Is STARTUP INDIA Boosting Entrepreneurship | MBA in Entrepreneurship in Bangalore

Posted by Prof Anil Kumar R On 09/05/2022 12:01:33

Startup India was founded by the government for fostering and supporting entrepreneurship across the country. The concept is based on an action plan that intends to enhance bank funding for startups to boost entrepreneurship and support businesses with employment development. Prime Minister Mr Narendra Modi originally announced the campaign on 15 August 2015 and then began on 16 January 2016. It is an organisation that is based in India was founded less than seven years ago and has an annual turnover of less than Rs 25 crore (US$3.9 million).

Ministry of HRD and the Department of Science and Technology have cooperated to build up 75 Startup support centres. Reserve Bank of India is committed to taking initiatives to help enhance the ‘ease of doing companies in the country and contribute to an environment that is essential for the growth of startup firms.

The necessity for a buddy, guide, and mentor to grasp the hand of the young entrepreneurs and walk with them has been taken care of with the creation of the Startup India Hub. It was designed for enhancing the ease of doing business in India, which is a single contact point for startup founders. It is a crucial stakeholder and operates in a hub and partners with Central and State governments, angel networks, banks, international and Indian VCs, incubators, and aids companies throughout their life cycle. MBA in Entrepreneurship in Bangalore

Some of the outcomes of Startup India:

  • India is the third-largest startup ecosystem in the world
  • 45 per cent of all the filed startups were from Tier II and III cities
  • 45 per cent of the enterprises were run by women entrepreneurs
  • DPI has also launched a Funds Of Fund For Startup (FFS) of INR 10,000 Cr (about $1.35 Bn) in 2016
  • Of the entire FFS, INR 6,495 Cr (about $935 Mn) has been already committed to Alternative Investment Funds (AIFs) (AIFs)
  • 40+ unicorns generated in 2021 alone
  • In 2022, India achieved 100 unicorns in total.

Details of achievements under Startup India Initiative

Intellectual Property Rights (IPR) benefits I. Startups are entitled to an 80 per cent discount on patent filing expenses and 50 per cent on trademark filing fees. Additionally, Startups are also granted the possibility of accelerated assessment of patent applications to decrease the time taken in issuing patents. II. 510 patent facilitators and 392 trademark facilitators have been empanelled, as of November 2020, under this plan to give free-of-charge services to Startups. III. As of November 2020, i. 5020 patent applications have been filed. ii. Expedited examination for patent applications filed by Startups – 1170; of these 459 Patents awarded. iii. The total number of Trademark applications submitted – was 12,264. AICTE approved in Bangalore

Easing Public Procurement

The criteria of past turnover and prior experience have been reduced to allow startups to participate in tenders. Further, startups have been exempted from the necessity of earnest money deposits. II. ‘GeMStartup Runway’ has been developed for entrepreneurs to offer products and services to Government. As of 4th January 2021, 7,929 DPIIT accredited companies have registered on Government e-Marketplace (GeM) (GeM). III. As of 4th January 2021, 53,226 orders from public bodies have been placed to startups with the value of orders of Rs. 2,279 crores. IV. Additionally, Startups can now register and participate in all public orders on Central Public Procurement Portal and gain exemptions on previous experience, prior turnover and earnest money deposit criteria. V. GeM has waived the requirement of an authorised Trademark certificate for DPIIT Recognized Startups. An application for a trademark will be sufficient.

Self-Certification under Labour and Environmental legislation

Startups accredited under the Startup India programme can self-certify their compliance with the 6 labour regulations and 3 environmental legislation. II. 27 states and UTs have adopted the procedure of self-certification for startups under 6 labour laws. 9 States (Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Punjab, Uttarakhand, and Delhi) have merged their sites with Shram Suvidha Portal. Overall, 169 DPIIT certified Startups have enjoyed the benefits of self-certification.

Tax Exemption to Startups for 3 years

The provisions of section 80-IAC of the Income Tax Act provide for a deduction of an amount equal to 100 per cent of the profits and gains derived from an eligible business by an eligible start-up for 3 consecutive assessment years out of 7 years, at the option of the assessee, subject to certain conditions. The Finance Act, 2020 provides for an amendment to section 80-IAC of the Income Tax Act so as to provide that the deduction under the said section 80-IAC shall be available to an eligible start-up for a period of 3 consecutive assessment years out of 10 years beginning from the year in which it is incorporated. This modification will take effect from 1st April 2021 and will, consequently, apply in connection to the assessment year 2021-22 and following assessment years. II. To receive these incentives, a Startup must acquire a Certificate of Eligibility from the Inter-Ministerial Board (IMB) (IMB). 329 startups have been given income tax exemptions till December 2020.

Tax Exemption on Investments exceeding Fair Market Value

DPI(The Department for Promotion of Industry and Internal Trade ) approved startups are free from tax under Section 56(2)of the Income Tax Act where such a Startup gets any payment for issuing shares which exceeds the Fair Market Value of such shares. The startup has to file a validly signed statement in Form 2 to DPIIT {as per notification G.S.R. 127 (E)} to claim the exemption from the terms of Section 56(2) of the Income Tax Act. As of 3rd February 2021, with regard to declarations received from entities, given in Form 2, notification of the receipt of declaration in Form 2 has been mailed in the cases of 3612 entities.

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