- Compliance regime based on self certification
- The objective of compliance regime based on self certification is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.
- Startup India hub
- A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.
- Simplifying the startup process
- A startup will be to able to set up by just filling up a short form through a mobile app and online portal. A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations
- Patent protection
- The government is also working on a legal support for fast-tracking patent examination at lower costs. It will promote awareness and adoption of Intellectual Property Rights (IPRs) by startups and help them protect and commercialise IPRs.
- Funds of funds with a corpus of Rs 10,000 crore
- In order to provide funding support to startups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund. The credit guarantee fund for start-ups would help flow of venture debt from the banking system to start-ups by standing guarantee against risks.
- Credit Guarantee Fund
- A National Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.
- Exemption from Capital Gains Tax
- Currently, investments by venture capital funds in startups are exempt from this law. Now, the same is being extended to investments made by incubators in startups.
- Tax exemption for startups
- Income tax exemption to startups announced for three years
- Tax exemption on investments above Fair Market Value
- Startup fests
- Innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators
- Launch of Atal Innovation Mission
- Atal Innovation Mission started to give an impetus to innovation and encourage the talent among the people
- Setting up of 35 new incubators in institutions
- PPP model being considered for 35 new incubators, 31 innovation centres at national institutes
- Setting up of 7 new research parks
- Government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each.
- Promote entrepreneurship in biotechnology
- Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.
- Innovation focused programmes for students
- There will be innovation core programs for students in 5 lakh schools.
- Panel of facilitators to provide legal support and assist in filing of patent application
- 80 per cent rebate on filing patent applications by startups
- Relaxed norms of public procurement for startups
- Faster exits for startups
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