Prime Minister Narendra Modi on Saturday, 16th January, 2016 launched the ambitious ‘Startup India’ campaign to boost digital entrepreneurship. Prime Minister Narendra Modi’s historic Startup Action Plan, released on Saturday, has the whole nation throbbing.
Addressing the first conference of start-up entrepreneurs, Modi announced an action plan to boost such ventures which are seen as key to employment generation and wealth creation. He also announced that a dedicated fund with Rs 10,000-crore corpus will be created for funding of start-ups.
Here are the top points to action plan for start – up India campaign:
- Compliance regime based on self-certification – To reduce regulatory burden, startups shall be allowed to self-certify compliance with labour and environment laws.
- Startup India hub – Will be single-point of contact and hand-holding.
- Simplifying the startup process – A startup will be able to set up by just filling up a short form through a mobile app and online portal that will be launched in April.
- Patent protection – PM Modi said patent protection and IP rights are a major concern for Indian startups.
- Panel of facilitators to provide legal support and assist in filing of patent application – Facilitators shall provide assistance for startups in filing and disposal of patent applications related to patents, trademarks and design under relevant Acts.
- 80% rebate on filing patent applications by startups – To enable startups to reduce costs in their crucial formative years, startups shall be provided an 80% rebate in filing patents vis-a-vis other companies.
- Relaxed norms of public procurement for startups – to provide an equal platform to startups vis-a-vis the experienced startups/companies in public procurement, startups shall be exempted from the criteria of prior.
- Faster exits for startups – To make it easier for startups to exit, provision for fast-tracking closure of businesses have been included in ‘The insolvency and Bankrupcy Bill 2016’.
- Funds of funds with a corpus of Rs 10,000 crore – To provide funding support for development and growth of innovation driven enterprises, Government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over a period of 4 years.
- Exemption from Capital Gains Tax – Exemptions shall be given in case capital gains are invested in the fund of funds recognised by the government.
- Tax exemption for startups – To promote growth of startups, profit of startups, set up after April 1, 2016, shall be exempted from income-tax for a period of three years.
- Tax exemption on investments above Fair Market Value – In line with the exemption available to venture capital funds to invest in startups above fair market value (FMV), investments made by incubators above FMV shall also be exempted.
- Startup fests – For showcasing innovation and providing a collaboration platform
- Setting up of 7 new research parks modeled on the research park at IIT Madras – Government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each.
- Promote entrepreneurship in biotechnology – Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.
- Innovation focused programmes for students – Innovation core program shall be initiated to target school kids with an outreach to 10 lakh innovations from five lakh schools.
It was on the occasion of India’s 69th Independence Day that Prime Minister Narendra Modi announced the Startup India initiative from the ramparts of India’s iconic Red Fort. Among the issues the prime minister is expected to address are delays in incorporating and shutting down a firm, Liberalisation of labour laws and easing flow of early-stage capital.
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