1) Fund of Rs 10,000 crore for startups
In the inauguration ceremony of the Start-up India Action Plan, the Prime Minister also announced a fund of Rs 10,000 crore for new entrepreneurs. To support the startup, the government will create an initial fund of Rs 2,500 crore which will have a total fund of Rs 10,000 crore during the next four years. This fund will be managed by private sector professionals while the Jeevan Insurance Corporation will be co-consultant in this fund.
2) All work now on a window
The central government will launch a mobile app and website on 1 April, which can be used by startups to register its company within a day. It will work as a single window for clearance, approvals and registration.
3) Self: Certification Scheme also announced
Modi also announced the self -certification scheme for compliance with nine labor and environmental laws. Apart from this, he announced the facility to exempt start-up from any investigation for three years.
4) Liberal patent system will also be brought
A liberal patent system will also be brought for these new enterprises that come with nervous enforcement thinking in the country. These enterprises will be given 80 percent discount in registration fee in patent registration. Patent applications will also be given legal support for testing at low cost. This will also make the start up awareness in the matter of intellectual property rights and they will be able to protect and commercialize their IPR.
5) Government will provide financial assistance to startups
Apart from this, the loan guarantee fund created for the start up will also flow with the banking system from the banking system. This fund will be able to provide guarantee in lieu of risk. It is proposed by the government to create a National Loan Guarantee Trust Company in which a budget allocation of Rs 500 crore will be made annually for the next four years.
6) Income tax exemption for startup for three years
The profits earned by the startup traders will be exempted from income tax for the first three years before the business starts. In order to promote financing in such enterprises, after investment made by entrepreneurs, selling their assets will also be exempted from the capital profit tax incurred at the rate of 20 percent. This exemption will also be available on the investment of the government -recognized enterprise capital treasures.
8) Startup Hub
Startup India Hub will serve a single window for all players of this ecosystem. The responsibility of this hub will be to promote start up financially and promote the knowledge exchange program.
9) Provision to give simple issue options to startups
Provision will also be made to give simple issue options to start up enterprises in the insolvency law. Under this, start up will be able to close their business within a period of 90 days.
10) Atal Innovation Mission to promote entrepreneurship and innovation
The Atal Innovation Mission will be introduced soon to promote innovation. Through this, new entrepreneurs will be trained. An annual prize will be announced to encourage entrepreneurs doing good work with it.
