The Start-Up India scheme, launched in 2016, is a flagship initiative aimed at fostering a vibrant startup ecosystem in the country. It envisions India as a hub of innovation, job creation, and economic growth fueled by entrepreneurial energy.
Key Pillars of the Start-Up India Scheme
- Simplification and Handholding: Easing regulatory processes, providing online registration, and offering guidance to startups in their early stages.
- Funding Support: Creation of a ‘Fund of Funds’, credit guarantees, and tax breaks to address funding challenges faced by startups.
- Incubation and Innovation: Establishment of incubators and tinkering labs in academic institutions, along with research parks and sector-specific incubators.
Defining a ‘Startup’ under the Scheme
The scheme recognizes a startup as an entity:
- Incorporated as a company, partnership, or LLP
- Not more than 10 years old
- Annual turnover of less than ₹100 crore
- Working on innovation, product development, or service improvement
Benefits Offered by Start-Up India
- Tax Exemptions: Eligible startups enjoy income tax exemptions for three consecutive years and exemptions on capital gains investments.
- Intellectual Property Protection: Startups receive expedited patent filing, fee reductions, and access to IP facilitators.
- Public Procurement Norms: Relaxations in government procurement norms allow startups a level playing field.
- Self-Certification: Startups can self-certify compliance with labor and environmental laws to reduce regulatory burdens.
Success Stories under Start-Up India
- The Unicorn Boom: India has seen a significant rise in unicorns (startups valued over $1 billion), with many benefiting from the Start-Up India initiative.
- Innovation in Tier-2/3 Cities: The scheme has encouraged entrepreneurship beyond major metros, creating opportunities across the country.
FAQs About Start-Up India
- How can I register under the Start-Up India Scheme? Startups can register through the official Start-Up India portal (www.startupindia.gov.in).
- What are the eligibility criteria? The entity must meet the startup definition as laid out by the scheme.
MCQs
The primary purpose of Start-Up India is:
A. To build modern infrastructure
B. Eradicate poverty
C. Promote entrepreneurship and innovation
D. Train farmers
Which of these is NOT a direct benefit of Start-Up India?
A. Easier patent filing
B. Tax exemptions
C. Free office space for all startups
D. Access to incubation centers