What is Startup India?

The MHRD’s Startup India Initiative, launched on 16th January, 2016, a GOI initiative is a free online entrepreneurship program that has yet released multiple programs with the agenda of supporting budding entrepreneurs and getting their ideas to progress through systematic research, building a strong startup ecosystem. Developed in collaboration with Invest India and UpGrad, these programs are managed by the Startup India Team, which communicates to the Department for Industrial Policy and Promotion (DPIIT).

Benefits:-

1. Tax exemption:

Startups registered under the Startup India are exempted from income tax for the first three years on any profit earned, on the condition that the yield doesn’t cross 250 million Indian rupees in any of the financial years. Any investment made by investors is also exempted under this scheme.

2. Self-Certification:

Startups are required to comply with various labour law compliance. Startups being fairly new to the ecosystems end up neglecting them.

The Startups may self-certify in respect of following 6 Labor Laws:

i) Other Construction Workers’(Regulation of Employment & Conditions of Service) Act, 1996

ii) The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act,1979

iii) The Payment of Gratuity Act, 1972

iv) The Contract Labor (Regulation and Abolition) Act, 1970

v) The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

vi) The Employees’ State Insurance Act, 1948

3. Patent Protection:

Normally registering a patent is a slow-moving process. However, in the program several steps are taken for a fast-track patent application. In addition a rebate of 80% of the total value of the patent fee is also granted once the patent is filed.

4. Research and development module:

Startup India has launched an interactive online learning, research and development program to educate budding entrepreneurs, through different stages of their entrepreneurial journey. The learning and development module is available through the Startup India portal. This scheme helps the growing startups to not only get funds but also learn and develop .

Eligibility

1. The entity availing benefits must be registered either as a private limited company or registered as a partnership firm or a limited liability partnership
2. Turnover in any of the financial year should be less than INR 100 Crores.
3. The entity availing benefits is eligible for benefits up to 10 years from the date of its incorporation.
4. A startup formed by splitting up or division of an existing business will not be eligible.

Startups funded by the initiative

1. Benevo BENEVO is an organization for Essential Life Skills & General Awareness Company. It conducts the Corporate and Institutional training programs to groom the personality essentials of the forthcoming personnel and help polishing their soft skills thereby making them valuable employees for the organization.
2. Clootrack Clootrack is a service which helps brands identify what their customers perceive and help provide market insight using AI .
3. OCEO OCEO is a water purifier that works on a pay-as-you-use model where the consumers pay only for the amount of water purified and consumed. The consumer does not pay for any maintenance or buying cost but only installation fee and water fee which is about Rs.1 per liter.
4. Gingercrush It’s a print on demand service. where consumers can order customized products. The products include mugs, T-shirts, coasters, mobile covers, canvas prints, bathroom sets, shot glasses, etc.
5. Podnet Podnet provides a long-range wireless communication network for low power IoT devices. It helps you save upto 40% on electricity bills.

Application Process

Register your Business Register either as a private limited company or registered as a partnership firm or a limited liability partnership.

Register under Startup India Go to the Shram Suvidha Portal of the Ministry of Labour and Employment and register.

Upload necessary Documents Required documents are:

1. A letter of recommendation.

2. A letter from a government recognized Incubator.

3. A letter of funding of more than 20% in equity by a SEBI recognized fund or a recommendation letter by the Central or State Government of India or a patent filed and published in the Journal of Indian Patent office in the same field as of the business being promoted.

4. Registration or Incorporation Certificate.

5. A brief description of your business

Mention if you need tax exemption Startups do not have to pay income tax for the first three years but to avail such benefits, the company must be certified by the Inter-Ministerial Board (IMB).