In India, startups are growing in popularity. Under Prime Minister Narendra Modi’s direction, the government launched and supported Startup India. The Startup India project aims to create a robust environment that is supportive of the development of entrepreneurs. It strives to provide startups with the tools they need to use innovation and technology to grow.
Following are the benefits given to a startup by the Government of India:
1. Simple process
In order to make it simple for entrepreneurs to register, the Indian government has released a mobile app and website. Anyone interested in starting a business can fill out a short online form and provide the necessary paperwork. Everything about the process is done online.
2. Reduction in cost
The government offers a list of trademark and patent facilitators. They will offer affordable, high-quality intellectual property rights services, such as quick patent examination. Only the statutory fees will be paid by the startup; all facilitator fees will be covered by the government. They will benefit from a cost reduction of 80% on patent applications.
3. Easy access to Funds
The government established a fund worth 10,000 crore rupees to give money to entrepreneurs as venture capital. In order to encourage banks and other financial institutions to offer venture capital, the government is also providing guarantees to lenders.
4.Tax holiday for 3 Years
If startups obtain accreditation from the Inter-Ministerial Board, they will be exempt from income tax for three years (IMB).
5. Apply for tenders
Applicants seeking government contracts can be startups. They are not subject to the “previous experience/turnover” requirements that apply to regular businesses that respond to government tenders.
6. R & D facilities
In order to provide facilities to startups in the R&D sector, seven new research parks will be created.
7. No time-consuming compliances
For entrepreneurs, certain regulations have been streamlined to save time and money. Startups are allowed to use the Startup mobile app to self-certify compliance.
8.Tax saving for investors
People who invest their capital gains in government-established venture funds are exempt from paying capital gains tax. This will encourage investors to invest in startups.
9. Choose your investor
After implementing this strategy, companies will have the freedom to select their investors from among the VCs.
10. Easy exit
In the event of an exit, a startup may close its doors 90 days after filing for winding up.
11. Meet other entrepreneurs
To allow the numerous stakeholders of a company to interact, the government has proposed holding two startup fests annually on both a national and international level. Significant networking opportunities will result from this.
Numerous perks are offered to business owners launching startups in order to encourage growth and support the Indian economy. The Startup India initiative offers plenty of perks to startups that wish to launch their own companies in India as mentioned above. Startups are being highly encouraged by the government. The benefits enjoyed by them are immense, which is why more people are setting up startups.