PM Modi’s Startup India Plan: 3 Years Tax Holiday and Rs. 10,000 Crore Fund for Startups

The Logical Indian

January 17th, 2016 / 12:15 PM

Image Source: newindianexpress

Prime Minister Narendra Modi on Saturday unveiled the ambitious ‘Startup India’ initiative to boost startup businesses and digital entrepreneurship in India. He announced the salient features of the plan at the Vigyan Bhawan auditorium, New Delhi.

A few significant features of the plan are as follows:

Tax Exemption for Startups: Profit of startups set up after 1st April, 2016 will be exempted from income tax for a period of three years. Investment of one’s own wealth will also be exempted from Capital Gains tax.

Fund for Startups: The Government will set up a fund with a corpus of Rs. 2500 crore to support growth of startups. The fund will have a total corpus of Rs 10,000 crore over four years.

Self-certification based compliance: Startups will be allowed to self-certify compliance with labour and environmental laws. There will be no inspection during the first three years of launch of a venture.

Startup India Hub: A single point of contact for interactions with the government.

■ Mobile App: A mobile app will be launched on 1st April to simplify the process of registration. It will contain a small application form which can be filled up for registering a startup in one day.

■ Faster Patents: Filing patents and intellectual property claims takes months. This process will be simplified through a fast-track mechanism for startups. Patent fee will be reduced by 80% and cost of legal facilitators for startups will be borne by the government.

Easier Exits: The government is trying to make faster exits for startups in case of failure. A bill will be introduced in the Parliament to facilitate exits in 90 days.

Relaxed Norms for Public Procurement: Startups will be exempted from the criteria of prior experience in order to help them compete with experienced companies in public procurement. Quality, however, will not be compromised.

Credit Guarantee: A credit guarantee scheme of Rs. 500 crore per year will be launched to patronize entrepreneurship for the next four years.

 Atal Innovation Mission: The mission aims at promoting research and development. It includes 500 tinkering labs, 35 public-private sector incubators, 31 innovation centres at national institutes, 7 new research parks, 5 new bio-clusters.

Women Participation: The government will try to increase participation of women in startups.

Innovation Programmes: Core innovation programmes will be organized in 5 lakh schools to encourage innovation. Startup festivals will be organized to increase visibility.

The Logical Indian appreciates the govt. for taking the initiative and hopes that this brings fruitful result in the future for India and help start-up to grow in a faster rate providing employment to youth and building a great nation.


Contributors

Edited by :

Share your thoughts..

Related Stories

Fact Check: WB Govt Didn’t Issue A 5-Day-Long Eid Holiday; Kolkata Police Begins Probe

manual scavenging

Kerala Startup Firm Develops Robot To Replace Manual Scavengers, Solution To End The Abominable Practice

An Unique Initiative: This Startup Trains Crows To Pick Up Cigarette Butts In Order To Fight Pollution

Google India Tax

Google India Evaded Tax On Rs 1457 Crore, The Income Tax Tribunal Says

Rohtak School Forced To Declare Holiday After School Buses Were Used For Amit Shah’s Rally

The Startup Boom Is Over: Startups Are Dying Around The World – Including India

Latest on The Logical Indian

Fact Check

Fact Check: From Kanhaiya Kumar Embracing Islam To “Photo” Of Tipu Sultan

Awareness

Polio Vaccine Price Hiked; Govt Seeks Rs 100 Crore From A Foreign Donor

News

89 Fake Websites/Apps Spreading Misinformation On ‘Ayushman Bharat’, FIR Registered

Awareness

To Reduce Stubble Burning, IKEA Decides To Convert Rice Straw Into Household Wares

News

Pune: Man Duped Of Rs 93 Lakh After Sharing SIM Details With ‘Airtel Employee’ Over Phone

News

Andhra Pradesh Bars Entry Of CBI In State, Cites ‘Ongoing Battle’ Within CBI As Reason

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.