Startup India is a lead activity of the Government of India to construct a dynamic startup eco-framework in India to drive financial development and huge scale vocation opportunities. The Startup India activity was reported at the Red Fort on the event of India’s 69th Independence Day. This was caught up by the Startup India Mission on January sixteenth, 2016 wherein Prime Minister Shri Narendra Modi discharged the Startup India Action Plan. In this article, we take a gander at the highlights of the Startup India Action Plan 2016. You can likewise download a PDF rendition of Startup India Action Plan 2016.
Tax Exemption to Startup for 3 Years:
With a perspective to empower the improvement of Startups in India and give them an aggressive stage, it is basic that the benefits of Startup activities are exempted from income tax for a period of 3 years.
Compliance based on Self-Certification:
If there should arise an occurrence of work laws, no investigation will be directed for a time of 3 years. If there should be an occurrence of environment laws, Startups falling under ‘white classification’ would have the capacity to self-confirm and just rand looks at would be conveyed.
Markdown on Patent Fee and Fast-Track Patent Examination:
Intellectual Property Registration awareness is rising in India and the Startup India Action Plan 2016 will provide a tremendous boost to intellectual property registration. Startup especially must protect their intellectual property rights, as they operate with limited resources and manpower and can only survive against bigger competitors by properly protecting their intellectual property rights. Also, the valuation of a startup significantly rises after it obtains patent registrations.
Tax Exemption on Capital Gains:
Exemption shall be given to persons who have capital gains during the year, if they have invested such capital gains in the Funds of Funds recognised by the Government.
Faster Exit for Startups:
Startups are high risk ventures and a significant percentage of Startups fail. In the event of business failure, Startups must be quickly able to reallocate capital and resources to more productive areas. This will help more Entrepreneurs take up business without the fear of failure.