Startup India is a flagship initiative of the Government to provide a strong ecosystem for startups using innovative ideas and desgins. The action plan addressing all the issues regarding the Startup India initiative was issued on 16th January, 2016. Till now, 798 applications have been approved by the Department of Industrial Policy and promotion (DIPP) as Startups and 10 Startups have been approved for availing the tax benefits provided by the Startup initiative.
Some of the FAQ’s relating to the Startup India initiative are addressed below:
- Why register under the initiative?
- Tax exemptions on income tax for 3 years
- Tax exemptions on capital gains and on investments above fair market value
- No compliance under 9 environmental and labour laws only self-certification is required.
- While filing for Patent the process is made fast track and up to 80% rebate is provided in fee
- The company can be winded up within 90 days under Insolvency & Bankruptcy code 2016
- Public procurement is fast track in Central Government ministries / departments
- Funds have been established to fund the investments to be made in startups
2. Who can register under the initiative?
Private Limited company, registered partnership firm or Limited liability partnership
3. When to get registration?
Up to 5 years from the date of registration or incorporation
4. Turnover limit if any?
The turnover in any of the 5 years has not exceeded Rs. 25 Crores
5. When can the entity be called a startup under the initiative?
The entity should work towards innovation, development, deployment or commercialization of new product, processes or services driven by technology or intellectual property
6. Any other condition on the type of entity?
Entity should not have been formed by splitting up or reconstruction of a business already in existence.
7. When would the registration cease to exist?
As soon as the entity exceeds the turnover limit of Rs. 25 Crores in any previous year or 5 years have passed since registration / incorporation.