PM Modiís Startup India Plan: 3 Years Tax Holiday and Rs. 10,000 Crore Fund for Startups
Prime Minister Narendra Modi on Saturday unveiled the ambitious ĎStartup Indiaí initiative to boost startup businesses and digital entrepreneurship in India. He announced the salient features of the plan at the Vigyan Bhawan auditorium, New Delhi.
A few significant features of the plan are as follows:
■ Tax Exemption for Startups: Profit of startups set up after 1st April, 2016 will be exempted from income tax for a period of three years. Investment of oneís own wealth will also be exempted from Capital Gains tax.
■ Fund for Startups: The Government will set up a fund with a corpus of Rs. 2500 crore to support growth of startups. The fund will have a total corpus of Rs 10,000 crore over four years.
■ Self-certification based compliance: Startups will be allowed to self-certify compliance with labour and environmental laws. There will be no inspection during the first three years of launch of a venture.
■ Startup India Hub: A single point of contact for interactions with the government.
■ Mobile App: A mobile app will be launched on 1st April to simplify the process of registration. It will contain a small application form which can be filled up for registering a startup in one day.
■ Faster Patents: Filing patents and intellectual property claims takes months. This process will be simplified through a fast-track mechanism for startups. Patent fee will be reduced by 80% and cost of legal facilitators for startups will be borne by the government.
■ Easier Exits: The government is trying to make faster exits for startups in case of failure. A bill will be introduced in the Parliament to facilitate exits in 90 days.
■ Relaxed Norms for Public Procurement: Startups will be exempted from the criteria of prior experience in order to help them compete with experienced companies in public procurement. Quality, however, will not be compromised.
■ Credit Guarantee: A credit guarantee scheme of Rs. 500 crore per year will be launched to patronize entrepreneurship for the next four years.
■ Atal Innovation Mission: The mission aims at promoting research and development. It includes 500 tinkering labs, 35 public-private sector incubators, 31 innovation centres at national institutes, 7 new research parks, 5 new bio-clusters.
■ Women Participation: The government will try to increase participation of women in startups.
■ Innovation Programmes: Core innovation programmes will be organized in 5 lakh schools to encourage innovation. Startup festivals will be organized to increase visibility.