This is Ravi Verma, In This Article, I will tell you about the start-up India scheme.
What is the Startup India scheme?
The Startup India Scheme is an initiative of the government of India in 2016. The primary goal of Startup India is the promotion of startups, the technology of employment, and wealth advent. The Startup India has initiated numerous programs for building a strong startup environment and reworking India into a rustic of activity creators as opposed to activity seekers. these programs are managed by way of the branch for industrial coverage and promotion (DPIIT)
Startup India is a flagship initiative of the authorities of India, meant to build a sturdy environment that is conducive to the increase of startup agencies, drive a sustainable financial boom, and generate massive-scale employment possibilities. The authorities via this initiative target to empower Startups to develop via innovation and layout.
Who is eligible for Startup India Scheme?
1. The start-up must be registered as a Private Company, Limited Liabilities Partnership Firm, or Registered Partnership Firm
To be eligible under this scheme, a start-up must be incorporated as a Private Limited Company under Indian Companies Act, 2013, a Limited Liability Partnership (LLP) under Indian Limited Liability Partnership Act, 2008, or a partnership firm under the Indian Partnership Act, 1932.
2. The begin-up has to now not be a fabricated from restructuring
The start-up needs to not be fashioned out of splitting or reconstructing a subsisting enterprise. An enterprise fashioned out of splitting an agency into two or extra corporations, won’t be eligible underneath this scheme.
3. The Startup must not be older than 10 years
All commercial enterprise startups in India that have been integrated within the beyond 10 years from the powerful date of the coverage may be eligible beneath this scheme.
4. Annual turnover of the start-up must not be more than Rs. 100 crores
To be eligible under this scheme, the start-up’s annual turnover should not exceed Rs. 100 crores in any of the past 10 years since its incorporation.
5. The Firm must be involved in a unique product or service.
Only start-ups developing a new product or service or process are eligible under this scheme.
a. Process or service driven by technology or intellectual property.
b. That will create or add value to customers or workflow.
6. The start-up has to have received approval from DIPP that the business is modern.
To attain approval from the Inter-Ministerial Board of DIPP, a start-up have to post a utility to validate the innovative nature of commercial enterprise at the side of assisting documents.
What are the Benefits of the Start-up India Scheme?
1. Income Tax benefits
The income earned by using the diagnosed startups having been granted inter-ministerial board certificates is exempted from income tax for three consecutive years.
2. Self Certification under Labor and Environmental Laws
The startups are allowed to self certify their compliance under six exertions of legal guidelines law and three environment legal guidelines law.
3. Easy Winding Up of Company
Startups also known as rapid-tune corporations may be wound up inside 90 days as towards one hundred eighty days for other organizations.
4. Trad Mark Registration
Imparting 50% rebate in submitting trademarks compared to different groups of companies.
5. Patents application
Imparting 80% rebate in submitting Patents compared to different groups of companies.
6. Public procurement policy
By registering in this, big companies can do transactions with small companies, and the turnover of any company is not covered.
7. SIDBI Fund of funds
The character of such a corpus is a fund of funds. which means the government contributes toward the capital of the SEBI registered budget. those finances further invest in startups.