Every budding entrepreneur in India was awaited for the disclosure of ‘Action Plan’ of Start Up India. And it was unveiled on Saturday at Vigyan Bhawan auditorium.
This action plan indeed has lot of concessions an programs that will encourage Indians to start their enterprise.
“We have millions of problems. There is no denying that. But we also have a billion minds. And these billion minds will easily find the solutions to the millions of problems,” Modi said during the event.
Below are the key points from the action plan that will promote a culture of entrepreneurship in our country.
1. Rs. 10,000 crore fund allotted for startups
Total Corpus of Rs.10,000 crore for over four years will be drawn by various entities for the investments of start ups. The credit guarantee fund for start-up companies would help flow of venture debt from the banking system to start-ups by standing guarantee against risks. Also National Credit Guarantee Trust Company/SIDBI will be rolled out with a budgetary corpus of Rs 500 cr per year for the next four years.
2. Tax Exemptions
To boost profit and productivity of start ups, government is providing tax exemptions for three years as well as on there will be tax Exemption on Capital Gains and on Investment above Fair Market Value.
3. Mobile App for registration
The government will start a mobile app as well as online portal on April 1, 2016 which will be single point for all entrepreneurs to register their company as well as for clearance, approval , application under the scheme.
4. Atal Innovation Mission
Atal Innovation Mission (AIM) is established for promotion of research and development which will give further impetus to the start up owners. This mission will include 500 tinkering labs, 35 public-private sector incubators, 31 innovation centers at national institutes, 7 new research parks, 5 new bio-clusters.
5. Start Up Hub- Single Point for the ecosystem
The hub will act as epicenter of the plan where central and state governments, Indian and foreign VCs, angel networks, financial institutes, incubators, legal partners, consultants, universities and R&D institutions will be there to assist start ups.
6. Easy Set Up And Exit
Start up will self-certify their compliance with nine labor and environmental laws without being inspected, and would receive faster approvals. Plus no regulatory inspection for three years.
7. Faster Exits
The government provided a vital provision for fast-tracking closure of businesses have been included in ‘The insolvency and Bankruptcy Bill 2015’ in order to make startups to exit easier and faster. Startups which will have simple debt structures will be able to wound up within a period of 90 days.
8. Easier Patent process
Patenting one’s product is one of the major problems for start ups. So to tackle it, government stated in the action plan that there will 80 per cent rebate on filing patent applications by startups. Panel of facilitators to provide legal support and fees for assisting in filing of patent application will be borne by government.
9. Research parks
Research parks which are modeled on research parks in Madras will be set up. Out of seven, six will be set in IITs and one in IISc. These parks will aid start up companies with a research and other facilities.
Apart from the above key points, the action plan also included following things
- Relaxed norms of public-procurement for start-ups. No requirement of turnover or experience, but no relaxation in quality.
- Promoting Start-ups in the Biotechnology Sector
- Innovation programs for school students and best ideas will showcased at an Annual Festival of Innovations.
You can check out entire report here.