Innovation and new ideas go a long way in helping a nation achieve prosperity and fully develop itself. For a long time now, India has been an ‘outsourcing’ hub for multinational companies that made huge revenues by extracting cheap labour from India. On the other hand, India was comparatively slow in starting companies of its own.

The lack of indigenous companies was acting as a hindrance in the growth path, and Foreign Direct Investment was also not as much before 2016. In 2016, India had approximately 4,750 startups functioning. However, there was a paradigm shift in these numbers after the flagging of the Startup India initiative. Let us look at more details of this govt scheme.

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What Is The Startup India Initiative?

The Startup India initiative was launched on January 16, 2016, by Prime Minister Narendra Modi. This govt scheme was flagged off to promote and nurture innovation in the country. The youth will be assisted in turning their valuable ideas into companies and organisations.

The Sarkari Yojana is administered by the Department of Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry. The scheme aims to empower startups, boost entrepreneurship and increase economic growth in the country. This startup scheme mainly provides financial assistance to new startups in India and helps them grow.

The major motto of the Startup India scheme is to create employment in the country. It wishes to transform India from a country of job seekers to that of job creators. It works in furtherance of the ‘Aatmanirbhar Bharat’ Abhiyaan.

What Are The Key Initiatives That Have Been Taken Under The Startup India Initiative?

The government and the Department of Promotion of Industry and Internal Trade have started various ventures and initiatives to generate awareness amongst the masses about this startup scheme. Many more initiatives have been taken under the scheme. Let us have a glance at them!

• States Startup Ranking: The states in the country are ranked based on the number of startups and the success of these startups. Such startups are supplied with multiple financial, advisory and other benefits to help them grow. In the last edition of the rankings, Gujarat was the best performer.

• National Startup Awards: As a measure of motivation, the government has also started the national startup awards which reward and acknowledge budding successful startups.

• Seed Fund Scheme: Under the seed fund scheme, the government provides financial assistance for the development of prototypes and entering into the market. It helps founders in funding their startup and introducing it in the market.

• MAARG (Mentorship, Advisory, Assistance, Resilience and Growth): MAARG is a platform that is aimed at providing mentorship and advice to budding entrepreneurs to help them take their organisations to new heights.

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What Are The Benefits Of The Startup India Scheme?

The Startup India scheme has multiple benefits for entrepreneurs and startups. Let us have a look at them!

• Tax Benefits: No tax to be paid for the first 3 years of operation of the Startup. These organisations also don’t have to pay capital gains tax for the initial 3 years of operation.

• IPR Protection: The government is working on formulating better intellectual property rights laws and rules to extend better industry practices and security to startups.

• Insolvency and Bankruptcy Code: The Code is comparatively lenient towards startups for the winding up and closing down process.

• Job Creation: With the beginning of startups in India, the employment sector will boom with jobs. India will be able to realise its dream of being a job creator.

• Startup Pool: The government scheme has a funding pool of Rs. 10,000 Crores to extend financial assistance to startups.

What Is The Eligibility Criteria For The Startup India Scheme?

The eligibility criteria for a company to avail of the benefits of the Startup India scheme are given below:

• The period for which the company has been operating and in existence must not be over 10 years.

• The company should be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP).

• The annual turnover must not exceed Rs. 100 Crore for any year since its inception.

• The startup should have a scalable business model and work towards developing or improving a product, process, or service.

How To Apply For The Startup India Scheme: A Step By Step Guide

The procedure to apply for a Startup India scheme and avail of its benefits is below:

• Visit the official Startup India website.

• Fill out the application forms with all the necessary details.

• Apply to obtain recognition by DPIIT after meeting the eligibility conditions.

• Upload the required documents along with your application.

• After approval, you shall receive a recognition number from DPIIT.

Conclusion

The Startup India scheme has been a breakthrough in India’s journey towards a self-reliant nation. After only 2 years of starting the scheme, the number of startups in India in 2018 crossed 50,000. This was more than 10 times the number of startups in 2016. The success of this govt scheme has indeed brought in various opportunities for India. Let us strive for this scheme to be more successful.

For more information or any queries, contact the Startup India helpline at 1800 115 565 and stay tuned to Jaagruk Bharat for more information about government schemes for business.