Four years back on January 16, the Startup India Initiative was launched by the government of India. The project was undertaken for the creation of a strong startup ecosystem, supporting entrepreneurs and paving India for job creation instead of seeking. But more than that it had another major motive of the Startup India Scheme was to create a robust ecosystem to promote startups in India.
Such an initiative would pave opportunities in employment at large scale, and also for sustainable economic growth. With this initiative, the government aimed for startup empowerment via design and innovation. But before we flock on to know how startups in India get benefits, with an initiative like Startup India Scheme, let us have a clear idea of the startup.
Understanding Startup
On February 19, 2019, the department for the promotion of industry and internal trade issued a notice introducing the concept of a startup. A startup is defined as an entity that came into being for 10 years since the date of its registration and incorporation. As per the Companies Act, 2013, such an entity in India is termed as a Private Limited Company. As per section 59 of the Partnership Act, 1932, it is called Partnership Firm and according to the Limited Liability Partnership Act, 2008, it is known as a Limited Liability Partnership. Startups in India don’t have more than Rs 100 crores since registration or incorporation during any financial years.
Startups can also be defined as those newbie firms that are heading towards development and bringing newer concepts or ideas of products and services. In other words, startups are those entities comprising a scalable business model that has worth generating employment and the creation of wealth. If there is any motive of reshaping the present business or division, then that entity can’t be called a startup. Startups in India do not remain to be termed as startups once they cross 10 years from the day of registration. Also, if it surpasses Rs 100 crores turnover in its previous financial decades.
How Startups In India Are Benefitted With Startup India Scheme
Now, let us know about the benefits that are given to startups in India under this scheme.
Certified Under Labour Laws
Startups in India can get certified under labour laws (6) and environment laws (3) too. The validity is applied for 5 years from the date of formation. This benefit is really helpful for startups as it lessens the burden of regulation, and let them concentrate on their business.
No Tax For 3 Years
All the well-known startups that have earned profits are given a certificate from the inter-ministerial board stating income tax exemption for 3 years.
Company Wind Up
Startups in India are fast-track companies that can wind up within 90 days contrary to other companies for 180 days.
Startup Paisa: A Two-Way Platform For Startups And Investors
After getting much to know about the Startup India Scheme and its benefits, I would like to introduce Startup Paisa. It is a two-way platform that helps startups in India regarding seed funding by getting angel investors and investors. And on the other hand, it helps investors find the best startups to invest in. Besides this, it creates a link between businesses, investors, entrepreneurs, and innovators.
Conclusion
So this is what you need to know about the Startup India Scheme launched by the government of India to give a boost for startups in India and allowing them to reach their goals. In this blog, I mentioned about how startups are defined as per the section laws. One of the benefits under the scheme availed by startups is the tax exemption for 3 years and getting certified under labour and environment laws. If you search for a startup investment platform having worth, then Let’s Venture is one such name. Moreover, I find it important to mention Startup Paisa as it is the best platform helping any startup rising from ground level through funding.
