START-UP INDIA –A GOVERNMENT INITIATIVE

Start-up India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start-ups with jobs creation. The campaign was first announced by Prime Minister Narendra Modi on 15th August 2015. It is focused on to restrict hindrances like land permissions, foreign investment proposal, environmental clearances etc. which are the major problems faced by people while starting a venture. Start-up India was organized by Department of Industrial Policy and Promotion According to the campaign a start-up is an entity that is headquartered in India, was started less than five years ago and has an annual turnover less than ₹25 crore. Further On January 16, Prime Minister Narendra Modi unveiled a 16-point action plan for start-up enterprises in India. He also announced a self-certification scheme related to nine labour and environment laws. He also said that there would be no inspection of the enterprises during the first three years of the operation. The main focus of the campaign is to provide the following facilities for the growth of start-ups:

  1. Self-certification: The start-ups will adopt self-certification to reduce the regulatory liabilities. The self-certification will apply to laws including payment of gratuity, labour contract, provident fund management, water and air pollution acts.
  2. Start-up India hub: An all-India hub will be created as a single contact point for start-up foundations in India, which will help the entrepreneurs to exchange knowledge and access financial aid.
  3. Register through app: An online portal, in the shape of a mobile application, will be launched to help start-up founders to easily register. The app is scheduled to be launched on April 1.
  4. Patent protection: A fast-track system for patent examination at lower costs is being conceptualised by the central government. The system will promote awareness and adoption of the Intellectual Property Rights (IPRs) by the start-up foundations.
  5. Rs. 10,000 crore fund: The government will develop a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years, to support upcoming start-up enterprises.
  6. National Credit Guarantee Trust Company: A National Credit Guarantee Trust Company (NCGTC) is being conceptualised with a budget of Rs 500 crore per year for the next four years to support the flow of funds to start-ups.
  7. No Capital Gains Tax: At present, investments by venture capital funds are exempt from the Capital Gains Tax. The same policy is being implemented on primary-level investments in start-ups.
  8. No Income Tax for three years: Start-ups would not pay Income Tax for three years. This policy would revolutionise the pace with which start-ups would grow in the future.
  9. Tax exemption for investments of higher value: In case of an investment of higher value than the market price, it will be exempt from paying tax
  10. Building entrepreneurs: Innovation-related study plans for students in over 5 lakh schools. Besides, there will also be an annual incubator grand challenge to develop world class incubators.
  11. Atal Innovation Mission: The Atal Innovation Mission will be launched to boost innovation and encourage talented youths. The government will introduce innovation-related programmes for students in over 5 lakh schools.
  12. Setting up incubators: A private-public partnership model is being considered for 35 new incubators and 31 innovation centres at national institutes.
  13. Legal support: A panel of facilitators will provide legal support and assistance in submitting patent applications and other official documents.
  14. Rebate: A rebate amount of 80 percent of the total value will be provided to the entrepreneurs on filing patent applications.
  15. Easy rules: Norms of public procurement and rules of trading have been simplified for the start-ups.
  16. Faster exit: If a start-up fails, the government will also assist the entrepreneurs to find suitable solutions for their problems. If they fail again, the government will provide an easy way out.

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