Start-up India

Submitted By : Group-4

The Announcements-Ease of doing

business
Introduction of compliance
regime based on selfcertification

Start-up patent applications

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.
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 AnnouncementsPromoting Start-Ups

Start-up India Hub
Research Parks
35 new incubators in
institutions
Atal Innovation Mission
Entrepreneurship
promotion

Innovation promotion

An entire start-up ecosystem that would be a set-up and a friend,

mentor and guide for start-ups through their entire journey
Seven new research parks with an initial investment of Rs 100 crore
each would be set up
A maximum of Rs 10 crore financial support to be given by central
government to new incubators
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
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 Modis 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 3Ps (Promotion, Policy and Pravasi Indians (NRI)).
Secondly, creating startup friendly policies, which will nurture their growth by
preventing hurdles like red tapism etc.