Recently Pm Modi had announced the scheme related to Startups and extended his support towards innovation, its a very good step considering in mind a lot of startups are emerging and they need some sort of support to survive. the StartUp India initiative includes benefits like tax exemption,funding,relaxation and support in registration of intellectual property.
THE SCHEME-WHAT YOU HAVE TO DO
The number one thing you must do is to apply for recognition as a startup, for this first thing first is that you must be registered as a partnership,company(Click link for company registration process), or a LLP. In order to get recognized as a startup you must get Recommendation (with regard to innovation nature of business), in a format specified by Department of Industrial Policy and Promotion, from any incubator established in post-graduate college in India; or Letter of support by any Incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation; or Recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India; or Letter of funding of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or Letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or Patent filed and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted.
KEEP IN MIND
You must qualify for the definition Startup as per the government of India Notification to get the benefits under the scheme. That means you must be qualified as under The Startup must possess-:
a) Up to five years from the date of its incorporation/registration,
b) If its turnover for any of the financial years has not exceeded Rupees 25 crore, and
c) It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;
If you are qualified as a startup and got any of the 6 documents mentioned above then you have to apply and complete the documentation. Once this done, the Department of Industrial Policy and Promotion will issue recognition number and the startup will be recognized Startup. Then the funding process will be initiate which will be discussed in next part.
By- Advocate Nitish Banka
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