Startup India Standup India
It was almost six months ago when Prime Minister Narendra Modi first declared the initiative of ‘Startup India, Standup India’ in his address of Independence Day. The long wait was justified despite all the trouble for several new companies who had accumulated at the Vigyan Bhavan, New Delhi on 16th January 2016 with the expectation of tax cuts and less demanding business environment for business people in India. Prime Minister Narendra Modi arrived at about 6 pm taking after over eight hours of considerations among the new businesses, financial specialists and strategy makers. The PM declared the offerings after 7 pm, when he had gotten booming acclamation from the packed Vigyan Bhavan auditorium on his magnificent address.
He declared a scheme of self-certification with regard to nine labor & environment laws furthermore said there’ll be no visit from the inspectors during the initial three years of the endeavor. Speaking with the first gathering of the start-up entrepreneurs, PM declared a particular plan to support such ventures that are seen as key to generate employment as well as wealth creation.
Key Objectives of Startup India Standup India are:
Consistence administration based on the self certification
The goal of consistence administration in view of the self certification is to diminish the administrative weight on the new companies. The self-certification will only apply on laws such as gratuity payment, contract labor, Provident Fund of employees and Acts of water & air pollution.
Hub for Startup India
A hub will be set up with the intention to use it as a single point for getting information on trade and finance relating to “Startup India”. Anybody can visit this hub and ask any question related to startup, finance and legal complications.
Simplifying the Process of Startup
A startup can be easily started just by filling a small form through mobile application or online portal. The mobile application for this purpose will be introduced on 1st April 2016 by which new companies can be enrolled in just one day. There will likewise be a website portal for approvals, clearances and enlistments.
Protection of Patents
The legislature is likewise taking a shot at a lawful backing for optimizing patent assessment at lower expenses. It will advance mindfulness and reception of IPR (Intellectual Property Rights) by new companies and offer them some assistance with protecting and market IPRs.
Keeping in mind the end goal to give subsidizing backing to new businesses, the Central Government will set an asset with an introductory corpus of about Rs 2,500 crores and an aggregate corpus of about Rs 10,000 crores for 4 years. The asset would be supervised by the private experts of the industry while Life Insurance Corporation will be one of the co-investors of the asset. The CGF (Credit Guarantee Fund) for new businesses would assist venture debt flow from the banks to new companies ensuring protection against any danger.
Credit Guarantee Trust
A Credit Guarantee Trust will be fabricated with a budgetary allotment of about Rs 500 crores to provide financial facilities to the startups. It will be continued for 4 years so that all the startup can be benefitted properly from the scheme of “Startup India Standup India”.
Capital Gains Tax Exception
As of now, investments from venture capital funds in new companies are excluded from Capital gain Taxes. In future, the exemption will be applied to other investments, which are made by the incubators in new companies.
Exemption of Income Tax
The startups are exempted to pay income tax for 3 years, which will help them in many ways. Exemption from income tax will make them to invest more in their businesses and grow their businesses in short time.
Tax Exclusion on Investments
Several types of Tax exclusion will be enjoyed by the ventures which are above the Fair Market Value and thus, providing the startups to grow their businesses in a proper way. Tax exclusion will also make the startups to concentrate more in their ventures.
In about five lakh schools, programs on innovation will be held for understudies and a yearly incubator grand contest will be held to make top-notch incubators. These kinds of programs will help the students to think to launch businesses of their choices.
Atal Innovation Mission Launch
There is s a plan to launch Atal Innovation Mission with the intention to support the innovative ability among the general population. AIM will help the common people to bring their innovations in the market and open new companies in manufacturing, technology, etc.
Discount on Filling Patent Applications
Eighty percent fee deduction will be given on the patent applications of new companies. This step will help people to patent their innovations without thinking how much he/she has to spend in order to get patents for their new innovations, which will also help them to enter into the international market.
Relaxed Norms for New Companies
Incentives on tax to support start-up environment, such as rationalizing rules of service tax are likewise liable to be reported in Budget i.e. on February 29, 2016. Budget will declare a well disposed tax system supporting setting of new companies in the nation.
Fast Exits for New Companies
Exiting from a venture will be less difficult and speedier for the individuals who would prefer not to proceed — it was one of the greatest requests of the new businesses. The clause of exit will be incorporated into the Bankruptcy & Insolvency Bill 2015, which will make exit conceivable within ninety days.