Start up India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of start-up businesses, to drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower start ups to grow through innovation and design. Several programs have been under taken since the launch of the initiative on 16th of January, 2016 by Hon’ble Prime Minister, to transform India into the country of job Creators.
For availing various benefits under the start up India Scheme, an entity would be required to be recognized by DPIIT as a Start up.
BENEFITS TO RECOGNIZED START- UPS UNDER ‘ START-UP INDIA SCHEME’
- Compliance Regime based on Self-Certification
- Rolling out of Mobile App and Portal
- Start up India Hub
- Legal Support and Fast-tracking Patent Examination at lower costs
- Relaxed Norms of Public Procurement for Startups
- Faster Exit for Start-ups
- Providing Funding Support Through Funds of funds (FFS) with a corpus of Rs. 10,000 Crore
- Tax Exemption on Capital Gains
- Tax Exemption to Startups for 3 yrs
- Tax Exemption on Investments above Fair Market Value (i.e. exemption from Angel Tax)
The Government of India has announced ‘Startup India’ initiative for creating a conducive environment for startups in India. The various Ministers of the Government of India have initiated a number of activities for the purpose. To bring uniformity in the identified enterprises for the purpose of these Government Schemes and initiatives for start ups, it was considered necessary to define the term”start-up.”