All You Need To Know About PM Modi's Startup India Plan!
Home Lifestyle Here’s All You Need To Know About PM Modi’s Startup India Plan!
Here’s All You Need To Know About PM Modi’s Startup India Plan!
1. Compliance regime based on self certification.
To reduce regulatory burden, startups shall be allowed to self-certify compliance with labour and environment laws. In case of labour laws, no inspection will be conducted for three years. In case of environment laws, startups under ‘white’ category would be able to self certify compliance.
2. Startup India Hub will be single-point of contact and hand holding.
The start up India hub will act as a contact and a firm hand hold between the other start ups in India.
3. Set Up Your Startup With A Single Form.
A startup will be to able to set up by just filling up a short form through a mobile app and online portal that will be launched in April.
PM Modi said patent protection and IP rights are a major concern for Indian startups. The government will make IPR procedure transparent for startups. Fast track mechanisms of startup patent applications – in order to allow startups to realize the value of their IPRs at the earliest possible. Patent applications of the startups shall be fast tracked for examination and disposal.
5. Panel of facilitators to provide legal support and assistance in filing of patent application.
Facilitators shall provide assistance for startups in filing and disposal of patent applications related to patents, trademarks and design under relevant Acts. Government shall bear the entire fees of the facilitators for any number of patents, trademarks or designs that a startup may file.
To enable startups to reduce costs in their crucial formative years, startups shall be provided an 80% rebate in filing patents vis-a-vis other companies.
7. Relaxed norms of public procurement for startups.
to provide an equal platform to startups vis-a-vis the experienced startups/companies in public procurement, startups (in the manufacturing sector) shall be exempted from the criteria of prior.
8. Faster exits for startups.
To make it easier for startups to exit, provision for fast-tracking closure of businesses have been included in ‘The insolvency and Bankrupcy Bill 2015’. Startups with simple debt structures may be wound up within a period of 90 days from making of an application for winding up on a fast-track basis.
9. Funds of funds with a corpus of Rs 10,000 crore.
To provide funding support for development and growth of innovation driven enterprises, Government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over a period of 4 years.
To catalyse entrepreneurship through credit to innovators across all sections of society, credit guarantee mechanism through National Credit Guarantee Trust Company/SIDBI shall be rolled out with a budgetary corpus of Rs 500 cr per year for the next four years.
Exemptions shall be given in case capital gains are invested in the fund of funds recognised by the government. In addition, existing capital gain tax exemption for investment in newly formed MSMEs by individuals shall be extended to all startups.
12. Tax exemption for startups.
To promote growth of startups, profit of startups, set up after April 1,2016, shall be exempted from income-tax for a period of three years.
13. Tax exemption on investments above Fair Market Value.
In line with the exemption available to venture capital funds to invest in startups above fair market value (FMV), investments made by incubators above FMV shall also be exempted.
For showcasing innovation and providing a collaboration platform.
15. Launch of Atal Innovation Mission.
Launch of Grand Innovation Challenge Awards for finding low cost solution to India’s pressing and intractable problems.
16. Setting up of 35 new incubators in institutions.
Funding support of 40% (subject to a maximum of Rs 10 crore) shall be provided by central government for establishment of new incubators in existing institutions for which 40% funding by the respective state government and 20% funding by the private sector has been committed.
17. Setting up of 7 new research parks modeled on the research park at IIT Madras.
Government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each. These parks shall enable companies with a research focus to set up base and leverage the expertise of academic/research institution. 31 centres of innovation, 13 startup centres and 18 technology business incubators in national institutions will be established.
18. Promote entrepreneurship in biotechnology.
19. Innovation focused programmes for students.
Innovation core program shall be initiated to target school kids with an outreach to 10 lakh innovations from five lakh schools. A Grand Challenge Program (National Initiative for Developing and Harnessing Innovations) to support and award Rs 10 lakhs to 20 student innovations from Innovation and Entrepreneurship Development Centres. Uchhattar Avishkar Yojana has earmarked Rs 250 crore per annum towards fostering ‘very high quality’ research amongst IIT students.
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