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Start-up India Scheme, Initiative, Launch Date and Registration

Start-up India Scheme: The Start-up India scheme is a government initiative that poses an opportunity to start a business in order to generate employment and income in India. The key objective of Start-up India is to promote the developmental aspects and advancement of products or services by providing numerous benefits. The Start-up India Scheme was launched on 16th January 2016 by PM Narendra Modi.

Start-up India Scheme

Start-up India Scheme is a government-led initiative. It is an incubator and accelerator for new budding social entrepreneurs. The government intends to invite, inspire and work with new talented entrepreneurs to launch ventures under the scheme. The prime minister’s initiative allows new entrepreneurs to create a deep impact to scale their models.

Start-up India Scheme
Start-up India Scheme Launch Date 16th January 2016
Initiative of Ministry Ministry of Commerce and Industry
Concerned Department Department for Promotion of Industry and Internal Trade

The government’s flagship program, Start-up India intends to streamline a start-up environment and a robust ecosystem motivating innovations in the nation. The scheme aims for long-term economic growth and an increase in the number of employment opportunities.

Other units introduced under the Start-up India scheme are the I-MADE program which aims to assist Indian entrepreneurs in creating 10 lakh (1 million) mobile app start-ups, and the MUDRA Bank’s scheme (Pradhan Mantri Mudra Yojana) which aims to provide microloans with low-interest rates to business owners from low socioeconomic backgrounds.

The Department for Promotion of Industry and Internal Trade (DPIIT) has initially recognized start-ups in 56 diverse sectors. The government has come up with a Start-up India Action Plan focusing on the three C’s – capital, courage, and connections described by Prime Minister Modi as the main prerequisites for a start-up business. The Action plan helps in spreading the movement faster in terms of awareness and participation. The campaign develops over 75 start-up support hubs.

Three Pillars of Action Plan Start-up India
Simplifying and guiding the process Financial Assistance and Incentives Collaboration between research and industry

Meaning of Start-Up

A Start-up refers to starting a business from scratch and the raw level. It also includes a company still in its development phase. Start-ups are founded by one or more business owners/entrepreneurs who manufacture goods or provide services with high market demand. To set up a start-up the owners need capital and the business requires large start-up expenses at the initial stages, for that they seek funding from several sources, including venture capitalists.

Start-up India Scheme Launch Date

Prime Minister Mr Narendra Modi under his governance took the initiative to implement Start-up India on the 16th of January, 2016. The scheme was launched with several purposes, namely, to abolish government-imposed economic liberalisation, Land Authorization, Foreign Investment Plans, and Investment Clearances.

Start-up India Scheme Salient Features

The following are some of the salient features of the Start-up India Scheme:

  • The scheme has consolidated the entire process of registering a business.
  • The feature of self-certification compliance will help start-ups save on their regulatory costs.
  • The government aims to provide low-cost legal assistance for expedited patent evaluation.
  • The government plans to fund with an initial amounting to Rs. 2500 Crore and to increase the amount to Rs. 10,000 Crore in coming years.
  • Under the scheme, the government offers a credit guarantee plan.
  • The start-up enjoys a capital gain exemption, inspections, reduction in patent registration fees and tax benefits under the scheme.
  • The scheme improves the Bankruptcy Code by ensuring a 90-day exit window.

Start-up India Scheme Eligibility

An entity or interested person has to be eligible and can apply for the Start-up India Scheme:

  • A new business is started with new innovative ideas that would qualify. An organisation created through the division or reconstruction of an already-existing corporation will not regarded as a Start-up.
  • The interested person must be an Indian citizen aged 18 or above can apply for the scheme.
  • The interested person or entity has incorporated in India as a limited liability partnership (LLP), a partnership firm, or a private limited corporation.
  • The organisations must be approved by the Department of Industrial Policy and Promotion (DIPP).
  • The interested person or entity must acquire a letter of recommendation.
  • The entity is new or not older than ten years, meaning it was incorporated or registered less than ten years ago.
  • The entity has annual revenue that has never exceeded INR 100 crores.
  • It should not be from the dissolution or restructuring of an existing business.

Official website of Start-up India Scheme

The interested person and business owners must visit the Start-up India official website i.e. https://www.startupindia.gov.in/ to find more details about the scheme, registration form, prerequisites and benefits under the scheme.

Start-up India Scheme Loan

The start-up India Scheme loan aims to give new entrepreneurs and businesses advantages. The government through the initiative intends to help with starting up the business, providing maximum employment opportunities, and stabilizing financial growth. The scheme through start-up scheme loans motivates the business owners to come up with smart and new ideas and use technology In addition, these newly established enterprises in India will benefit from administrative and tax savings, capital gains, tax exemptions, and government investment after fulfilling specific requirements.

Start-up India Scheme Registration

For successful registration of businesses under the Start-up India scheme, the applicants would require the following prerequisites:

  • The interested person or entity should incorporate the business either as a Private Limited Company, a Limited Liability Partnership, or a Partnership Firm and arrange necessary documents like the PAN, and incorporation certificate.
  • The interested person or entity must first visit the Start-up India official website i.e. https://www.startupindia.gov.in/, read and complete the registration form, and upload all necessary paperwork.
  • The interested person or entity must have all the documents needed for registration which are a letter of recommendation, an incorporation/registration certificate, and a brief business description.
  • The entity must be less than five years old and have an annual turnover of less than Rs 25 crores to qualify.
  • The interested person or entity must get his business approved by the Department of Industrial Policy and Promotion (DIPP) and have an Inter-Ministerial Board (IMB) certification to take advantage of the scheme, tax exemption and avail of IPR-related benefits.
  • The interested person or entity after registration and document verification, will receive a recognition number for the approved start-up and a certificate of recognition.

Start-up India Scheme Apply Online

The following are steps to be followed to apply for the Start-up India Scheme:

  • Visit to www.startupindia.gov.in
  • Enter the important details like the name of your business, its location, and the incorporation date.
  • Enter your personal details like PAN number, address, zip code, and state.
  • The applicant has to fill in details about the authorised representative, directors, and partners information.
  • Upload necessary documentation and self-certification for verification.
  • Submit the company’s incorporation certificate and registration form for approval.

Start-up India Scheme Conclusion

The government intends to bring a drastic change in the Indian economy and business sectors with the initiative of the Start-up India scheme. The Indian government has developed a strategy that addresses the start-up environment and every aspect of it. The Start-up India initiative covers various sectors, including technology, agriculture, healthcare, and education. The scheme promotes women entrepreneurs and opens a platform for innovative business ideas.

Start-up India Scheme UPSC

The Start-up India Scheme is one of the most aspirational and prominent schemes launched under the governance of PM Modi boosting the start-up culture in India. The Start-up India scheme is an important topic from the point of view of the UPSC Exams. All the aspirants should keep a tab on the updates and recent changes in the scheme.

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