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:
- 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.
- Five years must not have elapsed from the date of incorporation/registration.
- Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.
- Startup must be working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.
- 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.
- 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
- The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
- The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business, and
- 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
- 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
- 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
- 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
- be funded by the Government of India as part of any specified scheme to promote innovation; or
- have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.
[Sources PMO, PIB]