5:09 pm - Saturday October 22, 2016

PM launches Start-up India movement, unveils action plan

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Startupindia with modi

PM launches Start-up India movement, unveils action plan

The Prime Minister, Shri Narendra Modi, launched the Start-up India initiative in New Delhi on January 16. The launch by the Prime Minister in the evening, was preceded by a day-long workshop on various aspects of entrepreneurship. Union Ministers Arun Jaitley, Nirmala Sitharaman also attended the programme and participated in a discussion with Onno Ruhl, Country Director, World Bank, and Amitabh Kant, Secretary, DIPP. To interact with Start-up entrepreneurs, the Prime Minister visited a virtual exhibition at Vigyan Bhawan, the venue of the event. Ten outstanding Start-up innovators shared their thoughts and experiences before the Prime Minister delivered his address. He said that when he had launched the Start-up India Initiative on 15th August, the announcement had virtually gone unnoticed, but today it had registered with people.

In the programme, Prime Minister said successful start-ups are usually created by those who are driven by an idea, or an urge to solve a problem that people face. He opined making money is not the primary objective, but is often a by-product. Start-up innovators are often driven by a sense of compassion for others, he added.
PM Modi expressed that he wishes to turn the youth of India from job-seekers to job-creators. He said if a Start-up can offer employment to even five people, it would be doing a great service to the nation. He mentioned some areas where youth innovators should focus, including crop wastage, and cyber security.
Unveiling the highlights of the Start-up Action Plan, he announced a dedicated Start-up fund worth Rs. 10,000 crore will be created for funding of Start-ups.

He also announced Start-ups will be exempted from paying income tax on their profit for the first three years. He said the Government is working on a simple exit policy for Start-ups. “The Government is working towards fast-tracking of Start-up patent applications,” PM added further. On the day, he also announced an eighty percent exemption in patent fee for Start-up businesses. According to him, a self-certification based compliance system for Start-ups would be introduced for 9 labour and environment laws. He said the Atal Innovation Mission will be launched to give a boost to innovation. Addressing the start-ups, PM said “ Startups don’t have to be billion dollar ventures. Even if it employs five people, it is contributing to the Indian economy .” Finance Minister Arun Jaitley said “ Easier availability of capital and friendly tax regime will be the key features of Startup India Movement”.

A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations. Presently India ranks third in global startup ecosystem.

Conditions for taking benefits of Startup India Scheme:

  1. It must be an entity registered/incorporated as a:
    Private Limited Company under the Companies Act, 2013; or
    Registered Partnership firm under the Indian Partnership Act, 1932; or
    c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
  2. Five years must not have elapsed from the date of incorporation/registration.
  3. Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.
  4. Startup must be working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.
  5. The Startup must aim to develop and commercialise:
    a) a new product or service or process; or
    b) a significantly improved existing product or service or process that will create or add value for customers or workflow.
  6. The Startup must not merely be engaged in:
    developing products or services or processes which do not have potential for commercialisation; or
    undifferentiated products or services or processes; or
    c. products or services or processes with no or limited incremental value for customers or workflow
  7. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
  8. The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business, and
  9. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator established in a post-graduate college in India; or
  10. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
  11. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator recognized by GoI; or
  12. be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
  13. be funded by the Government of India as part of any specified scheme to promote innovation; or
  14. have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

[Sources PMO, PIB]

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