Startup India Plan: Prime Minister Narendra Modi made these 10 big announcements
1) Rs 10,000 crore fund for startups
At the launch ceremony 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 the Life Insurance Corporation will be a co-investor in the fund.
2) All work now on one window
The central government will launch a mobile app and website on April 1 that can be used by startups to register their companies within a day. It will act as a single window for clearance, approvals and registration.
3) Self-certification scheme also announced
Modi also announced a self-certification scheme for compliance with nine labor and environment laws. Apart from this, he announced the facility to exempt start-ups from any investigation for three years.
4) Liberal patent system will also be brought
A liberal patent system will also be introduced in the country for these new technology-based enterprises coming up with innovative thinking. These enterprises will be given 80 percent exemption in registration fees for patent registration. Legal support will also be provided to patent applications for examination at low cost. This will also create awareness among startups regarding intellectual property rights and they will also be able to protect and commercialize their IPRs.
5) Government will provide financial assistance to startups
Apart from this, the loan guarantee fund created for startups will also provide flow of enterprise loans to startups from the banking system. This fund will provide guarantee in exchange for risk. There is a proposal by the government to form a National Credit Guarantee Trust Company in which a budget allocation of Rs 500 crore will be made annually for the next four years.
6) Income tax exemption for startups for three years
The profits earned by startup businessmen will be exempted from income tax for the first three years of starting the business. To promote financing in such enterprises, entrepreneurs will also be exempted from capital gains tax at the rate of 20 percent on sale of their assets after investment. This exemption will also be available on investments by venture capital funds recognized by the government.
8) Startup Hub
Startup India Hub will act as a single window for all players in 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 option to startups
There will also be a provision in the Insolvency Law to give easy exit option to start-up enterprises to close down the business. Under this, startups will be able to close their business within a period of 90 days.
10) Atal Innovation Mission to promote entrepreneurship and innovation
Atal Innovation Mission will soon be launched to promote innovation. Through this, training will be given to new entrepreneurs. Along with this, annual awards will be announced to encourage entrepreneurs doing good work.
