START UP SCHEME OF GOVT. OF INDIA-SOME IMPORTANT CRITERION
BY: CA RAJENDRA KHANDELWAL, INDORE
Hon’ble Prime Minister of India Shri Narendra Modi had opened up Pandora’s Box for New and Innovative ventures in India. Following are the Eligibility Criterion for qualification for the benefit of Start Up Scheme :-
A. SATISFY ALL THE FOLLOWING 5 BASIC CONDITIONS :-
1. Your organisation structure should be either Private Limited Company, Limited Liability Partnership or Partnership Firm , and
2. Your organisation should not be older than 5 years, and
3. Turnover of your organisation should be less than Rs. 25 Crores, and
4. Your organisation should develop INNOVATIVE product which should add to the value of Customers and should be of commercial use, and
5. Your organisation has either applied or got approval from DIPP (Department of Industrial Policy and Promotion) that the organisation has INNOVATIVE PRODUCT.
B. FROM BELOW 5 CONDITIONS SATISFY AT LEAST ONE CONDITION :
1. You should get validated/recommendation letter from Incubator in Post Graduate Indian College, or
2. You should get validated/recommendation letter by Incubator funded by Government of India, or
3. You should get validated/recommendation letter by Incubator Recognised by Government of India, or
4. You should be funded by any Incubation Fund/ Angel Fund/ PE Fund/Accelerator/Angel Network, or
5. You should have Patent granted by Patent and Trademark Office related to the Business.
BENEFITS TO START UPS :
1. Initial 3 Years Income Tax Exemption.
2. Rebate of 80% in Filing Patents (for pilot basis for one year with extendable clause).
3. Fast Track Patent application processing.
4. Availability of Facilitators who would help filing Patents, Trademark etc.
5. In case of Labour Laws :- No Inspection for initial 3 years.
6. In case of Environment Laws :- Startup falling in WHITE CATEGORY would be able to self certify and only random checks would be carried out.
7. CAPITAL GAN TAX EXEMPTION :- If they have invested such capital gain in Funds of Funds Recognised by the Govt.
8. Criterion for Prior Experience /Turnover criterion done away in Govt. Tendering and Public Procurement.
THINK SMART, GO SMART AND AVAIL START UP BENEFITS, GOOD LUCK