Start-up India

Submitted By : Group-4

The Announcements-Ease of doing business

Introduction of compliance regime based on self-

certification

• As far as labour laws are concerned, no inspection would be conducted for a period of three years. In case of environment laws, start-ups under ‘white’ category would be able to self-certify compliance.

Start-up patent applications

• Applications fast tracked for examination and disposal• Start-ups to be given 80 percent rebate in filing patents to help them lower costs of

setting up business• Government appointed facilitators shall help start-ups in filing and disposal of patent

applications. Government will bear costs

Faster exits for start-ups• Provisions for fast-tracking closure of businesses have been included in ‘The insolvency

and Bankruptcy Bill, 2015’. Start-ups, who have simple debt structures, can be allowed to wind up within a period of 90 days after filing an application

Tax exemptions

• Tax on long-term capital gains in unlisted entities would be cut from present rate up to 20 percent

• Start-ups set up after April 1, 2016, shall be exempted from income-tax for a period of three years

• Exemption would be available to venture capital funds to invest in start-ups above fair market value (FMV)

Starting a start-up in a day  through mobile app

• Window for information exchange and interacting with government and regulatory bodies• Start a new company in a single day as all paperwork would be filed through the mobile

app and portal• Norms of public procurement for start-ups to be relaxed. PSU would give start-ups

preference

The Announcements-Promoting Start-Ups

Start-up India Hub • An entire start-up ecosystem that would be a set-up and a friend, mentor and guide for start-ups through their entire journey

Research Parks • Seven new research parks with an initial investment of Rs 100 crore each would be set up

35 new incubators in institutions

• A maximum of Rs 10 crore financial support to be given by central government to new incubators

Atal Innovation Mission– Entrepreneurship

promotion

• Sector-specific incubators to be established• 500 tinkering labs with 3D printers in universities• Pre-incubation training to potential entrepreneurs• Strengthening of the existing incubation facilities• Seed funding to high growth start-ups

Innovation promotion

• Institution of innovation awards: 3 per state/UT and 3 national level• Providing support to State Innovation councils for awareness creation and organising state-level workshops/conferences

• Launch of Grand Innovation Challenge Awards for finding low-cost solution to intractable problems

The Announcements-Funding Start-Ups

Credit guarantee fund for start-ups• A credit guarantee mechanism through National Credit Guarantee Trust

Company and SIDBI to be rolled out with a budgetary corpus of Rs 500 crore per year for the next four years

Funding support through fund of funds with a corpus of Rs 10,000 crore• The government to set up a fund with an initial corpus of Rs 2500 crore and

a total corpus of Rs 10000 crore over a period of four years

Conclusion

Over the past few years, the startup ecosystem has witnessed exponential growth within the country.

With PM Narendra Modi’s direct involvement in promoting startups with ‘Start-up India Stand up India’ initiative, we can expect a positive impact on the ecosystem as well as the economy.

While effective execution of the action plan is still a concern, the government needs to play a pivotal role in various dimensions of the startup ecosystem, and the main focus should revolve around the 3P’s (Promotion, Policy and Pravasi Indians (NRI)).

Secondly, creating startup friendly policies, which will nurture their growth by preventing hurdles like red tapism etc.