The India has become the largest startup spot in the world. The startup is becoming very popular every day in India. It is playing a big role in encouraging innovation, job creation and positively impacting on the social-economic fabric of the country. To promote entrepreneurial spirit and help Indian economy, the government of India has taken several initiatives under the Startup India. There are lots of benefits of startup India, some are described below.
- It is easy
There is the easiest way of registration for everyone in the startup with easy use of the mobile app and the website that is launched by the government of India. If anyone is interested in startup and set up then he or she can fill the simple form on the website and upload certain documents. The entire process of the startup is completely online.
- Provide a cost reduction facility
The list of patents’ facilitators and trademarks are also available in the startup provided by the government. They offer the high-class intellectual property rights services including a quick examination of a low-fee patent. The government only takes facilitating charges so you can enjoy 80% reduction in the cost of the patent filed.
- Easy to access the fund
A fund of 10,000 crore rupees has been set by the government to provide funds for startup in the form of venture capital. The government is also giving the guarantee to the lenders to encourage the banks and other financial institutions to provide venture capital.
- It is tax-free for 3 years
There will be no income tax payable on all the profits earned in the first 3 years. Thus it is government’s financial assistance to the startup.
- Apply for tenders
The startups also can apply for the government tenders. The startup India is exempted from the “pre-experience / business or turnover” norms applicable to general companies applying for government tenders.
- Research and development facilities
The seven new research parks will be established in the research and development sector to provide better startup facilities.
- No time-consuming compliances
For saving the time and money of the startup, various compliances have been simplified. Through the Startup mobile app, startups are allowed to self-certify compliance with 9 labors and 3 environmental laws.
- Tax saving for investors
The people investing their capital in the enterprise fund established by the government will get the exemption from capital gains tax. This will help a startup in attracting more investors.
- Choose your investor
The startups will have the choice between the VCs, where they are free to choose their investors.
- Easy to exit
In a case of the exit, the startup can easily close the business within 90 days from the date of application for closing business.
- Huge networking opportunities
The government has proposed to organize two start-up festivals at a national level and international level so that they can meet with the various stakeholders of startup. This will provide the vast networking opportunities.
The startup is extremely encouraging by the government. Therefore people are setting up startups. If you are one of them then tax relaxation can help you on your way.