9 Benefits Of Startup India Program That Indian Businesses Can Avail

With the revision to the Companies Act, India's startup environment saw a number of changes. A significant accomplishment is the launch of the Startup India initiative by the Indian government. The Startup India initiative has various advantages and has played a significant role in the development of India's entrepreneurial culture.

It presents a chance to create jobs, make money, and advance indigenous industries. According to a NASSCOM and Zinnov research, India is the third-largest startup market worldwide. The goal of Startup India is to create an environment that encourages innovation and creativity. The programme Startup India offers a number of advantages.

The creation and invention of new goods and services are the objectives of Startup India. Additionally, it aims to boost India's employment rate. In addition to other advantages, Startup India aims to deliver the following:

• Simplified work
• Financial aid
• Networking opportunities, and
• Government tenders.

Since its launch on January 16, 2016, Startup India has experienced an increase in creative ideas. Additionally, it has witnessed an unheard-of rise in the entrepreneurial spirit among the nation's youth.

Most Indian startups register as one of the following types of businesses:

1. Partnership Firm
2. Limited Liability Partnership Firm (LLP)
3. Private Limited Company

Definition of Startup India as per DPIIT

Startups that meet the criteria outlined in G.S.R. announcement 127 (E) are eligible to apply for recognition under the Startup India Action Plan. When applying, startups must include supporting documentation.

Eligibility Criteria for Startup Recognition:

1. The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
2. Turnover should be less than INR 100 Crores in any of the previous financial years
3. An entity shall be considered as a startup up to 10 years from the date of its incorporation
4. The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconsutrctuon of an existing business shall not be considered a "Startup"

For more details please refer to the attached notification here

‍Startup India Scheme Eligibility

To be able to take advantage of the benefits offered by the plan, the afore mentioned company(s) must first meet the following qualifying requirements:

• The business must be a limited liability partnership (LLP) or a private limited corporation (Pvt Ltd).
• The business must have received Department of Industrial Policy and Promotion permission (DIPP).
• It needs a letter of recommendation from an incubator.
• Innovative items or schemes must be offered by the company.
• It should be a brand-new company that is under five years old.
• The company should not have a total turnover of more than 25 crores.
• It shouldn't be the product of an already-existing company, i.e. one that was formed as a result of the reorganisation plan.
• A start-up can receive a number of benefits after completing the above eligibility requirements.

Related: Startup India Scheme

Registration Process under Startup India

• Step 1: Incorporate your Business either as LLP or Private Limited
• Step 2: Register with Startup India as per the scheme
• Step 3: Upload mentioned Documents in a PDF format only
• Step 4: Mention if you wish to avail tax exemption
• Step 5: Self-certification
• Step 6: Get your recognition number

Benefits of Startup India Scheme

Here are the top 9 benefits of Startup India scheme that a every startup founder and business owner can avail:

1) Self-Certification

A business must adhere to numerous labour law requirements. Strict responsibility results from breaking these statutes. Due of their relative youth, startups tend to disregard eco-systems.

Startups are, however, permitted to self-certify compliance with nine labour and environmental regulations in order to lower their regulatory responsibilities. In this situation, there won't be any inspections for three years.

2) Tax Exemption

The startup registered under the Startup India programme are excused from paying taxes and this exemption is available for the first three years. Incubators are exempt from paying taxes on any investment they make that is worth more than the going rate.

Additionally, the strategy exempts investments made by angel investors. The startup can use all of the revenues for just business development thanks to a tax exemption for the first three years or attaining a particular threshold amount.

3) Single Window Clearance

Allowing qualified businesses to register themselves using a single form is one of the advantages of Startup India. Through the Startup India mobile application, this is possible. A single form on the application enables startups to register themselves.

Additionally, this app offers single-window clearances for approvals, registrations, filing compliances, etc. for entrepreneurs. The simplest way for anyone to launch a startup is in this manner.

4) Patent Protection

Anyone who has ever registered a patent will be familiar with how laborious the procedure is. However, the programme takes a number of measures to safeguard priceless intellectual property. This involves giving patent applications a quick review.

The efforts go beyond just expedited patent applications. Once the patent has been submitted, a rebate of 80% of the entire patent price is also given.

5) Relaxed Norms for Public Procurement

Previously, a business needed to have "previous experience" or a "requisite turnover" in order to apply for public procurement. But this is not the case. Startup India has opened the door for equal chances for beginning and seasoned business owners. The rules governing public procurement have now been loosened for startups. facilitating their decision to use public procurement.

6) An Incubator Setup

The Startup India programme has an incubator component. In this module, the public-private collaboration is encouraged. The module equips the startup with the necessary information and assistance that start-ups need.

There are currently 118 incubators supporting India's startup ecosystem, which is fuelling it.

7) Networking Options

The programme gives startups the chance to network with other startup stakeholders at a certain location and time. These gatherings are organised as festivals. These festivals take place twice a year.

Both national and international levels are involved in the fests. This gives entrepreneurs a fantastic opportunity to look at other startups as they grow and develop in addition to seeking finance. Additionally, it gives them a wider perspective on their regular activities.

8) Government Tenders

Government projects are usually large and have higher monetary incentives. However, it is fairly difficult to obtain one. The primary reason being the competitiveness involved in them.

However, under this scheme, startups are given incentives to receive government tenders. They are also not required to have any prior experience to be eligible to receive such tenders.

9) Research and Innovation Benefits

The most significant of them all is last. Those with an entrepreneurial aspiration are also encouraged to engage in research and innovation through Startup India. There are plans to establish seven new research parks. With the help of these parks, it will be possible for startups and students to conduct research and develop new products.

In India, this is a fantastic opportunity to launch your own company. Numerous advantages of Startup India might assist you in launching your firm. with a lot of opportunities and little compliance. Get them as soon as possible. This is the time to watch your business idea mature, expand, and materialise.

Best of luck!

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