What is Startup India?
Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities.
What are the key compliance requirement made easy?
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Startups are allowed to self-certify compliance for 6 Labour Laws and 3 Environmental Laws (Refer FAQ details of laws)
For labour laws, for a period of 5 years. Startups will be inspected only on receipt of a credible and verifiable complaint of violation in the form of writing to the inspecting officer.
For environment laws, startups which fall under the ‘white category’ [as defined by the Central Pollution Control Board (CPCB)] would be able to self-certify compliance and only random checks would be carried out in such cases"
What Qualifies as a Startup under Startup India Scheme?
An entity shall be considered as a Startup:
1. If it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India.
2. Up to ten years from the date of its incorporation/registration;incorporation/registration.
3. If it's turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crores.
4. If it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Note: An entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘Startup’.
What are the Benefit under Startups India Scheme?
The benefits provided to recognized startups under the Startup India initiative are:
1. Self-Certification: Self-certify and comply under 3 Environmental & 6 Labour Laws
2. Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemption on capital and investments above Fair Market Value
3. Easy Winding of Company: In 90 days under Insolvency & Bankruptcy Code, 2016
4. Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in filing patents
5. Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover and experience requirements in government tenders.
6. SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds.