The startup wave isn't only a wave in India and one of the key reasons behind its growth has been the strategic initiative called Startup India. It is the flagship program launched in the year 2016 by The Department for Promotion of Industry & Internal Trade (DPIIT) and serves as an innovation and entrepreneurship catalyst that provides a supporting structure to new businesses for thriving around. Let us now dive a little deeper into this transformative initiative, see how it may help turn your business idea into a reality and focus on seed funding.
What is Startup India?
Startup India is one of the flagship programs of the Government of India that operates for the cause of innovation and entrepreneurship in India. Here, the thrust on nurturing innovation, creating jobs, and generating economic growth remains the mainstay.
Startup India Certificate offers a variety of benefits and resources to startups, which makes it relatively easy to get over the challenges of starting or scaling a business in India.
Key Features and Benefits of Startup India
1. Easy Registration Process
Online Registration Paperwork filing is slow. Startups India launches a dedicated portal, one can make the online registration very simple and fills the application form by attaching the required documents.
Mobile App A dedicated mobile application has been offered to bring about the registration of the startups and resources on the smartphone platforms.
2. Financial Benefits
Income Tax Exemption: Tax Holiday! The startups registered under this scheme are exempted on profits to the extent of 100% under Income Tax for any 3 out of 7 years from the date of incorporation.
Angel Tax Exemption: Funding from recognized angel investors under the Angel Investor Scheme is exempted from angel tax thereby increasing the investment in early-stage startups.
Fund of Funds: The government has, under a Fund of Funds for Startups (FFS), invested in venture capital funds that focus on the promising startups.
Credit Guarantee Scheme: Credit guarantee schemes make it easier to raise debt funding; risks associated with lending reduce.
3. Seed Funding Support
Startup India Seed Fund Scheme: It addresses a long-standing issue of seed funding for early-stage startups. It is offering seed funding in the form of grants or convertible debentures to prove the concept, build a prototype, undertake product testing, explore and enter a market, and finally, commercialize.
4. Mentorship and Networking
Startup India Hub: Get advice from experienced mentors, incubators, and industry peers and tap into their experience and known how.
MAARG Portal: This portal connects the founders of a startup to their mentors who then can give them bespoke guidance
Networking Events: Networking events and workshops, with an objective that it connects a startup to investors, partners, and other players in the entire ecosystem of a startup.
5. Intellectual Property Protection
Patent Examination through Fast-track: Quickly file patents and get fee rebates for the patent examination process.
Legal Support: Patent filing, trademark registration, and other related IP matters.
6. Regulatory Ease
Self-Certification: Relief from compliance burden through self-certification of labor and environmental laws.
Easy Exits: Avail yourself of easier exits when the operations are wound up.
7. Government Procurement
Relaxing Norms: Easy access to government tenders acting as a passage to large markets and high growth potential.
8. Incubation and Industry-Academia Partnerships
Incubation Support: Financial support to incubators and nurturing and preparing new ventures.
Industry-Academia Linkage: Connect the industry with academia so that each other initiates and promotes innovation and knowledge amongst each other.
9. Awareness and Training
Workshop/Seminar: Attend all the workshop/seminar related to entrepreneurial skills/building knowledge possible.
All online resources, learning materials, and guides regarding all aspects of setting up and running a business.
How to apply under the Startup India scheme
Business incorporation: Private Limited Company, Partnership firm, or Limited Liability Partnership.
Application form: Details of your startup.
Upload documents: Incorporation certificate, PAN, etc.
Self-certification declaration: Declaration that all eligibility criteria have been complied with.
Recognition number: It would be done after approval.
Seed funding through Startup India
This is not just a government initiative but has become a movement transformed from developing a culture of innovation and entrepreneurship to transforming the Indian economy. It equips a new generation of entrepreneurs to generate solutions, provide employment, and be a part of India's story.
Whether it is a dream, an idea that could really make a difference, or only an innovative solution to a nagging problem, Startup India provides a platform and support to make it happen.
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