Everyone is very excited about the Startup India campaign, which was announced on January 16 2016. This campaign has brought in a lot of hope for people who are looking forward to bring a new revolution to the commercial market of India. With special place for innovation and development, Startup India looks forward to glory those people who can offer India with a reinforced strength in the realm of technology. However, the questions which continue to be unanswered is- What benefits are available to a common man under Startup India Plan?
#1 Work through Partnership/ LLP/ form a Company
The prime feature of the Startup India campaign is that entities can be registered as a nominee to setup a startup. This means that even if you are working on a plan with your friend/ colleague/ relative you can easily make use of this scheme and get your project registered on the network. You are on longer required to maintain a separate provision and worry about sharing credits.
#2 Early Exit
It is obvious that not every startup is going to flourish with a rapid pace. There will be numerous startups which would look good on paper, but would fail miserably. To save the entrepreneurs from incurring losses and helping them to move on at an early stage, the campaign offers an option to make an early exit within a span of 9 days.
#3 Tax exemption
Startups would enjoy a tax-free period for the first three years. The income generated from the operation will not attract any form of income tax. Additionally, capital gains will also be exempted. This means that the Government is offering compete opportunity for a business to grow.
Along with tax obligations, leverage has also been given on requirement of maintaining certification for labor laws and environmental laws. A startup can offer a self-certified copy of compliance for labor laws and environmental laws to ensure that the budding entrepreneur/s are not overburdened with duties.
#5 Financial Support
It has been specifically declared that the Government of India will allocate INR 10000 crore for this initiative. INR 2500 crore is already in the fund along with various benefits and flexibilities under loans and arrangements.
#6 Hassle-free Patent system
The process of obtaining patents has become even simpler. A new committee has been setup under consideration for Fast Track. The job of this section is to boost the process of patent grant. About 80% of patent fee has been reduced and patent holders would also enjoy a faster processing period.
Entrepreneurs, who are ready with their startup plans would be required to download an app from their respective app market. The app will be released on April 1 2016 and will offer a single-point contact between the Government of India and the entrepreneurs. All the information with respect to the startup would be required to be transmitted over the app and upon consideration and analysis, a candidate would be allocated the required funds from the Government of India.