This article will resolve all the quires related to Start Up India Stand Up India Loan Scheme. How to Apply, Tax Benefits and all other information, Offering of Startup India to Entrepreneurs, Key Features, benefits and Drawbacks. This Scheme will be launched by PM Modi on 5th of April 2016
Under This loan scheme a loan amount of rs 10 Lakhs to Rs 100 Lakhs would be given to SC ST and women entrepreneurs.
The startup ecology of India got its full pace soon, as the PM Modi revealed the Action Plan of Startup India Scheme this Saturday and it was done at an invitation only event of the Start Up India, Stand Up India. This event was held at Vigyan Bhawan on Saturday.
What is actually Start Up India, Stand Up India
Structured by the Industrial Policy & Promotion Department (DIPP), in conjunction with additional key players of Indian startup system, the initiative of Start Up India, Stand Up India focuses to rejoice the nation’s entrepreneurial character, and generate a strong bionetwork for fostering advancements and new business startups in the nation.
Prime minster Narendra Modi was very keen to introduce the Startup India, Standup India initiative in order to make the youth of the country stand in their own feet and create job opportunities for others. He declared a self-certification system with respect to nine environment and labor laws and stated there’ll be no check during the initial three years after launching the project. Speak to the initial conference of the entrepreneurs of start-up India, Modi declared an execution plan to advance such ventures that are witnessed as the key for employment generation as well as wealth creation.
Top Points from the Speech of the Prime Minister
The Government of India has been supporting farmers by providing them different kinds of loans for their farming practice and even allowing Debt relief on account of the harvested crops. Previous year PM Modi declared this scheme and said that the Indian youth have to focus on to create jobs and start their own businesses.
After five months of the announcement made by the PM, FM Arun Jaitley, inaugurated the ambitious scheme of the PM Modi on January 16 at Vigyan Bhavan in Delh and in that event about 1,000 entrepreneurs took part. The Ministry of HRD and the Science & Technology Department are supporting as the associates to create over 75 of such supporting hubs in different NITs, IIIT), IISERs and NIPERs. With the 4,200 startups in India, the country ranks third internationally after UK and US however India still is in the 1st place in Asia which sends Engineers and Scientist to the United States of America.
So to boost the former quantity and to lessen the later, India had planned the initiative of ‘Startup India, Standup India’. The section “Standup India” implies that the females and the entrepreneurs belonging to the SC/ST group should come forward and start their own businesses.
Offering of Startup India to Entrepreneurs
- The initiative of Standup India supported by the DFS intents to mention Women as well as entrepreneurs belonging to the SC/ST group. They have designed in supporting 2.5 lacs of borrowers with the loans from different banks that one can pay back in seven years.
- Prime Minister Modi declared that “There won’t be any income tax charged from the profits of startups’ for about three years”
- One can register a venture within 24 hours utilizing the Narendra Modi app. One just needs to fill an online application form. The filling of form through this app reduces the tedious procedure of Registering. Efforts are currently going on to reduce the time spent in registering procedure of the Startups.
- As well a fast system is to be introduced to fill applications for patents for the startups, assured by the Prime Minister Narendra Modi. “There‘ll be no negotiation on the quality however the thought is to provide the new opportunities to the new entrepreneurs’” he included.
- Prime Minister Modi plans to decrease the attachment of the state governments in the initiatives of startups so that the entrepreneurs are able to enjoy liberty.
- No tax will be charged from any startup up to 3 years after its start.
A Short Glimpse on the Startup India Standup India
|Compliance system based on the self certification
|The purpose of compliance system based on the self certification or authorization is to diminish the regulatory load on the startups. This process of self-certification will make the startups to work in their own without the fear that somebody will interfere in their business.
|Hub for Startup India||A hub for startup India will be made as the only contact point for the whole startup bionetwork to enable data exchange and to access funding assistance.|
|Simplifying the process of startup||Filling a small form through an app or web portal will make the startup venture to start as soon as possible. A mobile application will be introduced on 1st April through which new ventures can be registered easily. There will as be a web portal for approvals, registrations and clearances.|
|Protection of Patents||The union government is as well working on an authorized backing for the fast-track patent assessment at less cost. It’ll promote wakefulness as well as approval of IPRs by the startups as well as assist them in protecting and commercializing IPRs.|
|10,000 crore Funds of funds
|The central government will make a financial support system which will support new venture financially and this system will be controlled by the professionals of the business industry who are well acquainted with the funding system. This financial system will have 10,000 crore rupees to support the new ventures. The CRF for the startups will assist the flow of project debt from banking system to the start-ups through providing guarantee against any risk.|
|CRF (Credit Guarantee Fund)||A NCGTC will be created with a financial allocation of about 500 crore rupees every year for the subsequent four years.|
|Exemption of CGT||At present, investments by the VCFs in start Ups are exempted from this regulation. At the moment, the same will be expanded to the investments done by the incubators in the startups.|
|Tax exemption of startups||Exemption of income tax to the startups was declared for 3 years.|
|Startup Carnivals||Programs of innovation core for students in five lakh schools. There’ll as well be a yearly incubator grand competition to create top-notch incubators.|
|Launching of AIM||AIM started to provide a momentum to advancement and encouraging the talents among the common people.|
|Setting of 35 incubators in different institutions||The central government will set up thirty five new incubators in the different national institutes.|
|Setting of seven research parks||The central government will be setting up 7 research parks for the startups i.e. 6 in IITs and 1 in IISc with a primary investment of about 100 crore rupees.|
|Promoting entrepreneurship in the field of biotechnology||To promote entrepreneurship in the field of biotechnology, the central government is planning to invest good amount of money. The main aim is to encourage youths of the country to make career in the field of biotechnology entrepreneurship.|
|Innovation focused courses for the students||There’ll be addition of innovation core courses for the students in about five lakh schools.|
|A board will be available which will assist in filing application for patent.|
|80% discount for filing applications of patent by the startups|
|Easy rules and regulations will be implemented for the startups.|
|Faster exits will be given for the startups i.e. within six months any startup can close their venture and no levy will be charged from the startup.|
|Exemption of Tax on the investments above FMV|
Please read this article for Start Up India Stand Up India in Hindi