Startup is the talk of the town right now as you can see them all over the place. The era of age-old businesses has been replaced by the new, cutting-edge businesses which are started by non-traditional businessmen of the country. Now the marketplace is not run by the people who have been running traditional family businesses since ages, but instead, new ideas are turning into tangible businesses providing a huge bump to the economy, creating employment opportunities and most importantly, keeping the domestic talent within the countries. The culture of ventures has set-up a new trend which has attracted a number of people, especially the young crowd of the nation. When the going gets tough, the tough get innovating is the attitude which is visible in today’s youngsters. A majority of start-ups are incepted during the college period. The gusto of doing something extraordinary and the passion for their ideas is what keeps the modern youth focused on their innovations.
The government of the country completely understands and supports the idea of start-ups. The major reason behind this grant is the support it offers to the nation’s economy not just by generating business, but also opening new trading channels with the rest of the world. Hence, the Indian government has been offering financial aid to the nation’s entrepreneurs. While the government is pro-startups, it has some specific norms for your venture to be eligible to get the benefits of the schemes.
What are the conditions?
The startup has to be an entity which is incorporated in India in order to be eligible. It means that it should be registered under the Indian Law.
In order to get benefits of the scheme, the startup must not be older than 5 years. The term startup accomplishes that it is not an established corporation but something that has just floated in the market. New and innovative!
Financial aid is for kick-starting new ideas and not to provide the support to an already established business. Hence, it is a condition that the annual turnover should not exceed 25 crores.
Most importantly, the startup should be working towards innovation, development, technology-driven products and services and deployment of new products.
The entity should not have been formed by restructuring a business already in existence and must be a new establishment altogether
What is the Scheme?
On January 16, 2016, Indian PM Mr. Narendra Modi launched start-up India scheme that was specifically designed to cultivate new startups in the country. Realizing the benefits and impact successful startups can have on the nation’s status, the government offered few relaxations and schemes to the budding businesses. According to the scheme:
There won’t be any inspections during the first 3 years of the startup
Government will provide dedicated web portal and application
A reduction of 80% in the application fees for the patent registration
The startups will have an easy exit policy along with credit guarantee fund
Income tax relaxed for 1st three years
Female entrepreneurs get special arrangement as a part of the scheme
Along with the technological developments and quality of innovation, new verticals are springing up every day. Owing to the businesses like E-commerce, internet marketing, digital development, etc. the horizons for economic & business development have expanded exponentially. In times like this, it is imperative that budding entrepreneurs should know how to leverage the government support. For more tips and information, stay tuned to Pick my story!
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