Startup India Scheme

Startup India Scheme is an incubator, accelerator, and leadership springboard for social
entrepreneurs. Through the scheme, the government works with early-stage social
entrepreneurs to launch ventures that create deep impact, facilitate growth-stage social
entrepreneurs to scale their models and drive large-scale systemic change, and rain and coach
leaders for the sector, who are as yet unrecognized and untapped.
The Government of India's flagship program, Startup India, aims to create a robust ecosystem
for fostering startups and innovation in the nation, fostering long-term economic growth and
creating significant employment possibilities. The government hopes that this effort will enable
startups to develop via creativity and innovation.
The I-MADE program, which aims to assist Indian entrepreneurs in creating 10 lakh (1 million)
mobile app start-ups, and the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana), which
aims to provide microloans with low-interest rates to business owners from low socioeconomic
backgrounds, have already been introduced by the government under the Startup India
Scheme.

What are Startups?

A startup refers to a business that is just getting started. Startups are created by one or more
business owners who desire to provide a good or service for which they feel there is a market.
These businesses typically have large startup expenses and little income, so they seek funding
from several sources, including venture capitalists.
Across 56 diverse sectors, the Department for Promotion of Industry and Internal Trade (DPIIT)
has acknowledged startups. It is interesting to note that under the Startup India Scheme, the
number of startups increased from 471 in 2016 to 72,993 in 2022.

Highlights of the Startup India Scheme

The major highlights of the Startup India Initiative are:

Points Description

Start Up India Scheme Launch 16th January 2016

Date

Concerned Ministry Ministry of Commerce and Industry

Start Up India Scheme Department Department for Promotion of Industry and Internal
Trade

Benefits of Start Up India Scheme

The benefits under the Startup India Scheme are:
• Investment pool for startups of 10,000 crores.
 • Reduction in the cost of registering a patent.
• Enhanced Bankruptcy Code to guarantee a 90-day timeframe for filing.
• For the first three years of operation, there will be no inspections. For the first three
years of business, there is no tax.
• There will be tax-exempt capital gains during the first three years of operation.
• Conformity with self-certification.
• A hub for innovation was established as part of the Atal Innovation Mission.
• To focus on 5 lakh schools and engage 10 lakh kids in programs connected to
innovation.
• New programs to protect startup companies' intellectual property.

Eligibility for Startup India Scheme

An entity can apply for Startup India Scheme when:
• It is incorporated in India as a limited liability partnership, a partnership firm, or a private
limited company.
• It has a history of less than ten years, meaning that it was incorporated or registered less
than ten years ago.
• Since incorporation/registration, the company's annual revenue has never exceeded INR
100 crores.
An organisation created through the division or reconstruction of an already-existing corporation is
not regarded as a "Startup."

How Startup India Scheme Facilated Growth of Start Up in India?

The Government of India, under various programs undertook the below mentioned initiatives to
promote the Startup India Scheme in all parts of the country.

Startup India Action Plan

• The Action Plan established the framework for government assistance, programmes,
and incentives intended to develop a thriving startup ecosystem in the nation.
• There are 19 actions included in it, covering topics like simplification and support,
funding assistance and incentives, and industry-academia collaboration and incubation.
• The Startup India Action Plan established the framework for government assistance,
programmes, and incentives intended to develop a thriving startup ecosystem in the
nation.

Startup India Hub

• It is a first-of-its-kind online platform that enables interaction and discovery between all
participants in India's entrepreneurial ecosystem.
• Startups, investors, funds, mentors, academic institutions, incubators, accelerators,
corporations, governmental bodies, and more are all hosted by the online hub.

Startup India Seed Fund Scheme (SISFS)

It seeks to offer funding help to entrepreneurs for market entry, product testing, prototype
creation, proof of concept, and commercialization.

Government Schemes
• The National Initiative for Developing and Harnessing Discoveries (NIDHI), an umbrella
programme started by the Department of Science and Technology (DST), aims to foster
knowledge-based and technology-driven innovations into profitable enterprises.
• The PRAYAS initiative, which was created to support entrepreneurs financially, stands
for Promoting and Accelerating Young and Aspiring Innovators and Startups.

Defense Sector and Biotechnology

• The Innovations for Defence Excellence (iDEX) program was established by the
Department of Defense Production with the goal of encouraging innovation and
technological advancement in the defence and aerospace sectors by involving
businesses, R&D organisations, and academic institutions and giving them funding to
conduct research.
• Through the Biotechnology Industry Research Assistance Council (BIRAC), the
Department of Biotechnology supports and fosters biotechnology businesses in order to
promote biotechnology innovation.

Atal Innovation Mission

• The government has established Atal Incubation Centers (AIC) as part of the Atal
Innovation Mission to foster businesses in various industries.
• Additionally, it has introduced the Atal New India Challenge (ANIC) program to help
entrepreneurs with technological ideas that address pressing societal and national
problems.
Start Up India Initiative: Process of Registration
The following are the prerequisites for successful registration of businesses under the Startup
India scheme:
• Before starting a business, a person should incorporate it as a Private Limited Company,
a Limited Liability Partnership, or a Partnership Firm and get the PAN, certificate of
incorporation, and other necessary compliances.
• To register a business, a person must first connect to the Startup India official website,
complete the registration form, and upload all necessary paperwork.
• Some of the crucial documents needed for registration are a letter of recommendation,
an incorporation/registration certificate, and a brief description of the business.
• Since start-ups are not eligible for income tax benefits, businesses must first be
approved by the Department of Industrial Policy and Promotion (DIPP) in order to take
advantage of these advantages. In order to be qualified for IPR-related benefits, they
must also hold an Inter-Ministerial Board (IMB) certification.
• You will receive a recognition number for your startup as well as a certificate of
recognition right away following successful registration and document verification.