Incentives for Startups from Government of India

Startups in India are becoming very popular. The government has initiated and extended support to Startup India. Many advantages are given to entrepreneurs who set up start-ups to foster growth and support the Indian economy.Let us look at those benefits.

1.     Reduction of Cost:

The government offers lists of patent and trademark facilitators. Including a quick review of patents at lower fees, they can provide high-quality intellectual property rights services. All facilitator fees will be charged by the government and the start-up will only pay the statutory fees. They will experience an 80% reduction in patent filing costs.

2.     Simplification of Process:

A mobile app and website for easy registration for start-ups have been launched by the Government of India. You can fill out a simple form on the website and submit those documents to anyone interested in setting up a start-up.The whole process is online.

3.     Tax Exemption for 3 Years:

Start-ups would be exempted from income tax for 3 years if they receive

Inter-Ministerial Board certification (IMB).

4.     Smooth Access to Funds:

The government is setting up a 10,000 crore rupee fund to provide             

entrepreneurs with funds as venture capital. The government is also offering lenders guarantees to promote the provision of venture capital by banks

and other financial institutions.

5.     Facilities for Research & development:

Seven new research parks will be set up to provide start-ups in the Research & Development sector with facilities.

6.     Provision for Application of Government Tenders:

Startups may apply for tenders to the government. They are removed from the requirements for "prior experience/turnover" common to ordinary companies responding to government tenders.

7.     Tax Exemptions for Investors:

People who invest their capital gains in government-established venture funds would be exempted from capital gains. This will help entrepreneurs acquire more investors.

8.     Simplified Compliances:

To save time and resources, numerous enforcement agreements

have been streamlined for startups. Startups are authorised to self-certify

compliance with 9 labour and 3 environmental laws.

9.    Exit Made Easy:

 A start-up can close its company within 90 days from the date of

application of the wind-up in the event of an exit.

10.   Flexibility to Choose Investor:

The start-ups would have a choice to choose between the VCs after this

The venture, allowing them the ability to choose their investors.

11.   Contacts With Other Entrepreneurs:

To encourage the different stakeholders of a startup to meet, the

government has proposed to host 2 startup fests annually both nationally and

internationally. This will offer significant networking opportunities.

Startups are being actively supported by the administration. The advantages they reap are tremendous, which is why more individuals are opting for start-ups. EII Global will support you on your way if you are one of them, to help you launch your company. For more information, please visit our website.