Stand up India Start up India:
The Prime Minister Shri Narendra Modi launched the Stand up India Start up India initiative in New Delhi in January. The launch by the prime minister was done at the virtual exhibition and interaction with Startup entrepreneurs. The prime minister said he wishes to turn the youth of India from job –seekers and job- creators. If start up can offer employment to even few people, it would be doing a great service to the nation. He mentioned some areas where youth innovators should focus, including crop wastage, and cyber security.
The prime minister unveiled the highlights of the Startup Action Plan:
A dedicated Start up fund worth Rs 10,000 crore will be created for funding Start-ups. An 80% exemption in patent fee for Start-up businesses and a self-certification based compliance system for Start –ups would be introduced for 9 labour and environment laws. He said the Atal innovation mission will be launched to give a boost to innovation in Stand up India Start up India.
Start-up India Action Plan Highlights:
The government will set up a fund with an initial corpus of Rs 2500 crore and a total corpus of Rs 10000 crore over a period of four years, which will be managed by a board of private professionals drawn from industry bodies, academia, and successful Start-ups. The fund will participate in the capital of SEBI registered, venture funds, and invest in sectors such as manufacturing, agriculture, health and education under Stand up India Start up India.
The government will launch a mobile app and a portal on April 1 which will enable Start-ups to register their company in a day. The portal will also act as a point of contact under the scheme.
Fast track patent registration at lower cost under Stand up India Start up India:
For a period of 1 yr. the central government shall bear the cost of patents, trademarks and designs for a start-up, with 80% rebate to encourage the creation and protection of its intellectual property. A credit guarantee mechanism will help raise debt funding through National Credit Guarantee Trust Company (NCGTC) or SIDBI which has an annual corpus of Rs. 500 crore for the next four years under Stand up India Start up India.
The Stand up India Start up India hub will serve as a single point of contact for the entrepreneurs. Start-ups may be wound up within a period of 90 days from making an application for winding up on a fast track basis, as per the recently tabled Insolvency and Bankruptcy Bill 2015, which has provisions for voluntary closure of businesses. process will respect the concept of limited liability.
Quick review of Recent activity:
From providing tax exemption to start-ups to setting up a corpus fins to enable the new firm start business with ease, Prime Minister Narendra Modi unviled an array of incentives while kick-starting his pet project: Start-Up India.
Top 10 take-aways from the PM that cheered the start-ups in the arena.
1. Tax exemption for start-ups for 3 yr.
2. Rs. 10,000 cr. corpus fund to support start-ups.
3. Capital gains tax to be exempted for venture capital investments.
4. 80% reduction in patent registration fee.
5. Govt. to ensure 90-day window for start-ups to close businesses.
6. Self-certification compliance for start-ups across India.
7. No government inspection for 3 yr. for newly-formed start-ups.
8. New scheme to provide IPR protection to start-ups and new firms.
9. Innovation programme to start 5 lakh schools to target 10 lakh children.
10. Government is all set to launch an app to create a platform for interaction with start-ups.
11. HDFC Bank has chosen five start-ups it will work with to strengthen their web, mobile and payment offerings. 5 start ups companies with whom HDFC Bank has tied up are Sense forth Technologies into AI customer response, Tagnpin -a marketing and customer engagement company, Safe2Pay-a point of sale-free payment system, Bugclipper-an in-app feedback tool, Taptis Technology– a bio metric payment company.
12. The Small Industries Development Bank of India (SIDBI) will raise the proposed Rs 10,000 Crore corpus for ‘Stand Up India Fund’ from Reserve Bank Of India. The Fund will be disbursed to Dalit and women entrepreneurs. According to that scheme each bank branch has been mandated to lend to one micro-enterprise promoted by a woman and SC and ST entrepreneur and the funds will also include one devoted for factoring, educational loans, Mudra loans of up to Rs 10 lakh and the Stand Up India loans.
13. SBI became the first public sector lender to launch wealth management service, a space dominated by private and foreign players, to cater to fast-growing affluent segment of the country. The bank also inaugurated a dedicated branch for start-ups which will provide advisory services to the budding entrepreneurs.
14. The country’s largest public sector bank(PSB), State Bank of India (SBI), has opened its first branch dedicated to serving startup companies in Bengaluru. The bank envisions that its InCube branches will be a one-stop shop for the financial service requirements of startups in the country.
15. Budget 2016 expectations PM Narendra Modi’s ‘Startup India Stand Up’ scheme lifted many spirits at startups. He has promised a lot to promote the startups culture in India. Now as Union Budget 2016-17 nears, the startup community in India is expecting a healthy tax regime to power the high-spirited startup ecosystem in India, which is running on a lot of hope and very little funding, barring the high-profile ventures. Here we list the major areas of concern and expectations of startups catering to different verticals such as Fintech, travel.