With the amendment to the Companies Act, India saw a change in its corporate governance. The launch of the Start-up India initiative by the Indian government is a major milestone.
The benefits of the Start-up India program are numerous and have been instrumental in the development of entrepreneurship[1] culture in India. Seeing that, the start-ups provide opportunities for the creation of wealth, employment, and promotion of newly incorporated industries.
What is Start-up India Scheme?
The government of India has started the start-up India Scheme to generate the employment and wealth creation.
Start-up India Scheme is started by the Indian Government (Hon’ble Prime Minister launched the start-ups India) for the generation of employment and wealth creation. The Start-up India’s campaign aims to develop and innovative products and services and increase employment rates in India.
The objective behind the start-up India is to develop and increase the quality of products and services across India and intended with the increasing employment rate in India. Along with other benefits of Start-ups India, it also seeks to provide:-
- Simplified Work
- Financial Aid
- Networking Opportunities
- Government Tenders
Launched on 16 January 2016, Start-up India has promoted innovative ideas. It has seen unprecedented growth in the youth of the country. Mainly the start-ups in India get registered under the following types of companies:-
- Partnership Firm
- Limited Liability Partnership Firm (LLP)
- Private Limited Company
Benefits of Start-ups under Start-up India Scheme
The below mentioned are the benefits of Start-ups under scheme that a business owner can avail, which are as follows:-
Self-Certification
A company is needed to comply with various labour laws. Non-observance of such laws creates a strict liability.
However, to reduce regulatory liabilities, compliance with nine labour and environmental laws allowed start-ups to self-certify. If no inspection has been done for a period of three years
Tax Exemption
The registered start-ups under the scheme of Start-up India are exempted from tax. Such exemption is allowed for a period of the initial three years. Any investment made by the incubator in excess of the market value is exempted.
Investments made by angels are also exempt under this scheme. A tax holiday for the first three years means start-ups can completely utilize the revenues for business development purposes only. Tax exemption can be considered as the big benefits of Start-ups under start-up India Scheme
Single Window Clearance from Mobile App
The start-up India gives benefits to eligible companies to get register themselves through a single form which can be filled on accessing the app of Start-up India mobile app. There is only one form of application to allow start-ups to register themselves.
This application provides start-ups with single-window clearances for approvals, registrations, filing compliances, etc. and is the easiest way for any individual to start a start-up.
Patent Protection
In case you have applied and ever registered for a patent and very much aware of the complicated and inefficient process. Although under this scheme several initiative steps are taken by the government to protect your most valuable intellectual property. This involves a fast-track examination of patent applications along with the rebate of 80% of the total value of the patent fee is also authorized once the patent is filed.
Relaxed Norms for Public Procurement
Start-up India has led to equal opportunities for both start-ups and experienced entrepreneurs. Public obtainment norms have been relaxed for start-ups. This makes them easy to go for public procurement.
An Incubator Setup
The Start-up India scheme includes an incubator module as endorsed the public-private-partnership. The module gives the start-up, requisite knowledge, and support that are required by the start-ups. Currently, 118 incubators are powering the start-up ecosystem across India, helping the start-up ecosystem.
Networking Options
Under the scheme, start-ups get opportunities to meet other start-up stakeholders at a particular place and time. These meetings are held twice a year.
The meetings are conducted on both national as well as international levels. This opportunity provides start-ups to grow and develop after looking at other start-ups and also provides the opportunity to seek funds for their personal growth. It also gives them with a broader aspect of their day to day activities.
Government Projects
Government tenders are usually large and have higher monetary benefits. However, it is quite difficult to obtain. The reason behind is being the competitiveness involved in them.
However, under this scheme, start-ups are given incentives to receive government tenders. They do not even have to have any prior experience to be eligible to receive such tenders.
Research & Innovation Benefits
Start-up India encourages research and innovation among those who aspire to become entrepreneurs. There are proposals to establish seven new research parks. It ensures that facilities are provided to students and start-ups for research and development of their products /services.
Concluding Remarks
As the government of India, started the start-up India Scheme to generate the employment and wealth creation and aims to develop or innovate products and services and increase employment rates in India. The benefits provided by the government to the newly businessmen who start a new start-up to follow it as the same and avails benefits accordingly. Kindly associate with the Corpbiz expert to know more about the benefits of start-ups in India.
Read our article: What are the Common Mistakes Made By Start-ups in India?
