Startup India is a scheme launched by Shri Narendra Modi, Prime Minister of India on January, 2016. Under this scheme startups would be given certain benefits and exemptions for operations.
Which businesses are termed STARTUP under this scheme?
All businesses cannot be called startups and must fulfill certain criteria to be termed one.
- It must be registered as a private limited/ LLP/ partnership.
- It must not be older than 5 years on the date on application.
- The business should have a turnover of less than Rs. 25 crore.
- Startup must work towards innovation, development of new products, processes or services with technology or intellectual property.
- Certificate from Inter-Ministerial Board is essential to get 3 year tax exemption.
- Letter of recommendation for innovative nature of business from incubators.
What benefits and exemptions do the startups get?
Startups under the scheme are entitled to the following benefits and exemptions.
- Income tax exemption for 3 years
- 80% of patent fee to be refunded
- Seed funding easily available
- Capital Gain Tax exemption for investment in eligible Startup
- Environment and labour law exemption
- Best mentorship for startup
- Easy exit within 90 days
Under the startup India scheme, trademark and patent registration is given great importance.
How should one apply in the startup India scheme?
- Register for the company
- File trademark
- Develop a product prototype
- Keep roc up-to-date
- Search for recognized incubator or angle funding firm
- Apply for patent
- Get recommendation letter from incubator or angel funding firm
- Apply to Inter Ministerial Board for approval