Startup India Plan: Prime Minister Narendra Modi made these 10 big announcements
1) Rs 10,000 crore fund for startups
At the launch event of the Start-up India Action Plan, the Prime Minister also announced a fund of Rs 10,000 crore for new entrepreneurs. To support financing of startups, the government will create an initial fund of Rs 2,500 crore with a total corpus of Rs 10,000 crore over the next four years. The fund will be managed by private sector professionals while Life Insurance Corporation will be a co-investor in the fund.
2) All work is now done in one window
The central government will launch a mobile app and website on April 1 that can be used by startups to register their company within a day. It will act as a single window for clearances, approvals and registrations.
3) Self-certification scheme also announced
Modi also announced a self-certification scheme for compliance with nine labour and environmental laws. Apart from this, he announced the facility of exemption of start-ups from any investigation for three years.
4) Liberal patent regime will also be introduced
A liberal patent system will also be introduced for these new technology-based enterprises coming up with innovative thinking in the country. These enterprises will be given 80 percent discount in registration fee in patent registration. Legal support will also be provided for examining patent applications at low cost. This will also make start-ups aware about intellectual property rights and they will be able to protect their IPR and commercialize them.
5) Government will provide financial help to startups
Apart from this, the credit guarantee fund created for start-ups will also flow venture loans from the banking system to the start-ups. This fund will provide guarantee against risk. The government has proposed to create a National Credit Guarantee Trust Company to which a budget of Rs 500 crore will be allocated annually for the next four years.
6) Startups get income tax exemption for three years
Profits earned by startup entrepreneurs will be exempted from income tax for the first three years of starting the business. To promote financing in such ventures, entrepreneurs will also be exempted from capital gains tax at the rate of 20 percent on sale of their assets after making investments. This exemption will also be available on investments made by venture capital funds recognized by the government.
8) Startup Hub
The Startup India Hub will act as a single window for all the players of this ecosystem. The responsibility of this hub will be to provide financial assistance to startups and promote knowledge exchange programs.
9) Provision to give easy exit options to startups
A provision will also be made in the bankruptcy law to provide a simple exit option to start-up enterprises to close their business. Under this, start-ups will be able to close their business within a period of 90 days.
10) Atal Innovation Mission to promote entrepreneurship and innovation
To promote innovation, Atal Innovation Mission will soon be introduced. Through this, new entrepreneurs will be trained. Along with this, annual awards will be announced to encourage entrepreneurs doing good work.
