Ever since the Startup India scheme launched in the country, the innovators from pan India are gathering on a common portal that embraces new ideas and advocates employment.
Startup India Scheme
The ultimate objective of the Startup India scheme is to trigger the sense of innovation among upcoming entrepreneurs. The startup India scheme was established to trigger employment in the country and encourage economic growth. Through this initiative, the government is striving to embrace new ideas, research, and innovation. Let’s explore the benefits of Startup India registration.
Benefits of Startup India Registration
Startups are more vulnerable to failure in the initial stage of their lifecycle. These entities often found themselves in a dilemma of safeguarding the existence against the odds, including government compliances. But thanks to Startup India initiatives, which offer them a cushion against such turbulence by shredding off some tight regulations. Now startups are permitted for self-certification with nine labor and environmental laws.
The respective authorities would not conduct any sort of investigation for a period of three years. However, in the case of verifiable violations, the concerned authority might issue an investigation order and send an official to look into the matter. In the case of environment laws, startups that come under the ‘white category’ of the Central Pollution Control Board (CPCB) are eligible for self-certified compliance. Only random investigation would be applicable to them.
The startup working under the Startup India scheme does not need to entertain any tax liabilities for three years. Moreover, incoming funds from incubators and angel investors are also exempted. The tax exemption for three years means that a startup can capitalize on the funds in their own way and use it for business growth. Furthermore, the government also provides some tax relaxation on the front investment above the fair market value. This is probably one of the prominent benefits of Startup India registration.
One of the significant advantages of Startup India includes rendering firms is an option for registration via a single form. The registration process can also be completed through a Startup India mobile application. The application encloses a single form that permits startups to complete the registration formalities.
This mobile application yields single-window clearances for the startups that let cater to formalities regarding registrations, approvals, filing compliances, etc. The application has laid platform for startups to get registered in a few taps. Embracing the online portal is one of the best benefits of Startup India registration.
The Startup India scheme allows startups to interact with other startup stakeholders at a specific place and time. These meetings are conducted twice annually in the form of a fest. These fests are being held on domestic as well as on international levels. Such an advantage allows the startups to explore more alternatives for funding as well as a business idea to ensure growth.
Government projects are underpinned with growth potential and monetary incentives. Unfortunately, government projects are not easy to obtain due to huge competition. The startup India scheme has given some allowance to eligible entities by providing them easy access to such tender.
Research and Innovation Benefits
Startup India advocates innovation and research among those who are projecting themselves as entrepreneurs in the upcoming time. The government is taking every possible measure to support such individuals. The government is committed to establishing seven new research parks for the research and development of the products. Embracing new ideas and innovation is one of the critical benefits of Startup India registration.
Startup Patent Application and IPR Protection
Startup India also dealt with the services of intellectual property and resources to protect the patented ideas of the startup against the possible infringements. It also helps them commercialize their IPRs. This includes:
- Swift processing of startup patent application.
- Rendering 80% rebate on the patent filing when contrasted with other companies.
- Rendering 50% rebate on the trademark filing when contrasted with other companies.
- A panel to assist the startups on the front of government support and IP applications.
Hassle-Free Winding Up Of the Company
Startups under the Startup India scheme can wind up their business within three months. Moreover, to ensure the seamless closure of the establishment, startups should hire insolvency experts for liquidating the assets.
SIDBI Fund as Corpus Fund
The Indian government has allocated Rs 10,000 Cr. for the development of the startups in the country. The management of such funds is done for SIDBI and its jobs to render equity funding support for the innovation-driven enterprises.
Access to the Government Marketplace
Government e-Marketplace (GeM) is the web-based portal and one of the prominent markets for Government Departments to procure services and products. DPI Recognized Startups are permitted to use such a platform to sell their offerings to government-based entities. This opens a door of opportunities for startups looking to work on trail orders with the government.
Key features of Startup India Campaign
- Single Window Clearance via the mobile application
- Corpus fund of Rs 10,000 crore to triggers the development of the startup.
- The patent registration fee would be 80% less than the original fee.
- Liberalized Bankruptcy Code for the seamless exit.
- Three years of relief from mystifying inspections
- Three years of relief from the Capital Gain Tax.
- No tax on profit for 3 years
- The non-existence of red tape
- Self-certification compliance
- Innovation hub for business enthusiast under Atal Innovation Mission
- New schemes having provisions for IPR protection to start-ups and new firms
- Encourage innovation and entrepreneurship.
The Indian government has launched the Startup India scheme to boost employment in the country. It also supports innovation and research by providing the base for new business ideas seeking funds to thrive in the competitive space. Being a government-driven initiative, the Startup India scheme hosts an array of features that support the development and embrace change for a better future. It is also likely to increase the employment rate significantly by creating jobs for different sectors.
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