PM Narendra Modi launches action plan for Startup India
Highlights of Startup Action Plan : Prime Minister Modi announced on Saturday a string of initiatives to support the country’s start-ups, including a Rs 100 billion fund and tax and compliance breaks aimed at cutting onerous government regulations and red-tape.
PM Modi Announces Rs. 10,000 Crore Fund, No Tax On Profits For 3 Years For Startups.
Highlights of Startup Action Plan:
- Compliance Regime based on Self-certification
- Startup India Hub – A single point of contact for the entire startup ecosystem
- Rolling out of a Mobile App & Portal – Starting a Startup in 1 day on a Mobile App
- Fast track mechanism of Startup patent applications
- Relaxed Norms of Public Procurement for Startups
- Faster Exit for Startups
- Rs 10,000 crore Fund of Funds for funding support
- Credit Guarantee Fund for Startups
- Tax Exemption on Capital Gains
- Tax Exemption to Startups for 3 Years (for startups registering after April 1, 2016)
- Tax Exemption on Investment above Fair Market Value
- Organising Startup Fests for Showcasing Innovation and Providing a Collaboration Platform
- Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilisation (SETU) Program
- Harnessing Private Sector Expertise for Incubator Setup
- Building Innovation Centres at National Institutes
- Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras
- Promoting Startups in the Biotechnology Sector
- Launching Innovation Focused Programs for Students
- Annual Incubator Grand Challenge
Here are the 10 biggest points from the announcement:
1. Tax exemptions for three years and concessions on capital gains tax.
2. Compliance regime based on self-certification and no regulatory inspection for three years.
3. A fund of Rs. 10,000 crore to back startups. Initially the corpus will be Rs. 2,500 crore. Also, a credit guarantee fund for startups.
4. A Startup India hub – a single point of contact for interactions with the government.
5. Atal Innovation Mission (AIM) for promotion of research and development including 500 tinkering labs, 35 public-private sector incubators, 31 innovation centres at national institutes, 7 new research parks, 5 new bio-clusters.
6. 90 days for a startup to close down its business.
7. 80 per cent reduction in patent filing fee and fast-track mechanism for startup patent applications. Also, a panel of legal facilitators for startups to file IP (patents, designs, trademarks) with costs borne by government.
8. Relaxed norms of public-procurement for startups. No requirement of turnover or experience, but no relaxation in quality.
9. 5 lakh schools and 10 lakh students to be involved in core innovation programmes. National and international startup festivals to provide visibility.
10. A mobile app to be launched on April 1 making it possible to register startups in one day.