Startup India – Action Plan in bullets points
The Action Plan can be divided into the following broad heads:
• Simplification and Handholding
• Funding Support and Incentives
• Industry-Academia Partnership and Incubation
1. Self certification through startup mobile app in 6 labor and 3 environmental laws.
2. No inspection for 3 years in case of labor laws and random checks in case environmental laws.
3. A single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding will be created.
4. Mobile Application and Website with similar features to provide on-the-go accessibility for Registration, Tracking Regn. Status, Clearances, Approvals, Collaborations with Start-up Ecosystem Partner from 1.04.2016.
5. Fast-tracking of Startup patent applications and Panel of facilitators to assist in filing of IP applications along with Govt. bearing the facilitation cost.
6. Startups shall be provided an 80% rebate in filing of patents.
7. Government shall exempt Startups (in the manufacturing sector) from the criteria of “prior experience/ turnover” without any relaxation in quality standards or technical parameters.
8. Launch of The Insolvency and Bankruptcy Bill 2015 (“IBB”) for faster / voluntary closure of startups meeting specified criteria.
9. Set up of Fund in the nature of Fund of Funds, of total corpus of INR 10,000 crore over a period 4 years (i.e. INR 2,500 crore per year).
10. Capital gain exemption on investment in Govt. recognized funds.
11. Business Income of Start- ups exempted from income-tax for a period of 3 years, subject to non-distribution of dividend.
12. Proposing exemption from provisions of Sec. 56(2)(viib) of Income Tax Act 1961 to investment made by Incubators in Startup .
13. As part of “Make in India” initiative, Government proposes to hold one Startup fest at the national level and one Startup fest at the international level annually.
14. Setting up incubators in Public Private Partnership Model.
15. Govt. proposes to set up 13 Startup centers and 18 Technology Business Incubators (TBIs) at NITs/IITs/IIMs etc.
16. Setting up New Research Parks modeled on Research Park set up at IIT Madras with an initial investment of INR 100 crore each
17. Launch of programs named Innovation Core, NIDHI , Uchhattar Avishkar Yojana for Students.
The entity seeking to avail the benefits of Startup India Scheme shall fulfill the definition of Startup-
Private Limited Company (under The Companies Act, 2013) or a Registered Partnership Firm (under The Indian Partnership Act, 1932) or Limited Liability Partnership (under The Limited Liability Partnership Act, 2008) incorporated or registered in India not prior to five years working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence.
Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/ registration.
Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose.