A nation can only prosper when youth of the country is job creator and not job seeker. And with this very motive our PM launched ‘Startup India Standup India’ – an action plan, which is backed by Department of Industrial Policy and Promotion (DIPP). The main idea behind this plan is to generate more employment in the country and make the country a better place to live in.
Here are some plans to boost entrepreneurship in India under the Startup scheme:
- Self certification
The start-ups will adopt self-certification to reduce the regulatory liabilities. The self-certification will apply to laws including payment of gratuity, labour contract, provident fund management, water and air pollution acts.
- Start-up India hub
An all-India hub is created as a single contact point for start-up foundations in India, which is helping the entrepreneurs to exchange knowledge and access financial aid. Anyone can call with any issue related to a startup. The hub have responded to nearly 12,000 people so far – on phone (1800-11-5565), on email ([email protected]), and even Twitter.
- Register through app
An online portal, in the shape of a mobile application, is launched to help start-up founders to easily register. Read Startup India Action Plan.
- Patent protection
A fast-track system for patent examination at lower costs is being conceptualised by the central government. The system will promote awareness and adoption of the Intellectual Property Rights (IPRs) by the start-up foundations.
- Rs 10,000 crore fund
The government will develop a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years, to support upcoming start-up enterprises. The Life Insurance Corporation of India will play a major role in developing this corpus A National Credit Guarantee Trust Company (NCGTC) is being conceptualised with a budget of Rs 500 crore per year for the next four years to support the flow of funds to start-ups.
- No Capital Gains Tax
At present, investments by venture capital funds are exempt from the Capital Gains Tax. The same policy is being implemented on primary-level investments in start-ups.
- No Income Tax for three years
Start-ups would not pay Income Tax for three years. This policy would revolutionize the pace with which start-ups would grow in the future.
- Tax exemption for investments of higher value
In case of an investment of higher value than the market price, it will be exempt from paying tax.
- Legal support
A panel of facilitators will provide legal support and assistance in submitting patent applications and other official documents.
A rebate amount of 80 percent of the total value will be provided to the entrepreneurs on filing patent applications.
- Easy rules
Norms of public procurement and rules of trading have been simplified for the start-ups.
- Faster exit
If a start-up fails, the government will also assist the entrepreneurs to find suitable solutions for their problems. If they fail again, the government will provide an easy way out. Read Startup News.