Know about latest benefits launched by the government for start-ups?
The primary objective of each startup is to expand and evolve at a fast rate. The utterance “Startup” goes beyond referring to a business that is just starting out, which typically refers to a technology-oriented business with high growth potential. Startup India was introduced by the Government of India on 16 January 2016. The purpose of this initiative, furthermore, was to offer economic benefits to start-ups in India and to encourage the entrepreneurial spirit amongst the young population in India. Moreover, India’s office set-up is at a different juncture precisely because the young generation is impatient and socially engaged as well as tech-savvy. Following are the Government’s start-up benefits.
In order to upsurge growth and help the Indian economy progress, many benefits are being rendered to entrepreneurs establishing startups.
- Simple process
The Government of India has launched a smartphone app and a website for quick start-up registration. Anyone interested in starting up a startup will fill out a basic form on the website and upload those materials. The whole process is absolutely online.
- Reduction in prices
The Government facilitates startups with directories of patent and trademark facilitators. They will offer high-quality Intellectual Property Rights Programs, including quick analysis of patents at lower fees. The government will pay all the expenses for the facilitator and the start-up will bear only the statutory fees. They will experience an 80% drop in patent filing costs.
- Easier access to the Funds
A 10,000 Crore Rupees Fund is established by the government to focus on providing venture capital to start-ups. The government also guarantees lenders to allow banks and other financial firms to supply venture capital.
- Tax holiday for 3 years
Start-ups would be exempted from income tax for approximately 3 years provided they receive approval from the Inter-Ministerial Board (IMB).
- Applying for tenders
Startups can apply for government tenders. They are excluded from the “prior experience/turnover” criteria related to normal firms responding to government tenders.
- Facilities for R&D
7 newly installed research parks will be established to provide start-up facilities within the R&D sector.
- Zero time-consuming compliance
Various compliances for startups have been streamlined in order to save time and resources. Startups are required to self-certify compliance (through the Startup Mobile Application) with 9 labour laws and 3 environmental laws (for a collection of white industries eligible for self-compliance).
- Tax benefits for taxpayers
People who spend their capital gains in investment funds being laid down by the government would be shielded and protected from capital gains. This would help entrepreneurs draw more investors.
- Choose the investor you like
After this plan, startups would have the option to select between the VCs, allowing them the ability option of choosing their investors.
- Easier to exit
In a situation of exit – the start-up can easily shut their business within 90 days from the date of the winding-up application.
Conclusion-
India is the third largest start-up destination in the world Startup India is an effort to create an atmosphere that encourages a spirit of entrepreneurship. The Startup India programme has many benefits. In its seventh decade of independence, India is at the forefront of a big transition, which can be encapsulated in one line: entrepreneurialism in India. From making investments from other countries to providing work opportunities for fellow Citizens, these entrepreneurs have changed the way the world looks at India. Legal way is India’s biggest online market application platform, dedicated to helping companies and entrepreneurs promote their financial compliance management.
