Just days before India celebrates its 67th Republic day, Prime Minister Narendra Modi announced the Start-up India Stand Up India action plan! It was a huge announcement for people involved with start-ups and young entrepreneurs willing to take the leap.
Here are the key announcements made by PM Modi in the Start-Up India Action Plan.
- Register with your mobile phone!
A mobile app is to be launched on 1st April which will ease the registration process making it possible to register start-ups in one day which might have taken a longer time otherwise. It will allow the start-up to get down to business straightaway thus saving time, money and energy.
- Compliance regime based on self-certification – this is a good move considering it would allow the start-up to lay a strong foundation for its business without much disturbance from the government. A start-up will be allowed to self-certify compliance with labour and environment laws.
- Initial Tax exemptions-Since first few years is the most crucial period for any business, the profit earned by the start-up will be exempted from tax for the first three years which will also help in the growth of the start-up.
- Exemption from capital gains tax – Exemptions would be given from Capital gains tax if the capital gains are invested in a start-up. It would encourage the owners of the start-ups that have started making profit to take more risk and use their experience to multiply successful ventures.
- Patent fees slashed by 80% – It not only promotes innovation but also promises to protect the interests of the innovators who might not have been able to patent their inventions due to monetary constraints before.
- Credit guaranteed funds for start-ups-In order to provide funding support to start-ups, the government will set up a fund with an initial corpus of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore over four years.
- Bankruptcy Bill – It would allow the start-ups to wind up more easily and faster (90 days). To make it easier for start-ups to exit, provision for fast-tracking closure of businesses have been included in ‘The insolvency and Bankruptcy Bill 2015’.
- Programs for students focused on Innovation- Innovation core program to be initiated with expected reach of 5 lakh schools and 10 lakh students. A Grand Challenge Program under the National Initiative for Developing and Harnessing Innovations to support and award 10 lakhs to 20 student innovations from Innovation and Entrepreneurship Development Centres. Another program will earmark Rs. 250 crore per annum to foster high quality research among IIT students.
- Atal Innovation Mission (AIM)- It is solely for the promotion of research and development which includes establishment of 500 tinkering labs with 3D printers in universities, 35 public-private sector incubators, 31 innovation centres, 13 start-up centres and 18 technology business incubators to be set up at national institutes, 7 new research parks(6 in IITs and one in IISc based on the research park at IIT Madras). Also 5 new bio-clusters will be established to promote entrepreneurship in biotechnology.
- A Start-up India hub – A single point of contact for interactions with the government. It will also allow easier access to government related schemes and benefits.
Being a start-up ourselves, we at Lock Your Stay look forward to the execution of the plan which looks perfect to make the Start-ups in India, Stand Up!