Startup India scheme
Startup India Scheme is introduced by the government of India for reforming ways of generating wealth and employment. The primary idea of a start-up plan is to empower the youth by giving government assistance, benefits and encouraging and as well as creating new employment opportunities. Main advantages Startup Scheme is the Simplification of Work, Financial aid, Governmental clients through tenders and Networking opportunities. Startup India was introduced by Prime Minister Shri. Narendra Modi on 16th January 2016. This blog will tell you about the advantages and Eligibility of Startup India.
Benefits of Startup India–
- Financial Benefits
- Income Tax Benefits
- Registration Benefits
- Government Tenders
- Great Networking Opportunities.
1. Financial Benefits
The Majority of the startup India provides unique services in another way those services are patentable. In order to get their patents, they have to bear a heavy cost which is known as the Patent Cost.
Under this scheme, the government is giving an 80% tax rebate on patent cost. Additionally, the procedure of patent registration and other legal formalities is faster for them. Also, the government pays the fees for the procedure in order to obtain the patent.
2. Income Tax Benefits
Startups enjoy a considerable amount of benefits under the Income Tax head. The government exempts their 3 years income tax post the incorporation year. But this can be availed after getting a certificate from the inter-ministerial board. Also, they can claim exemption from tax under Capital Gains head if they are investing funds in categorized schemes.
3. Registration Benefits
Everyone has a reputation of incorporation and registration of business are difficult than running it due to complexity and long process. Under the Startup India scheme, an application is there to start the procedure and within 2-3 steps you would be done with the registration formalities.
4. Government Tenders
Everyone seeks to acquire Government tenders because of high payments and bulk projects. But it is not a cakewalk to acquire the government tenders. Under this scheme, the startups get the first preference for a government project. Interestingly, they are not required to have any prior experience.
5. Huge Networking Opportunities
Networking Opportunities mean the opportunity to meet with various startup stakeholders at a particular place and time and formal chance to expand your business with the help of networking. The government provides this opportunity by organizing 2 startups fests annually on an international and national level. The Startup India scheme also provides Intellectual Property and another related topic to create introduction and awareness.
Eligibility criteria for Registration under Startup India.
1. Firstly, the company to be incorporated must be a private limited company or a limited liability partnership firm LLP.
2. Secondly, the firms should have obtained approval from the Department of Industrial Policy and Promotion.
3. Thirdly, it must hold a recommendation letter by an incubation.
4. The firm must provide innovative schemes or products or should deal with unique ideas.
5. The Company should not be older than five years.
6. The total turnover of the company should not exceed 25 crores.
7. Lastly, it should not be a result of the demerger or reconstruction of a business already in existence. It should be a new entitled.