Simple process
The government of India has launched a mobile app and a website for easy registration for startups. Anyone interested in setting up a startup can fill up a simple form on the website and upload certain documents. The entire process is entirely online.
Reduction in cost
The government also provides lists of facilitators of patents and trademarks. They will provide high-quality Intellectual Property Right Services, including a brief examination of patents at lower fees. The government will bear all facilitator fees, and the startup will return only the statutory fees. They will enjoy an 80% reduction in the cost of filing patents.
Easy access to Funds
The government set up a 10,000 crore rupees fund to provide funds to the startups as venture capital. The government is also giving guarantees to the lenders to encourage banks and other financial institutions for providing venture capital.
Tax holiday for 3 Years
Startups will be exempted from income tax for three years, provided they get a certification from Inter-Ministerial Board (IMB).
Apply for tenders
Startups can apply for government tenders. They are exempted from the “prior experience/turnover” criteria applicable to regular companies answering government tenders.
R & D facilities
Seven new Research Parks will be set up to provide facilities to startups in the R&D sector
No time-consuming compliances
Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with nine labour and three environment laws.
Tax saving for investors
People investing their capital gains in the government's venture funds will get exemptions from capital gains. This will help startups to attract more investors.
Choose your investor
After this plan, the startups will have an option to choose between the VCs, giving them the liberty to choose their investors.
Easy exit
In case of exit – A startup can close its business within 90 days from the date of application of winding up
Meet other entrepreneurs
The government has proposed to hold two startup fests annually, both nationally and internationally, to enable the various stakeholders of a startup to meet. This will provide substantial networking opportunities.
Startups are being highly encouraged by the government. Their benefits are immense, which is why more people are setting up startups.
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