Startup India, a Flagship to Boost the Startup Ecosystem of India Narendra Modi is better known as a social reformer. His initiative Startup India and Standup India are fostering the growth of new startups in India. The program is playing a key role in encouraging the youth of India to come up with new business ideas.
Starting a business is a mammoth task. The ever changing business environment has made it a little unfeasible for the youth to execute their business idea into a reality. The Startup India program aims at creating a conducive business environment, which helps the aspiring entrepreneurs in coming up with new business solutions for old problems in the ever changing business environment. Innovation is one of the most crucial journey for the long term success of any country and to reiterate India as a hub of innovation, progress and development to compete on a global basis, it is necessary to incentivize the youth of the nation. Presently India holds a third badge in the terms of number of startups and first badge as the youngest startup nation, with more than 70% starters below the age of 35 years. Under the action plan of Startup India, startups can get registered and gain recommendation letter to avail various benefits. To get registered, there are certain eligibility criteria: The legal entity should be either a limited liability partnership, private limited company or a registered partnership. The age of a startup should not exceed five years. The annual turnover of a startup must not exceed 25 crores. For a startup it is not easy to comply with all the environmental and labor laws. They are extremely time consuming and often due to lack of clarity on these laws, young entrepreneurs land themselves in legal issues.
The benefits under startup India program includes relaxation in various environmental and labor laws. Once a startup gets recognized under this government portal, it can self-certify with 9 environmental and labor laws. No inspection shall be conducted for a period of three years for the labor laws, unless someone lodges a genuine complaint. In case of environment laws, companies which fall under white category, shall witness only random checks. The other benefit under startup India includes tax exemption for a period of three years and fast track of patent rights. The tax exemption and patent right benefits are accessible after gaining the approval from Department of Industry Policy and Promotion and the Inter-ministerial board.
The question which arises here is, how does a startup gain recognition under this program? To gain recognition, a startup can get a recommendation letter from either of the following: An incubator which can be either government registered, private registered or a post graduate college. Minimum 20% funding from SEBI registered venture capitalists. Has got Indian patent rights. This recommendation is viable only if the product or service is innovative or if the existing product or service adds value to the customers. The product or service must be commercially viable. The incubation and funding are two key stages for any startup. There are 278 government registered incubators and 20 private incubators. Finding the right sector specific incubator is one big challenge faced by startups. Often startups are afraid to disclose their ideas at the first stage. The startup India consultants help you find the best incubators according to the needs of your business. Incubators provide mentorship, training, seed funding and office space. The incubators give wider business exposure to the budding entrepreneurs and bring more of innovation and improvisation in a product, service or idea. Startup India Consultants realize that there is often shortage of funds while starting a business. To help entrepreneurs overcome this challenge, www.startupindiaconsultants.com help you find the right venture capitalists and angel investors.