Universities, Compiled by Surya Self Certification based Compliance 6 Labour Laws (No Inspection for Three Years) 3 Environmental Laws (A New White Category) To collaborate with Govt, Indian/Foreign VCs, Angel Networks, Banks, Incubators, legal Partners, Universities, R&D Institutes Startups Registration & status with Govt Agencies (MCA) with Simple Forms Filing Filing for Compliances , clearances, Approvals, Registrations Collaborative platform with a national network of stakeholders (including venture funds, incubators, academia, mentors etc.) Applying for various schemes being undertaken under the Startup India Action Plan Legal Support and fast tracking PATENT Formation of a panel of “facilitators” empanelled by the Controller General of Patents, Designs and Trademarks (CGPDTM), Startups Registration & status with Govt Agencies (MCA) with Simple Forms Filing Filing for Compliances , clearances, Approvals, Registrations Collaborative platform with a national network of stakeholders (including venture funds, incubators, academia, mentors etc.) Applying for various schemes being undertaken under the Startup India Action Plan Startup Mobile App Legal Support and fast tracking PATENT Examination at lower cost Formation of a “facilitators” empanelled by the Controller General of Patents, Designs and Trademarks (CGPDTM), Govt with bear the entire fee cost of facilitators for any number of patents, Designs & Trademarks (Only statutory fee shall be payable) 80% rebate in filing Compiled by Surya Startup Mobile App Legal Support and fast tracking Examination at lower cost 80% rebate in filing of patents Faster Exit • For Start ups • Relaxed norms of public procurement system •In terms of The Insolvency and Bankruptcy Bill 2015 (“IBB”) Startups with simple debt structures or those meeting such criteria as may be specified may be wound up within a period of 90 days an application for winding up on a fast track basis •An insolvency professional shall be appointed Startup, who shall be in charge of the company. Relaxed norms of procurement Government shall EXEMPT Startups (in the manufacturing sector) from the criteria of “PRIOR EXPERIENCE/ TURNOVER” without any relaxation in quality standards or technical parameters. mandatorily procure at least 20% from the Micro Enterprise (MSME). Compiled by Surya In terms of The Insolvency and Bankruptcy Bill 2015 (“IBB”) Startups with simple debt structures or those meeting such criteria as may be specified may be wound up within a period of 90 daysfrom making of an application for winding up on a fast track basis An insolvency professional shall be appointedfor the Startup, who shall be in charge of the company. Govt/PSUs have to mandatorily procure at least 20% from the Micro Small and Medium Enterprise (MSME). CAPITAL GAINS Invest into Fund of Funds recognised by SEBI CAPITAL GAIN TAX EXEMPTION No Income Tax for 3 years FUND AND GUARANTEE SUPPORT CORPUS OF RS. 10,000 CRORES FOR A PERIOD OF 4 YEARS CREDIT GUARANTEE MECHANISM THROUGH NATIONAL CREDIT GUARANTEE TRUST COMPANY (NCGTC)/ SIDBI WITH CORPUS OF RS 500 CRORES PER YEAR THIS WILL BE FUND OF FUNDS BY INVESTING INTO SEBI REGISTERED VENTURE FUNDS Fund of Funds recognised by SEBI CAPITAL GAIN TAX EXEMPTION With condition to non distribution of Dividend For Growth of Business and meet working capital requirement Compiled by Surya GUARANTEE SUPPORT CORPUS OF RS. 10,000 CRORES FOR A PERIOD OF 4 CREDIT GUARANTEE MECHANISM THROUGH GUARANTEE TRUST COMPANY (NCGTC)/ SIDBI WITH CORPUS OF RS 500 CRORES PER YEAR THIS WILL BE FUND OF FUNDS BY INVESTING INTO SEBI REGISTERED VENTURE FUNDS For Growth of Business and meet working capital requirement Launch of New Programs Organizing Startup Fests Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization Program Harnessing Private Sector Expertise for Incubator Setup Building Innovation Centres at National Institutes Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras Promoting Startups in the Biotechnology Sector Launching of Innovation Focused Programs for Students Compiled by Surya