presented by dated 21st july 2020
TRANSCRIPT
Launched by Shri Narendra Modi
Hon’ble Prime Minister of India 16th January 2016
CONSOLIDATE THE
CURRENT
ECOSYSTEM
Bring all stakeholders to a common
platform
Value proposition for all stakeholders
GROW THE
ECOSYSTEM
Connect with global ecosystem
Stimulate others to join the ecosystem
FACILITATE
STAKEHOLDERS
Access to information and knowledge
Handholding support
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“Honorable Prime Minister Dr. Narendra Modi announced on
15th August, 2015 "Start-up India, Stand up India" to
promote Bank Financing for startups and offer incentives to
boost entrepreneurship and job creation. ”
“Startup India; Stand up India”
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An entity shall be considered as a Startup:
• If it is incorporated as a Pvt. Ltd. Company or LLP or Partnership Firm.
•Up to ten years from the date of its incorporation/registration.
•If its turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crore.
•If it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
“Never dream of
becoming
something.
If you dream,
dream of doing
something!“
SHRI NARENDRA MODI Hon’ble Prime Minister of India
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The concept of STARTUP India
Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturinginnovation and Startups in the country that will drive sustainable economic growth and generate large scaleemployment opportunities. The Government through this initiative aims to empower Startups to grow throughinnovation and design. In order to meet the objectives of the initiative, Government of India is announcing thisAction Plan that addresses all aspects of the Startup ecosystem.
This is a most effective campaign which will create more job opportunities to the Indian youths.
This scheme will directly help people in opening their own successful entrepreneurship.
It will help our country to show the talents of youths through their innovative businesses all across the world.
The Hon’ble Prime Minister, Shri Narendra Modi envisioned the aim of the initiative to transform India into a Startupnation, “a country of job creators instead of job seekers”.
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The action plan of this initiative is focusing on three areas
Simplification and
Handholding
Funding Support and Incentives
Industry-Academia
Partnership and Incubation
Startup India Action Plan , Jan 2016
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Compliance Regime based
on Self-Certification
To reduce the regulatory burden on Startups thereby
allowing them to focus on their core
business and keep
compliance cost low
Startup India Hub
To create a single point of
contract for the entire Startup ecosystem and
enable knowledge
exchange and enable to funding
Rolling-out of Mobile App and
Portal
To serve as the single platform for Startups for interacting with
Government and Regulatory Institutions for all the business
needs and information
exchange among various stakeholders
Legal Support and Fast-
tracking Patent Examination
To promote awareness and
adoption of IPRs by Startups , Government is taking various
steps that includes fast-
track examination of
patent applications
and rebate in fees.
Relaxed Norms of Public
Procurement for Startups
To provide an equal platform for startups ( in
the manufacturing
sector) vis- a-vis the
experienced entrepreneurs/companies in
public procurement
Faster Exit for Startups
To make it easier for
Startups to wind up
operations
Simplification and Handholding
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• While Government will not directly invest or fund startups, they will be doing it through Fund of Funds with a corpus of Rs. 10,000 Crore. The Fund of Funds shall be managed by a Board with private professionals drawn from industry bodies, academia, and successful Startups.
Providing Funding Support through a
Fund of Funds
• In order to overcome traditional Indian stigma associated with failure of Startup enterprises in general and to encourage experimentation among Startup entrepreneurs, Government plans to provide credit guarantee comfort with flow of Venture Debt from the formal Banking System.
Credit Guarantee Fund for Startups
• Government plans to provide Tax exemptions to persons who have capital gains during the year, if they have invested such capital gains in the Fund of Funds recognized by the Government.
Tax Exemption on Capital Gains
• In what could be termed as one of the most positive moves, exemption for Income tax shall be given on profits generated by startups for a period of first 3 years.
Tax Exemption to Startups for 3 years
• Currently, only the investments by venture capital funds in Startups are exempted from operations of provision u/s 56(2). Now, the same shall be extended to investment made by incubators and angel investors in the Startups.
Tax Exemption on Investments above Fair
Market Value
2. Funding Support and
Incentives
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Organizing Startup Festivals
• Government plans to organize one national and one international startup festival annually for Showcasing Innovation and Providing a Collaboration Platform.
Launch of Atal Innovation Mission
• Government will provide a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas. This will be done through Atal Innovation Mission (AIM).
