To encourage entrepreneurship in India, the Central Government launched the Start-up India scheme on January 16, 2016, while keeping the startup India scheme eligibility convenient for newcomers. It intends to provide straightforward financing choices for local startups since these businesses may need help accessing official lenders.
The program offers finance to SC, ST, and female entrepreneurs ranging from Rs. 10 lacks to Rs. 1 crore. But given the stringent requirements, many people may only be eligible for the program. In such circumstances, the Bajaj Finserv Loan Against Property is an additional practical choice.
Borrowers can obtain money using this instrument up to Rs. 5 Crore* to pay for all company expenses. The loan provides several advantages, such as a variable tenor of up to 18 years, low documentation requirements, specific requirements, and prompt disbursal within 72 hours* of approval. You must fulfill the requirements for this offering, provide the required documentation, and apply online.
What is startup India scheme eligibility?
Your business must meet a few requirements to be recognized under this initiative because startups receive exclusive benefits once they become a part of Startup India. As per the official Startup India website, there are some prerequisites for a startup to be accepted into the Startup India initiative.
Aspiring business owners must meet the requirements outlined to be eligible for funding through the Start-up India scheme. The eligibility requirements for the Start-up India program are described in detail here.
- Vintage: A new business venture of more than five years old is eligible to apply for this program. This government startup program is open to all companies registered or incorporated after February 15, 2011.
- Age: Applicants for this program must be at least 18 years old as well as the applicant must be under the age of 65 years.
- Company type: A company must be a partnership or a private limited company to be eligible to apply under this scheme. A startup must be established as a Private Limited Company (PLC) under the Indian Companies Act, 2013, a Limited Liability Partnership (LLP) under the Indian Limited Liability Partnership Act, 2008, or a partnership business under the Indian Partnership Act, 1932, to qualify for this scheme.
- Yearly turnover: A company’s yearly turnover can be at most Rs. 25 crores to qualify for this scheme.
- It can’t be a business that has been rebuilt: Startups applying for this program shouldn’t be the consequence of a business split or restructuring. Any company created due to the division of another business into two or more separate enterprises is ineligible to qualify for this program.
- Participating in a novel good or service: Advantages under the Start-up India policy are available to companies developing new goods or services. The requirements they must meet are as follows:
- Startups with concerns must seek to create, implement, or market any good or service supported by cutting-edge technology or intellectual property.
- Startups must seek to enhance an already-existing product or develop a new one that can increase customer value or streamline processes.
- Startups must only create and market original products with little potential to add value for customers or speed up the process.
- Registrations and approvals: To be eligible for a startup India loan, startups must have the respective approvals and documents.
- The Department of Industrial Policy and Promotion’s Inter-Ministerial board must approve startups before they proceed (DIPP).
- An incubator’s endorsement from a post-graduate institution of higher learning.
- Recommendation letter from an incubator approved by the central government.
- A patent that has been submitted and published in the Indian Patent Office’s journals in a particular product or service category.
- For startups offering funding and equity services, registration with the Securities and Exchange Board of India (SEBI) is needed. A letter of at least 20% equity funding from a Securities Exchange Board of India-registered Incubation Fund, Angel Fund, Private Equity Fund, Accelerator, or Angel Network. Such a fund cannot be included on the future negative list of funds that DIPP may issue.
- A letter of support for any scheme to encourage innovation from the state or federal governments.
- Partnership percentage: For new partnerships, a woman or someone from a Scheduled Caste (SC) or Scheduled Tribe (ST) category must own 51% of the shares. They shouldn’t have missed any payments on their credit cards.
FAQs
What is the interest rate for the Startup India scheme?
The stand-up India scheme’s interest rate will be the lowest one the bank offers for that particular category. However, the interest rate cannot be higher than the MCLR 3% Tenor premium.
How much money does Startup India give?
The incubator shall distribute Seed Funds to a qualifying startup: For the validation of Proof of Concept, prototype development, or product trials, grants of up to Rs. 20 Lakhs may be granted.
Who is eligible for the Startup India scheme?
As mentioned above, a few criteria exist to be eligible for the startup India scheme. The startup has to be recent and innovative while following the other guidelines laid by the startup India scheme on their website.
What kind of businesses are not eligible for the Startup India scheme?
The businesses that come under proprietorship or public limited companies are not eligible applicants.
Startup India registration fees?
The registration price for Startup India is fixed at Rs. 7,499 (professional fees included).
Which registration is best for startup in India?
Partnership firm registration is the best option for a small business conducted by two or more people. The setup and reporting requirements for LLPs and private limited registered businesses are significantly more complicated. They are appropriate for medium and large-scale businesses.
Conclusion
The government of India is very enthusiastic about the jobs and foreign investment these businesses offer, making now the ideal time to launch a business here. It is the best time to promote and take your startup to the next level in India.
Startups should use the government’s assistance through the Startup India initiative and register themselves. Check the eligibility criteria listed above and more detailed info on the whole process from the startup India government website to easily follow the process and get recognized under startup India as soon as possible to avail of the benefits that come with that.