In the present era, start-ups are not only crucial for the economic growth of our country but also play a huge role in our daily lives. Wondering how? Think about the rise of mobile apps like Myntra, BookMyShow, Zomato, Nykaa, Bigbasket, Amazon, etc. All these brands didn’t take much time to shift from being a brand new initiative to the top-most essentials for almost everyone. That’s how start-ups are revolutionizing the whole world with their innovative business ideas.
However, while talking about the start-up craze, we can’t miss the fact how India witnessed a lot of changes in the corporate dynasty with the introduction of the Startup India Scheme by the government.
Narendra Modi, the Prime Minister of India, announced the scheme in 2015 and the official launch of the scheme dates back to 16th January 2016.
Primarily, the campaign aims to build up an ecosystem where the Indian government will empower all the new ventures that are thriving for a bright and lucrative future. This initiative will further stimulate technological growth, economical growth, entrepreneurship, innovative ideas, and employment in India.
Usually, most Indian start-ups get registered under the following three categories:
Private Limited Companies
Limited Liability Partnership Firm To avail the benefits of the startup scheme, companies need to meet the eligibility criteria given below:
First and foremost, the firm must provide innovative products or schemes
The company should be an LLP or a Private Limited company
The start-up needs the approval of the Department of Industrial Policy and Promotion
A recommendation letter by an incubation is a must
A start-up shouldn’t be older than five years
The firm’s total turnover must not exceed twenty-five crores
It should not be an extension or a re-arrangement of any existing business
If a start-up meets all the above-mentioned eligibility factors, it can enjoy all the benefits the scheme has to offer!
Here are the top benefits of the scheme:
This scheme lets the new ventures allow a simplified registration process that minuses the stringent labor law compliances. Plus, the government also allows the start-ups to self-certify themselves.
A start-up can also make the most of the feature Single Window Clearance from the mobile app that has the option to register by just filling out a single form.
The government has also created a virtual platform so that the entire startup ecosystem can connect and engage with their fellow businesses, exchange some knowledge, inspire each other and find access to collaborate.
This scheme has several measures to promote awareness about Intellectual Property Rights (IPR). All the aspiring start-up owners can protect their patents as their dream project will be registered as a single entity.
Funding is the biggest challenge a startup faces while establishing a business. The Life Insurance Corporation of India plays a big role in letting the new companies enjoy the perks of the startup India scheme. Depending on their future growth, the start-ups can get funding worth RS.10,000 crore.
For the initial three years of their start-up journey, an entrepreneur doesn’t have to pay the income tax. That way, a startup can minimize its financial burden till it receives notable growth.
In the past few years, India witnessed the growth of thousands of startups and the number is just increasing with the passing days. The present year, 2022, is going to be even bigger than the last years as today’s youngsters don’t fear taking the challenge of building a start-up from scratch. In such a scenario, the Startup India Scheme was a much-needed campaign as it focuses on:
Handholding and simplification
Providing funding support
Incubation and Industry-Academia Partnership
The Startup India initiative has truly added wings to the dream of future entrepreneurs as many have already benefited from the program. A new venture can never compete with well-known, prestigious brands already thriving out there. Therefore, they need a backbone at least during the initial years of their journey.
Furthermore, it will continue inspiring and fueling up the young minds who dream fearlessly and work hard to make their visions into their reality. The budding initiatives needed a push and the Indian government scheme has added a lot to that!