Industry-Academia Partnershipand Incubation
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Building Innovation Centers
• To propel successful innovation through augmentation of incubation and R&D efforts.
Setting up Research Parks
• The Government shall set up 7 new Research Parks at IIT Guwahati, IIT Hyderabad, IIT Kanpur, IIT Kharagpur, IISc Bangalore, IIT Gandhinagar, and IIT Delhi with an initial investment of INR 100 crore each. The research Parks shall be modeled based on the Research Park setup at IIT Madras.
Promoting Startups in the Biotechnology
Sector
• To foster and facilitate bio-entrepreneurship, 5 new Bio-clusters, 50 new Bio-Incubators, 150 technology transfer offices and 20 Bio-Connect offices will be set up in research institutes and universities across India.
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Annual Incubator Grand Challenge
• To build World Class incubators in India, Government plans to launch an annual Incubator Grand Challenge to identify leading Incubators in India.
Innovation Focused Programs for
Students
• In order to promote research and innovation among young students, the Government shall implement various innovation programs including Innovation Core, NIDHI and Uchhattar Avishkar Yojna.
Harnessing Private Sector Expertise for
Incubator Setup
• Government intends to create a policy and framework for setting-up of incubators across the country in public private partnership. 35 new incubators in existing institutions will be setup along with funding support of 40% shall be provided by Central Government.
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Highlights of Startup India Action Plan• No tax on profits of start up units for initial 3 years.
• Rs.10,000 crore fund to support start-ups.
• 90- day window will be allowed for start-ups to close businesses if it fails under the Bankruptcy and Insolvency Bill, 2015.
• New scheme will provide IPR protection to start-ups and new firms.
• New 5 lakh school will be formed to target 10 lakh children under Innovation programme.
• Rs 10,000 crore is reserved for development and growth of innovative enterprises.
• Self-certification arrangement for start-ups across India for Initial 3 years getting rid of red tapism.
• No government inspections for Initial 3 years.
• Clearance mechanism patents will be quick and sponsored.
• Government launched a new mobile app to register start-ups and apply for online clearance on 1st April 2016.
• 500 sector specific incubators will be established across the country including 5 new bio clusters.
• New scheme will be introduced in order to protect intellectual property rights.
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In the official notification which is issued by the government in that said start ups have first of all register their business as Legal entity as Private limited company, Limited Liability Partnership or Partnership Firm, then they have to apply for the Startup India registration, called the Certificate of Recognition for Startups, by visiting the Startup India portal or a Mobile App and filling in the application form and uploading the necessary document.
There are following sections to fill for startup companies in India, viz:
Get DPIIT (Department for Promotion of Industry and Internal Trade) Recognition.
File up Section 56 Exemption application.
Once the application is complete, it will be examined and the start up India registration certificate will be provided to the entity.
1. Entity Details
2. Authorized Representative
Details
3. Director(s) / Partner(s) Details
4. Additional Information
5. Tax Benefits
6. Self-Certification
7. Additional Documents/Detai
ls
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1.Startup Patent application & IPR Protection
Fast track patent application with upto 80% rebate in filing patents.
IPR Benefits
Fast-tracking of Startup patent
applications
Panel of facilitators to
assist in filing of IP applications
Government to bear facilitation
cost
Rebate on filing of application
Startup India Benefits
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2. Relaxation in Public Procurement Norms
In order to meet quality and technical specifications all government of India departments, ministries and PSUs have been given authority to ease the norms with regards to public procurements. Startups are entitled to avail exemption on:
• Earnest money deposit
• Prior turnover and
• Experience requirements in case of government tenders
DIPP recognized Startups can now get listed as Sellers on the Government of India’s largest e-procurement portal – Government e-Marketplace.
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3. Self Certification under Labour and Environmental Laws
Startups are allowed to self certify their compliance under six labor laws and three environment laws. This is allowed for a period of five years from the date of incorporation of the entity.
Furthermore, such a benefit is given in order to reduce the regulatory burden for startups so that they can focus on their core business and keep compliance costs low.
4. Easy Winding Up of Company
Startups also known as fast track firms can be wound up within 90 days as against 180 days for other companies.
Further, an insolvency professional shall be appointed for liquidating the assets and paying creditors. This would be done within six months of filing an application to make such an exit.
