An Introduction to Start-up India
What is Startup India All About?
Prime Minister Narendra Modi had announced ‘Start-up India, Standup India’ last year. This initiative aims to boost startups and innovation in India. The Start-up India initiative seeks to remove various hurdles that could affect the growth of start-up companies in the country.
This year, the Prime Minister has introduced the Action Plan for the Start-up India program.
We’ll give you an overview of a few of the key factors that are included in the Action Plan.
The Startup India Action Plan
- A Rs. 10,000 crore Fund for Startups
The government will create a fund for startup companies. The initial corpus will be Rs. 2,500 crore. A total corpus of Rs. 10,000 crore will be accumulated over four years.
- Single Point Registration for Startups
A mobile app will be launched alongside a web portal on 1 April 2016. This will allow start-ups to fast-track the registration of their companies.
- Fast-track Process for Filing Patent Applications
The Central Government is going to bear the costs of trademarks, patents and designs for start-up companies to enable the protection of intellectual property.
Additional Reading: Start-up India 2016: A new world order in the making
- Exemptions on Tax and Capital Gains
To encourage growth and to help companies retain capital, start-ups will be exempted from paying Income Tax for three years, subject to non-distribution of dividends by the company. Companies that invest capital gains in SEBI-registered venture funds will also be exempted from tax.
- A Faster Exit Strategy
According to the recently introduced Bankruptcy Bill 2015, start-up companies can be closed within a duration of 90 days from the date of filing for winding up on a fast-track basis.
The Start-up India Action Plan is an ambitious initiative undertaken by the Government of India to encourage the growth and development of the start-up culture and enhance innovation in India.