India Lays an Action Plan to Promote Start-up Ecosystem
India launched the ambitious “Stand up India, Start-up India” campaign in a high profile event in New Delhi last month. The event saw a series of announcements to encourage budding entrepreneurs to start their ventures in India. The campaign is also seen as a step to infuse confidence among investors to invest in Indian ventures to create jobs and growth.
Few key takeaways from the start-up India campaign:
- $1.5 billion to fund start-ups
The government will set up a dedicated amount of $1.5 billion over the next four years to fund start-ups. Manufacturing, agriculture, health and education sectors will get priority in this.
- Tax Exemption for three years
Start-ups will get an exemption from income tax for the first three years. And, no tax on capital gains that’s invested on Securities and Exchange Board of India (SEBI) registered ventures.
- Self-certification to reduce regulatory burden
The government will allow start-ups for self-certification on labor laws compliance. And, there will be no inspection for the first three years.
- Creation of start-up hub
Start-up hub will act as a single point of contact to interact with the Government. It would also support start-ups in getting loans and finance, and in organizing programs for knowledge sharing.
- Faster patent filing
Reduction of patent fees by 80% and faster mechanism for filing patents for start-ups. This is to create and protect Intellectual Property (IP) rights for the start-ups.
- Faster exits
The government has introduced a new bill where start-ups can exit within 90 days of filing the application.
- Student entrepreneurs
The government will introduce an innovation program in half a million schools in India to fetch new ideas from students all over the country. Out of this, 100 ideas will get selected and showcased in the Annual Start-up Festival organized at the President’s House.
What is the registration process?
The government will launch a mobile app and a Web portal by April 1, 2016. This will simplify the company registration process and will even enable start-ups to register companies in 24 hours.
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