In India, startups are getting increasingly popular. The government launched Startup India under Prime Minister Narendra Modi’s guidance. The Startup India project intends to assist entrepreneurs by making it easier to launch a firm, gain access to funding, and streamline other growth elements vital for early-stage companies.
Startup India benefits are being provided to entrepreneurs launching startups to stimulate growth and improve the Indian economy. The Startup India project provides numerous benefits to startups recognized for creating their businesses in India.
What is Startup India?
Startup India, the government of India’s flagship initiative, intends to create a robust ecosystem that fosters the establishment of new firms, resulting in long-term economic growth and widespread job creation. Through this effort, the government intends to assist entrepreneurs in growing through innovation and design.
On January 16, 2016, the Prime Minister launched the initiative aimed at creating jobs rather than seeking them. Many programs have been introduced since then.
These initiatives have propelled the startup culture, with the Startup India initiative recognizing enterprises and many entrepreneurs taking advantage of the benefits of establishing a business in India.
What are the benefits offered by the Indian government to startups?
Starting a business is difficult enough, so take advantage of any assistance that comes your way. That is the goal of the Startup India initiative: to assist entrepreneurs.
There are numerous advantages to registering your firm with Startup India.
Simple procedure
The Indian government has established a mobile app and a website to facilitate company registration. Anyone interested in launching a business can fill out a short online form and attach the required papers. Online processing is available for the entire process.
Cost-cutting measures
The government also publishes a list of patent and trademark facilitators. They will offer high-quality Intellectual Property Rights Services, such as faster patent examination and lower rates. The government will cover all facilitator fees, while the startup will only be responsible for the statutory fees. They will save 80% on the cost of filing patents.
Self-Certification
A corporation is obligated to follow a variety of labor laws. Failure to comply with such requirements results in strict responsibility. Because startups are relatively new to the ecosystems, they are often overlooked.
On the other hand, startups can self-certify compliance with nine labor and environmental rules to decrease regulatory responsibilities. In such a circumstance, no inspections will be performed for three years.
Simple access to funds
Companies can access 10,000 crore rupees in venture capital financing from the government. The government also provides lenders with guarantees to encourage banks and other financial institutions to provide venture capital.
Tenders from the Government
Government initiatives are typically more significant and have greater financial incentives. However, obtaining one takes a lot of work. The fundamental reason for this is their competitive nature of them.
However, this program offers businesses incentives to get government contracts. They are also not required to have any prior expertise to be considered for such tenders.
No lengthy compliance procedures
Various regulations have been simplified to save startups time and money. Startups will be able to self-certify their adherence to nine labour and three environmental laws (through the Startup mobile app).
Tax breaks for investors
The government will exempt investors from capital gains taxes if they invest in venture funds created by the government. This will assist startups in attracting additional investors. Startups will be exempt from income tax for three years if they obtain Inter-Ministerial Board accreditation (IMB).
Select your investor
Following this plan, startups will be able to choose between VCs, giving them the freedom to select their investors.
An Incubator Configuration
The Startup India program has an incubator component. This module supports public-private partnerships. The module provides the startup with the knowledge and help that they require.
Currently, 118 incubators are fuelling the startup ecosystem across India, assisting the startup ecosystem.
Simple exit
In the event of an exit, a startup can close its doors within 90 days after filing for winding up.
Get to know other entrepreneurs.
The government has proposed holding two startup fests each year, nationally and internationally, to bring together the numerous stakeholders of a startup. This will provide numerous networking opportunities.
Advantages of Research and Innovation
Finally, the most important of all. Startup India also promotes research and innovation among those who want to be entrepreneurs. In the near future, seven new research parks will be established. These parks will ensure that students and startups have access to facilities for researching and developing their
Patent Protection
If you’ve ever tried to register a patent, you know how time-consuming the procedure can be. However, the system makes various efforts to protect valuable intellectual property. This includes an expedited review of patent applications.
The initiatives are not limited to expedited patent applications. Once the patent is filed, a rebate of 80% of the total value of the patent fee is also granted.
FAQs
Do most startups provide benefits?
Startups frequently provide various benefits to their employees to keep them satisfied and ensure work satisfaction is at its highest. Startups frequently provide free drinks and snacks on the job. Gym memberships are provided at no cost.
What are the advantages of Startup India?
Under the Startup India initiative, qualifying enterprises can be recognized as Startups by DPIIT, gaining access to a slew of tax breaks, simplified compliance, IPR fast-tracking, and other perks.
How can Startup India help me save money on taxes?
Following recognition, a startup may request tax relief under section 80 IAC of the Income Tax Act. Following approval for tax exemption, the startup can enjoy a tax holiday for three consecutive fiscal years out of the first ten years since formation.
Conclusion
Since the government assists with the Startup India initiative, startups should seize the chance and register.
Entrepreneurs can seek financial assistance from Startup Business Grants to help them survive in a competitive industry. With a low degree of compliance and many chances, Startups can develop, expand, and take action.
In India, this is a perfect moment to start your own business. The advantages of Startup India are numerous and might assist you in starting your business. With little regulation and plenty of opportunities. Get them as soon as possible. This is the moment to see your business idea grow, develop, and be put into action.
Best wishes!
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