The Indian government launched an initiative called the Startup India Scheme in 2016, to encourage the growing culture of startups in our economy. The main objective of the scheme is to promote the startups, generate employment and wealth creation. These programs are controlled by the Department for Promotion of Industry and Internal Trade (DPIIT).
A startup recognized by the Department of Promotion for Industry and Internal Trade (DPIIT) under the Ministry of Commerce is entitled to various benefits. There are various steps taken by the government to foster entrepreneurial work. This includes various initiatives and exemptions in order to encourage innovative ideas.
Various benefits and exemptions aimed at boosting startups are:
The startups shall be allowed to self-certify and comply through the Startup mobile app with 9 Labour Laws and 3 Environment Laws to avoid inspection concerning the registration of the firm, building and construction workers, employees’ provident funds, insurance cover and more.
ii) Procuring a patent for a new product or service easily
The Startup India Scheme makes procuring a patent for a new product or service much easier. Earlier, to launch a new product or service into the market, you would have to pay a hefty sum to get your product patented. Patents are absolutely essential for a startup company, as it speaks to their legitimacy. This scheme provides startups with an 80 percent concession on the patent cost. On top of this, the facilitation of the patent is completely free.
iii) Tax Exemption
In a wonderful movie, the startups registered under the Startup India scheme are exempted from tax. This exemption is provided for a period of the initial three years. Any investment which is made by incubators of higher value than the market price is exempted.
Further, investments made by angel investors are also exempted under the scheme. A tax holiday for the first three years or reaching a certain threshold limit means, that the startup can completely utilize the revenues for business development purposes only.
iv) Easier and quicker registration process
This scheme makes the process of registration easier and quicker in every way. There are Startup India hubs to help guide you through the entire process and address any queries you may have.
v) Several special privileges for startups
The startups that have been registered under this Startup India Scheme enjoy several special privileges. For example, when it comes to government tenders, the startups enlisted under this scheme get first preference over all other companies. Startup India also organizes fests twice a year to help young entrepreneurs connect with large corporations from all over the world.
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Note: This Post was last updated on July 5, 2022
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