Our Prime Minister Shri Narendra Modi had introduced Startup India Scheme on 16th January, 2016 in order to promote entrepreneurship in the Country by providing special benefits to the startup ups such as tax exemption on capital gains on investments.
The launch of the scheme got lot of media attention; however it was not well accepted by the prospective startups who wanted to benefit from the scheme. One of the main reasons for the poor response of the scheme was that the requirement to be qualified as a startup under the scheme was monstrous. And that this requirement of qualification was defeating the very purpose of the scheme.
Taking note of the grievance among the prospective start ups, the Government has calibrated the requirement to be qualified as startup and has brought further clarity and ease for newly set-up ventures to be called “Startup”. It is now easier for early stage amateur startups to take the benefit of the scheme.
Comparison Chart – Startup Scheme
|
Qualification for Startup |
Before | Now |
|
Years into business |
Business not older than 5 years |
Business not older than 7 years |
| Sector which the startup has to operate | Innovation/driven technology or intellectual property | Additional sectors added: Development/improvement of existing services / potential to scale or create large scale employment |
| Certificate of eligibility | From DIPP (Department of Industrial promotion and policy) | No such requirement |
| Letter of recommendation | From incubator / industry association | No such requirement |
Other Benefits under the scheme are as under:-
- Fast track Patent application:- Patent Application of the startups are quickly processed and can get rebate on patent fee upto 80%.
- Tax exemption :- Tax holiday for 3 years
- Exemptions on capital gains:- Tax exemptions on capital gains and investments above fair market value.
- Rs 10,000 crore fund:- Government shall invest funds into startups through alternate investment funds.
How can Law Tarazoo help?
At Law Tarazoo, we can help you built your enterprise and take care of all your legal needs, so that you can concentrate on your business. Just give us a call on 07977253010 and start your journey, it’s that simple.
