What is Startup India Initiative
Startup India & Standup India
The most favoured scheme for entrepreneurs, by Government of India is Startup India Scheme. It is a way for many budding entrepreneurs who wish to start their own business.
Startup India Standup India is a project started by PM Narendra Modi, an initiative to make an economy where there are ideas and products instead of just surging service and processing industry. It is expected to build an Eco system for startups in in India, for financial development and create more employment opportunities.
Startup India Action Plan was started in 2016, and from then several programs have been undertaken. Startup India Initiative is a vision of changing the country into a land of opportunities and employment instead of unemployed.
Standup India scheme is for financing SC( Scheduled Caste) or ST(Scheduled Tribes) and/or women entrepreneurs.
What is Startup India?
Startup India is an action to build an Eco system to promote and sustain business enterprise in the country. This is based on plan aimed at promoting financing for start ups to encourage startups with jobs creation.
Over the last two years startup India has seen entrepreneurship from all parts of the country, which shows that the Startup India & Standup India Initiative has been received well and used across all domains, economic strata and geographies.
This initiative is not restricted to digital/technology sector but grows in wide range of sectors like, manufacturing, education, healthcare and is not only confined to Tier 1 cities but is also spread across Tier 2 & Tier 3 cities.
Standup India Scheme is to facilitate bank loan from Rs.10 lakhs to Rs 1 crore to at least one woman borrower or at-least one SC or ST borrower, per bank for setting up an enterprise, in the field of manufacturing or service or trading sector. The rate of interest would be lowest applicable rate and is repayable in seven years.
Legal requirements to establish a start up
- Registered under companies Act 2013.
- Registered, as a partnership firm under Section 59, of Partnership Act 1932 ,
- Registered, as a limited Liability Partnership under Limited Liability Partnership Act 2002.
This means that The Sole Proprietorship Firms are not to be considered under Startup India Scheme.
Startup India Benefits
Under this new action plan , Startups accoss the country have been exempted from tax for 3 years, capital gains tax exemption, and a fund of Rs.10,000 crores in the form of capital. There are some other benefits too like, a self certification compliance system whereby, there will be no inspections for first three to five years, reduction in patent registration up-to 80% and trademark filling fees up-to 50%, free legal assistance, simple entry and exit norms, protection of intellectual property rights.
And to encourage entrepreneurship among women and SC/ST groups of society, an app is all set to be launched to create a platform for interaction with startups. Government to ensure 90 days windows to close business for startups.
Eligibility Criteria To Fall Under Startup India Scheme
To be eligible under the scheme, a startup must be
- Incorporated as a Private Limited Company,
- A Limited liability Partnership, or a partnership firm.
- The start up, should not be a result of dividing or rebuilding of an existing entrepreneurship, in the sense it has to be a completely new venture but not a part of existing firm.
- All businesses started after 2011 Feb, are eligible to be involved in startup scheme.
- The business must be engaged in production of new product or give new services.
- The startup must have obtained approval from, DIPP( Department of Industrial policy and promotion) that business is innovative.
Startup India Initiative is essential in leading India in a proper direction of development. The most important thing is that it involves youth of country, as startups have fresh minds and are coming out with new innovative ideas, energy, skills, and new thinking to lead business in a effective way.
India has a large consumer base in the world, for every new segment there is opportunity of new venture, like infrastructure, education, healthcare are in dire need of up-gradation and innovations. This is where startups can play a crucial role and make huge difference.
The job creation was one of the main idea which was the basis for startup India. While the scheme is still a maturing one and cannot create jobs and employment overnight. But, it has been received in a good way and many people have come with innovative ideas.
The program is connected to all the IITs, IIMs, NITs and other reputed institutions for successful launch of this campaign. The scheme has given a new aspect to entrepreneurship and has helped many individuals with new and innovative ideas in setting up their businesses.