Updated: Jun 1, 2021
The Startup India Scheme was launched on 16th January 2016. It was launched by Arun Jaitley who was the former Finance Minister of India. This scheme comes under the Ministry of Commerce and Trade.
Startup India Scheme aims to increase employment and wealth by increasing startups in India. The objective of the scheme is to reduce the regulatory burden and paper works on the startups. Subsequently, it will be helpful for the Entrepreneurs to focus on their core business and in its development.
At earlier times, startups required lot of paper works and efforts. This led to the decline of startups in India. Therefore with the Startup India Scheme, registration and paper works became lot easier. The main objectives of the Startup India Scheme are:
Led to the discard of the policies like:
1) License raj
2) Land Permissions
3) Environmental clearances
4) Foreign Investment Proposals
All the operations of this scheme are organized by the Department for promotion of Industry and Internal trade (DPIIT).
Get recognized as a startup by the DPIIT
To get recognized as a startup by the DPIIT, registration is done through the official website of the scheme -https://www.startupindia.gov.in/
There are certain criteria to be fulfilled to get registered and avail the benefits from the Government.
Criteria to be fulfilled:
1) Company age: The age of the company should not exceed 10 years from the date of its formation.
2) Company Type: The Company should be registered as a Private Limited, a Registered Partnership Firm or a Limited Liability Partnership.
3) Turnover: The annual turnover of the company should not exceed Rs 100 crore in any of the financial year from the year of formation.
4) Original Entity: The Company should not be formed by splitting or reconstructing an existing firm or business.
5) Innovation and Scalability: The firm should work towards development and improvement. Also, it should have a high potential to create employment as well as wealth.
If the above conditions are matching with a newly formed business or firm, then it is qualified to earn the benefits and the tag of a startup.
Some of the benefits from the Startup India Scheme:
1) Reduction in the cost of patenting: Under this scheme, government bears 80% of the cost of patenting for a product by a startup. Also, the process will be very fast for them.
2) Income Tax Benefits: Startups don’t need to pay the income tax for a period of three years from the date of incorporation.
3) Easier Registration process: Under the Startup India Scheme, registration had become a lot easier. Also, startups can avail problem solving window.
India is a country full of young and vibrant people. Startups and businesses were a dream for every Indian. Now, with this Startup India Scheme, we can expect more businesses and reputed companies to emerge from the land of India. By providing innovation skills and developmental classes we can also emerge as a nation with innovation.
So, guys are you excited to start a startup and make it a great cherished business, them comment down! Let me know if there are Entrepreneurs here.
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