Prime Minister Modi on Saturday 16th January 2021 launched Rs.1000-crore “Startup India Seed Fund” to support startups and help the entrepreneurs pursue innovative ideas.
Remitting the ‘Prarambh: Startup India International Summit’, PM Modi said that the growth of startups will help in generating jobs.
What is Startup India?
Startup India is an initiative of the Government of India, intended to catalyse startup culture and build a strong area for innovation and entrepreneurship in India.
The nation is launching Rs.1000 crore Startup India Seed, Fund to provide initial capital for startups and help them in setting up new startups and promote their Growth. The fund being implemented will help Startups raise equity capital. Modi also added that the government will also help startups in raising debt capital.
The scheme intends to increase Entrepreneurship in the country by providing subdue environment for the business people.
Startup India Portal- The startup India portal is a website in the online platform for startups and entrepreneurs. It has a large network connecting tens of thousands of key stakeholders on a single platform and encouraging them to discover and collaborate with each other. The Portal is one of the program under the Startup India initiative.
Who is eligible?
The criteria for startup eligibility are enlisted below:
- Being registered in India from the fate of incorporation for less than 7 years and biotechnology startups for up to 10 years.
- Must obtain certification from the Inter-Ministerial Board set up for such a purpose
- The company can be incorporated as a registered partnership firm, a limited liability partnership or as a private limited company.
- Annual turnover should not exceed Rs 25 crores in any of the preceding financial years.
- The company should aim to work towards deployment or commercialization of new products, development, innovation, services driven by technology or intellectual property.
- The firm should not be formed by splitting or reconstruction of a business that is already in existence.
Do startups have to pay GST?
As per GST, the threshold is 20 lakhs thus exempting many small businesses including startups. It also has a scheme of lower taxes for small businesses with turnover between 20 to 1 crore (optional).
For businesses with annual turnover upto 1.5crores, Taxes will be paid quarterly.
Startups can enjoy tax credit on their purchases that are Under GST regime they can set off the VAT paid on the purchases with the service tax on their sales which they cannot under the current regime.
How to get a Startup Certificate?
- You need to incorporate your business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm.
- Then you need to register under startup India by filling up the form in the Startup India website.
- You need to get a letter of recommendation along with the registration form. The recommendation letter can be one of the following:
- A recommendation letter from an incubator that the Government of India funds as part of any specified scheme to promote innovation.
- A letter from any of the recognised by the Government of India, in DIPP format.
- A recommendation letter from an Incubator known in a post-graduate college in India, in a format approved by the DIPP.
- A recommendation later by the Central or any State Government of India.
- A letter of funding not less than 20% in equity, by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI.
- A patent filed and published in the Journal of Indian Patent Office in areas affiliated with the nature of the business being promoted.
You need to upload the certificate of incorporation of your company or LLP, or the registration certificate for a partnership company.
All the documents should be uploaded in PDF format.
4. Mention if you need tax exemption.
5. A Self-certification on the above eligibility criteria.
6. Finally get your recognition number.
The startup India patent application registration fees have been reduced up to 80%.
For Startup Registration the fees are Rs.4,500/- for online and Rs. 5,000/- for physical filling whereas for others, it is Rs. 9000/- 0r Rs.10,000/-.
Things to focus on to get your Startup off the ground:
- Make an effective business plan.
- Try and surround yourself with the right bunch of people.
- Find a location and build a website on the online platform.
- Secure suitable funding.
- Every business needs to build a customer base.
- You need to become a marketing expert.
- As a business owner, you need to prepare for anything and everything.
It is not at all easy to launch a startup company. You need to determine whether you have what it takes to become an entrepreneur. It’s important for you to prepare for all sorts of unforeseen circumstances.
You need to analyze if your idea is worth turning into a business. Want to start your business?