STARTUP INDIA
An entity shall be considered as a Startup
- Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
- Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
- Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
Website :
Government Schemes :
Benefits of Startup
- Self Certification under Labour& Environmental Laws
- Section 80 IAC: Income Tax exemption for 3 out of 10 years
- Tax Exemption on Investment Above Fair Market Value
- Faster exit for Startups
- Intellectual Property Rights (IPR) benefits
- Relaxation in public procurements norms
- Fund of Funds for Startups (FFS)
Benefits of Startup India Scheme
Self Certification under Labour and Environmental Laws
Startups are allowed toself certify their compliance under six labour laws and three environment laws. This is allowed for a period of five years from the date of incorporation of the entity. Such a benefit is given in order to reduce the regulatory burden for startups so that they can focus on their core business and keep compliance costs low.
Tax Exemption for Three Years
The profits earned by the recognized startups having granted inter ministerial board certificate are exempted from income tax for three consecutive years.
Tax Exemption on Investment Above Fair Market Value
In case a startup has inter – ministerial board certificate and receives consideration from the issue of shares exceeding the face value of such shares then the consideration upto Rs. 10 crores received from such shares exceeding the fair market value of such shares is exempted from tax.
Easy Winding Up of Company
Startups also known as fast track firms can be wound up within 90 days as against 180 days for other companies.
Startup Patent Application and IPR Protection
Startup India provides high quality intellectual property services and resources to help startups protect and commercialize their IPRs. This includes: fast tracking of startup patent application,providing 80% rebate in filing of patents as compared to other companies providing 50% rebate in filing of trademarks as compared to other companies panel of facilitators to help in filing of IP applications and government support to bear facilitation costs
Relaxation in Public Procurement Norms
In order to meet quality and technical specifications all government of India departments, ministries and PSUs have been given authority to ease the norms with regards to public procurements. Thus, a startup can avail exemptions on earnest money deposit prior turnover and experience requirements in case of government tenders . Further, startups can now get listed as sellers on Indian Government’s largest e-Procurement portal that is Government– Marketplace (GeM)
SIDBI Fund of Funds
The government of India has set aside a corpus fund of Rs. 10,000 crore. This fund is managed by SIDBI and is intended to provide equity funding support for the development and growth of innovation driven enterprises. We at Consult ca provide consultancy services for Startups to establish and scale up their businesses.
