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Prime Minister Narendra Modi had announced the initiative of ‘Startup India, Standup India’ in his Independence Day address last year. He announced a self-certification scheme in respect of nine labor and environment laws and said there will be no inspection during the first three years of the launch of the venture. Addressing the primary conference of start-up entrepreneurs, Modi declared associate action commit to boosting such ventures that square measure seen as key to employment generation and wealth creation.
Top takeaways of speaks-
1. Compliance regime based on self-certification
Based on self-certification, the purpose of compliance rule is to reduce the regulatory burden on startup. This self-certification applies to laws like gratuity, contract labor, employee provident fund, payment of water and air pollution acts.
2. Startup India hub
As a single point of contact, a startup India hub would be created for the entire startup ecosystem for the exchange of knowledge and access to funding.
3. Simplifying the startup process
Filling a small form through a mobile application and online portal will enable you to set up startup. A mobile app would be launched by the government on 1st April, through this app startups can be registered in a day. A portal for sanction, approvals, and registration also would be there.
4. Patent protection
The government is also working on a legal support for fast-tracking patent examination at lower costs. It will encourage startups to adopt awareness and intellectual property rights (IPRs) and help them in making IPRs safe and commercial.
5. Funds of funds with a corpus of Rs 10,000 crore
A fund with an initial corpus of Rs.2500 crore and a total corpus fund Rs.10,000 crore over the four years is set up by the government for funding to startups. This fund will be managed by the private professionals associated with the industry, while LIC will be co-investor in the fund. Credit Guarantee Fund for start-up will help in introducing the flow of enterprise loan from the banking system, ensuring guarantees against the risk.
6. Credit Guarantee Fund
With the budget of Rs.500 crore per year, A National Loan Guarantee Trust is being presumed for next four years.
7. Exemption from Capital Gains Tax
At present, investment by venture capital funds I a startup is free from this law. Now, this is also being expanded in the investments made by Incubators initially.
8. Tax exemption for startups
Income tax exemption to startups announced for three years.
9. Tax exemption on investments above Fair Market Value
10. Startup fests
Innovation core programs for college students in 5 lakh colleges. there’ll even be an annual broader grand challenge to make world category incubators.
11. Launch of Atal Innovation Mission
The Atal Abhinav Mission has started promoting innovation and encouraging talent among the people.
12. Setting up of 7 new research parks
7 new research park set up by the government with an initial investment of Rs.100 crore in each, 6 in IITs and one in IISc.
13. Promote entrepreneurship in biotechnology
For promote biotechnology 5 new bio- clusters, 50 new bio- incubators, 20 bios connect offices and 150 technology transfer offices would be installed.
14. Innovation focused programs for students
There will be innovation core programs for students in 5 lakh schools.
15. The Panel of Facilitators to provide legal support and assist in the filing of a patent application.
16. 80 percent discount on filing of patent application by startup
17. Relaxed norms of public procurement for startups
18. Faster exits for startups
Credit- India today