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5. Fund of Funds for Startups
To provide equity funding support for development and growth of innovation driven enterprises, the government has set aside a corpus fund of 10,000 crore managed by SIDBI. The Fund is in the nature of Fund of Funds, which means that the Government participates in the capital of SEBI registered Venture Funds, who further invest in Startups. INNOVATORS
Startup is the process which starts with
a new thinking and commitment to do
something different.Shri Suresh Prabhu
Hon’ble Minister of Commerce & Industry, Government of India
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2. Tax Exemption on u/s 56 of Income Tax Act
If a Startup, having certificate from the Inter-Ministerial Board Certificate, receives any consideration for issue of shares that exceeds the face value of such shares, then the aggregate consideration, up to Rs. 25 Crore, received for such shares that exceeds the fair market value of the shares is exempted from tax.
1. 80 IAC Tax Exemption
The Startup recognized by DPIIT, is eligible for getting 100% tax rebate on profit for a period of three years in a block of seven years provided that annual turnover does not exceed Rs 25 crore in any financial year.
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3. Exemption from tax on long-term capital gains
Eligibility criteria
capital gains have been invested in the fund notified by CG within
6 months from transfer of the asset
Maximum Amount of Investment is 50 lakh
Lock-in period is at least 3 years
4. Tax exemption to individual/HUF on investment of long-term capital gain in equity shares of Eligible Startups u/s 54GB
An Individual/HUF is allowed for exemption from tax on long term capital asset being residential property on investment of proceeds of such transfer in subscribing equity shares of a Startup, if they fulfill the eligibility criteria of section 54GB.
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STARTUP PORTAL
The Startup Portal is India's largest online networking platform for startups and entrepreneurs, connecting them to tens of thousands of Investors, Incubators, Accelerators, Mentors and other startups across a range of industries, locations and other criteria.
Startups on the portal can also access a wealth of free resources and participate in various challenges and programs hosted by corporate and government bodies.
hub
The Startup Hub India, is an Intuitive way for Entrepreneurs to connect with Startup Accelerators, Business Incubators, Investors, Mentors and Advisers.
A single window access to all the business recourse, information on starting a new business, expanding an existing business and scaling up an already growing business.
Its a place to showcase your talent to the group of Investors, VCs and Business Incubators.
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Startup India Online Hub India’s Largest Virtual Incubation Platform
www.startupindiahub.org.in
Discover, Connect, &
Engage with Ecosystem
Stakeholders
Invest or
Ment or
Incubat orAccelerat or
Govt . Bodies
St ar t up
Applications to
enablers
Tools & Templates
Networking &
Engagement
Curated Learning
Programs
Information
Discovery
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Launched by Nirmala Sitharaman
Minister of State for Commerce and IndustryApril 1, 2016
hubIn its bid to strengthen the startup ecosystem in the country, thegovernment has launched the Startup India Hub, a virtual onlineplatform for all stakeholders of the entrepreneurial ecosystem inIndia to discover, connect, and engage with each other.
The portal connect startups, investors, funds, mentors, academia,incubators, accelerators, corporates, government bodies, andmore. It solve the problem of information asymmetry and lack ofaccess to knowledge, tools, and experts. The Hub aims to be adynamic and interactive platform that facilitate learning anddevelopment, networking, mentorship, and funding for startups.The idea behind the platform is to aggregate different offerings ofthe ecosystem and enable discovery by the right audience.
The platform is more like LinkedIn for the Startup Ecosystem. It notonly brings startups and investors together but aims to bringtogether entire communities, be it startups, incubators oraccelerators, to work towards the greater good of the nation, ifsynergies are met
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Discussion Forum
Discussion forum, is an online discussion site where people can hold conversations in the form of posted messages. It is a place where startups can find resources and discuss challenges that Indian startups are facing. This forums is a great way to fill the gaps of knowledge, get or give expert advice, and enjoy a sense of community.
This forum allow to ask questions and get advice on topics related to DPIIT Recognition (Startup India Scheme), Funding and Loans, Government Schemes, I have an Idea, Starting a Company, Startup India Portal, States Startup Policies and Eco system.
It is the best platform to discuss the startups and can post questions and get answers from a lot of business experts. It is theplace to discuss anything in detail and get the best ideas on improving startup and running it successfully. It connects the successful startup founders, investors, mentors, and CEO from bigger companies.
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Discussion Forum
It helps a Startup
To get new ideas
Insight into the state of
industry
Mentorship
To share knowledge
Business opportunities
To find resources and
discuss challenge
To get or give expert advice
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