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 bringing a new revolution to the commercial market of India. With a special place for innovation and development, Startup India looks forward to the glory of those people who can offer India a reinforced strength in the realm of technology. However, the questions which continue to be unanswered are- 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 set up 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 at 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 competitive opportunities for a business to grow.
#4 Self-certification
Along with tax obligations, leverage has also been given on the requirement of maintaining certification for labour laws and environmental laws. A startup can offer a self-certified copy of compliance for labour 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 set up under consideration for Fast Track. The job of this section is to boost the process of patent grants. About 80% of the patent fee has been reduced and patent holders would also enjoy a faster processing period.
Check Also: Startup India Program Registration, Benefits and Eligibility
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.