Advantage and know details about Startup India scheme

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  • 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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