Startup India Scheme is an initiative by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of Startup India Scheme is Simplification of Work, Finance support, Government tenders, Networking opportunities. Startup India was launched by Prime Minister Shri. Narendra Modi on 16th January 2016. Let us learn more about Benefits and Eligibility of Startup India.
Benefits of Startup India
· Financial Benefits
· Income Tax Benefits
· Registration Benefits
· Government Tenders
· Huge Networking Opportunities
1. Financial Benefits
Most of the startups are patent based. It means they produce or provide unique goods or services. In order to register their patents, they have to incur a heavy cost which is known as the Patent Cost.
Under this scheme, the government provides 80% rebate on the patent costs. Moreover, the process of patent registration is faster for them. Also, the government pays the fees of the facilitator to obtain the patent.
2. Income Tax Benefits
Startups enjoy a good amount of benefits under the Income Tax head. The government exempts their 3 years income tax post the incorporation year.
But they can avail it only after getting a certificate from the Inter-Ministerial Board. Also, they can claim exemption from tax on Capital Gains if they invest money in specified funds.
3. Registration Benefits
Everyone believes that incorporation and registration of business are far more difficult than running it. It is because of the long and complex steps of registration.
Under the Startup India scheme, an application is there to facilitate registration. A single meeting is arranged at the Start-up India hub. Also, there is a single doubt and problem-solving window for them.
4. Government Tenders
Everyone seeks to acquire Government tenders because of high payments and large projects. But it is not easy to acquire government tenders.
Under this scheme, the startups get priority in getting government tenders. Also, they are not required to have any prior experience.
5. Huge Networking Opportunities
Networking Opportunities means the opportunity to meet with various startup stakeholders at a particular place and time. The government provides this opportunity by conducting 2 startups fests annually (both at domestic as well as the international level).
Startup India scheme also provides Intellectual Property awareness workshop and awareness.
Eligibility for Registration under Startup India Scheme
1. Firstly, the company to be formed must be a private limited company or a limited liability partnership firm.
2. Secondly, the firms should have obtained approval from the Department of Industrial Policy and Promotion.
3. Thirdly, it must have a recommendation letter by an incubation.
4. The firm must provide innovative schemes or products.
5. It should be a new firm or not older than five years.
6. The total turnover of the company should be not exceeding 25 crores.
7. Lastly, it should not be a result of splitting up, or reconstruction, of a business already in existence.
Challenges faced by Startup India
1. People generally believe startups are just about thinking about a new idea or plan. But in reality, execution of such a plan is more necessary than just thinking about it.
2. The view or perspective of the government on the startup India plan is quite short-term in nature. It does not look at the long-term path of the startups.
3. For the success of any new business, a competent workforce is necessary. But in case of startups, skilled workforce is not possible due to the lack of funds at the initial phase.
4. The risk of reaching failure is greater in startups as compared to other organisations. It is because they tend to take steps quite fast.
Conclusion
SRNEXT is registered under Startup India scheme. As in today’s scenario, there are lots of applications pending to get certificate, yet SRNEXT able to achieved the certificate in a very less time span.
