To promote, growth and help the Indian economy, many benefits are being given by the government to entrepreneurs establishing startups.
The government of India (GOI) has started a mobile app and a website for easy registration for startups. Any person interested in setting up a startup can fill up a simple form on the website and upload certain documents. The entire process is totally online.
Reduction in cost
The government also provides a list of mediators of patents and trademarks. They will provide high-quality Intellectual Property Rights (IPR) Services including a fast examination of patients at a lower cost. The government bears all mediators fees and the startup will bear only the statutory fees. They will enjoy an 80% discount on the cost of filing patents.
Easy access to Funds
A 10,000 crore rupees fund is set up by the government of India to provide money to the startups as venture capital (VC). The government is also providing a guarantee to the investors to encourage banks and other financial institutions for providing venture capital.
Tax holiday for 3 Years
Startups will not require to pay income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).
Apply for tenders
Startup companies can also apply for government tenders. They are exempted from the “prior experience/turnover” criteria which are applicable for normal companies replying to government tenders.
Research & Development (R&D) facilities
Seven new R&D Parks will be set up to provide facilities for startups.
No time-consuming compliances
Numerous compliances have been simplified for startup companies to save time and money. Startup Companies shall be allowed to self-certify compliance with 9 labor and 3 environment laws.
Tax saving for investors
People investing their capital gains in the venture funds set up by the government of India will get an exemption from capital gains. This will help startups to get more investors.
Choose your investor
The startups will have an option to choose between the Venture Capitalists, giving them the right to choose their investors.
In case of exit, a startup can close its business operations within 90 days from the date of application of winding up
Meet other entrepreneurs
The government of India has proposed to hold 2 startup fests annually both nationally and internationally to enable the various investors of a startup to meet. This will provide huge networking opportunities.