STARTUP INDIA INITIATIVE FOR YOUNG ENTREPRENEURS

What is a Startup India Plan?

On February 19, 2019, the Dept of Industry and Internal Trade released a notice outlining the description of a startup. As a consequence, a Startup has the legal status:

• after ten years from the date of incorporation or registration, and if its turnover in any of the previous fiscal years exceeds Rs. 100 crores.

Startup India – A Government Program

The Startup India Scheme is an intervention of the Indian government intended to create jobs and wealth. Start-up company India’s mission is to create and drive innovative products or services, as well as to boost India’s rate of employment. Work rationalisation, financial support, government concessions, and networking opportunities are among the benefits of the Startup India Scheme.

Action Plan 

The course of action of Startup India is characterized by the following:

1. Streamlined Work This initiative makes it easier for new competitors to compete in order to motivate them. This includes the government actions listed below:

• To start, the government has set up “ Make in India ” centres where all absorption, licencing, disciplinary procedures, and other tasks can be completed.
• Second, the government has developed an application and an online portal to enable registration from any location and at any time.
• Third, for startups, acquiring and registering patents is now a fast process.

2. Financial Assistance

To motivate entrepreneurs, the administration provides a variety of financial incentives. The administration has adopted the proper procedures:

• The government has launched a body of evidence of Rs.10,000 crores for a four-year period (Rs.2500 crore each year). To use this budget, the government to invest in a variety of startups.
• Startups are exempt from paying income taxes for the first three years after incorporation.
• If a Startup (company) obtains any recognition for the issue of shares that surpasses the Fair Market Value of the shares, the Enterprise (company) is subject to the Income Tax.
• This provision does not apply to startup investments made by venture capital funds. The same can be said for incubator investments.

Benefits of Startup India Scheme

The Startup India Scheme offers a slew of advantages to entrepreneurs. However, in order to receive of these benefits, an entity must be recognised as a startup by the DPIIT.

1. Three-Year Tax Exemption

Profits earned by recognised startups with an interministerial board certificate are exempt from income tax for three years in a row.

This type of exemption is granted to help businesses grow and to meet their working capital needs in the early years.

2. Startup Patent Application and Intellectual Property Rights Protection

Startup India offers high-quality intellectual property services and resources to assist startups in protecting and commercialising their intellectual property rights. This includes: expediting the processing of startup patent applications and offering an 80 per cent discount on patent filing fees when compared to other companies. In comparison to other companies, we offer a 50% discount on trademark filings. A panel of facilitators will assist in the filing of IP applications, and the government will bear the costs of the facilitation.

IPR Application

The goal is to reduce the cost and time required for a startup to obtain a patent, making it financially viable for them to protect their innovations while also encouraging them to innovate further.

• Startup Patent Applications Will Be Fast-Tracked – The applications will be expedited so that the value can be realised sooner.
• A panel of facilitators will help with intellectual property application filing – The facilitators will help with application filing.
• The government will bear the costs of facilitation – The Central State will pay the a whole facilitation fee for any patent application, copyrights, or design features that an Entrepreneur may file underneath this scheme, and the Startups will pay only the mandated fees amount due.
• Rebate on application filing – Startups will receive an 80% discount on patent filing fees when compared to other companies. This will assist them in cutting costs during the crucial formative years.

Features of the Scheme

The following characteristics distinguish the scheme:

• For three years, new entrants are exempt from paying taxes.
• The government has set up an Rs.2500 crore fund for startups, as well as a Rs.500 crore credit guarantee fund.

Register Your Company

As previously stated, registration on the startup portal is only available to the following companies:

• Limited Liability Partnership Firm 
• Private Limited Company 
• Partnership Firm
• Partnership Organization

The Partnership Firm Act regulates collaborative firm register. To form a partnership business, the stakeholders must draw up a collaboration deed highlighting the contract terms of the partnership firm. This joint venture agreement should be lodged with the firm’s registration. We can help you form a partnership firm.

• Limited Liability Partnership Organizations

A limited liability partnership firm must be registered under the LLP Act. A partnership and an LLP are indeed very equivalents, but the LLP has more in common with a private company, including liability protection, practicability, and so on.