What is Startup India?

Startup India is an initiative of the Government of India. The campaign was first announced by Indian Prime Minister, Narendra Modi during his speech on 15 August 2015.
The action plan of this initiative is focussing on three areas:

1. Simplification and Handholding.
2. Funding Support and Incentives.
3. Industry-Academia Partnership and Incubation.

An additional area relating to this initiative is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances. It was organized by The Department for promotion of industry and internal trade.A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than ₹100 crore (US$13 million). Under this initiative, the government has already launched the I-MADE program, to help Indian entrepreneurs build 10 lakh (1 million) mobile app start-ups, and the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds. Initial capital of ₹20,000 crore (equivalent to ₹240 billion or US$3.0 billion in 2020) has been allocated for this scheme. Recently Indian Prime Minister announced "India will celebrate January 16 as ‘National Start-up Day".Hon’ble PM awarded 48 startups on the eve of first National startup day. This time from Pune, Maharashtra, four startups got the award.

Eligibility for Startup India

• As per the Startup India Action plan, the followings conditions must be fulfilled in order to be eligible as Startup :
• Has not yet completed a period of ten years from the date of incorporation/registration.
• Is a private limited company or registered as a partnership firm or a limited liability partnership.
• Has an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.
• Is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
• It is not formed by splitting up or reconstructing a business already in existence.

Benefits of Startups in India

Tax Exemption Benefits
Startups that are registered under the Startup India scheme are tax-free. This exemption is only available for the first three years. Incubators are free from paying taxes on any investment that is worth more than the market price. Angel investor investments are likewise excluded from the scheme’s taxation. The company can spend all of its profits for business expansion if it receives a tax credit for the first three years or reaches a certain threshold limit.

Beneficial for Research and Innovation
Research and Innovation is the most important of all the other advantages. Startup India also encourages those who want to be entrepreneurs to conduct research and innovate. There are proposals in the works to build seven new research parks. Students and businesses will be able to use these parks to conduct research and develop their products/services.

Exploring more business options
Startup India is a programme that allows startups to interact with other startups at a certain location and time. These gatherings are held twice a year in the form of a festival. These festivals are hosted both domestically and internationally. As a result of this advantage, companies can explore more funding options as well as business ideas to ensure growth.

Benefits at the time of acquiring Government Tenders
The majority of government projects are substantial and come with significant financial incentives. It is, however, quite difficult to obtain one. The main reason for this is the competitive nature of them. Startups, on the other hand, are offered incentives to receive government tenders under this scheme. They are also not required to have any prior experience in order to be considered for these bids.

Helpful in Patent Protection
If you have ever tried to register a patent, you will know how time-consuming it can be. The system, on the other hand, makes a variety of attempts to protect important intellectual property. This includes expedited patent application review. The efforts are not limited to expedited patent applications. Once the patent is filed, an additional rebate of 80% of the entire patent price is given.

Advantages of Self Certification
Startups are more prone to failure in the early stages of their development. These organisations were frequently faced with the challenge of preserving their existence in the face of adversity, including government regulations. However, thanks to Startup India programmes, which provide businesses with a buffer against such turbulence by removing some stringent rules, they can weather the storm. Startups can now self-certify in accordance with nine labour and environmental standards.

Documents Required for startup India Registration .

1. Certificate of Incorporation / Registration Certificate and PAN
2. Email ID and Mobile number
3. Company Details (Industry, Sector, Category, Regd. Office Address etc)
4. Directors/Partners Details (Name, Photo, Gender, Mobile No. Email ID, Full Address)
5. Details of Authorised Representative (Name, Designation, Mobile No. Email ID)
6. A Brief about business and products/services and notes on innovations
7. Revenue model and Uniqueness of the Product
8. Website
9. Pitch Deck
10. Video
11. Declaration by a Startup for exemption under Section 56(2) (viib) of the Income Tax Act, 1961 on Letterhead

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