Startup India is a key initiative of the Government of India to create a dynamic startup ecosystem in India, driving financial growth and large-scale career opportunities. The Startup India activity was reported at the Red Fort on the occasion of India’s 69th Independence Day. The Startup India Mission was announced on January 16, 2016, when Prime Minister Shri Narendra Modi unveiled the Startup India Action Plan. In this article, we take a look at the highlights of the Startup India Action Plan 2021. You can also download a PDF version of the Startup India Action Plan 2021.
- Simplification and Handholding.
- Funding Support and Incentives.
- Industry-Academia Partnership and Incubation.
Is a private limited company or registered as a partnership firm or a limited liability partnership? Has an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.
Tax Exemption to Startups for 3 Years:
To empower the improvement of Startups in India and provide them with a competitive edge, the benefits of Startup activities should be exempt from income tax for three years.
Compliance based on Self-Certification:
If there should arise an occurrence of work-related laws, no investigation will be conducted for 3 years. If there were an occurrence of environmental regulations, Starturegulations, which fall under the ‘white classification’, would be able to self-confirm, and only routine inspections would be required.
Markdown on Patent Fee and Fast-Track Patent Examination:
Intellectual Property Registration awareness is rising in India. The Startup India Action Plan 2016 is expected to provide a significant boost to intellectual property registration. Startups, in particular, must protect their intellectual property rights, as they operate with limited resources and can only survive against competitors by effectively safeguarding their intellectual property. This is the key to a startup’s success, particularly 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 recognized by the Government.
Faster Exit for Startups:
Startups are high-risk ventures, and a significant percentage of them 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.
