PROFESIONAL UPDATES JANUARY 19, 2016
STARTUP INDIA: Hon’ble PM Modi launches Startup India Program on Sat, 16 JAN 2016 to boost innovation based business with many incentives and ease of doing business.
- Income Tax exemption for First 3 years.
- Fund of ₹ 10,000 Crore (with ₹ 2,500 crore each year) to be invested in Startups in next 4 years and a Credit Guarantee Fund for ₹ 500 crore each year for next 5 years.
- Capital Gain exemption if Startups invest capital by selling their personal assets.
- 80% Rebate in registering Patent.
- Easy Exits in 90 days.
- Self-certification compliances.
- No kind of Inspection for first 3 years.
- Incubation program to be started in 5 Lac Schools and setting up of 35 new Incubation Centres.
- No Govt intervention in Startups.
- A scheme for Women Entrepreneur to be announced soon.
- A group of lawyers to be setup who will help resolving Patent related problems for free.
- 7 New Research Parks to be started with a fund of ₹ 100 crore each.
- Organising Startup Fest all over India and abroad regularly.
- Mobile App based registration for Startups from April 1, 2016.
- Atal Innovation Mission (AIM) for encouraging Innovation among Startups.
The following are the Conditions for taking benefits of Startup Scheme:
1)It must be an entity registered/incorporated as
- Private Limited Company under the Companies Act, 2013; or
- Registered Partnership firm under the Indian Partnership Act, 1932; or
- Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
2) Five years must not had elapsed from the date of incorporation/registration.
3) Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crores.
4)Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
5)The Startup must aim to develop and commercialise:
- A new product or service or process;
- A significantly improved existing product or service or process, that will create or add value for customers or workflow.
6)The Startup must not merely be engaged in:
- Developing products or services or processes which do not have potential for commercialization; or
- Undifferentiated products or services or processes; or
- products or services or processes with no or limited incremental value for customers or workflow
7)The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
8) The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business and
- Be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
- Be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
- Be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or
- Be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
- Be funded by GoI as part of any specified scheme to promote innovation; or
- Have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.
* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.
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