An entity shall be considered as a Startup

Benefits of Startup

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.

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