How Does Indian Government Support Start-ups?
“Entrepreneurship will no longer being condemned as Jugaad.”
The above statement was being asserted at the launch of Indian startup Action Plan hosted by Mr. Narendra Modi on January 16, 2016. In the past few years, Indian government has introduced a wide spectrum of Startup schemes and funds to encourage young innovative brains and growth of startups in India.
There has been rapid increase in number of startups in the country. Close of 4,400+ startups prevail today and the number is expected to increase over 12, 000 by 2020. India stands at the third position behind US and Britain in terms of startups businesses.
Startups such as Ola, Flipkart, Zomato, Quikr, Jabong, and Snapdeal are very well-known and established in India today.
Government of India has recently made tax exemptions available for start-ups
until March, 2019provided they get a certification from Inter-Ministerial Board (IMB). We can clearly see Governments encouragement for start-ups here.
Henceforth, enjoy this amazing three tax free years!
Easy Entry and exit
Indian Government has now introduced a website and a new mobile application for easy registration. Thus, anyone can simply now fill the form online and upload certain documents for existence of their new venture. So, now why to waste your time in a long queue, go online!
The brutal truth about start-ups is its failure rate. It has been proved that 90% of start-ups fail. Keeping this in mind, Government of India encourages the creative minds and has cleared the exiting path for start-up companies i.e. A start-up can shut down its venture within 90days from the date of application of winding up.
Start-up companies can now get their patents grant within two and half years under immediate action instead of the previous five to seven years. It has been further proposed to revise to reduce to one and half years by 2018.
Hmm… we are expecting some good years ahead!!!
Fund of Funds
Government has set up fund of Rs. 10,000 crores for provision to start-ups as venture capital. It is also driving Banks and other financial institutes to encourage start-ups by providing them with venture capital.
Government of India is taking an initiative to host at least 2 start-ups Events both nationally and internationally and provide a wide exposure to their start-up citizens to network and collaborate for establishment of their businesses. Therefore, Government is building a bride for their start-up community as it knows, that ‘Networking is an essential part of building wealth.’