Start Up India, Stand Up India

By BankBazaar | January 19, 2016

Start-ups in India

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.

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Dheeraj Kapoor

About Dheeraj Kapoor

BankBazaar is the world's first neutral online marketplace for instant customised rate quotes on Loans, Credit Cards, Insurance and Investment products. Shop for financial products just like you buy everything else now - online.

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