Schemes

Atmanirbhar Bharat Abhiyan: A Blueprint for India’s Self-Reliance

February 21, 2025February 21, 2025startupstoryhubComment(0)

Atmanirbhar Bharat Abhiyan, or Self-Reliant India Mission, is a drastic measure taken by the Indian government to transform India into a self-reliant and independent nation in various fields such as the economy, infrastructure, and technology. It encompasses concepts such as ‘Local for Global,’ ‘Made for World,’ and ‘Vocal for Local.’ It was while the pandemic […]

Schemes

India’s eBiz Portal: Key Features, Benefits & How It Works

February 19, 2025February 19, 2025startupstoryhubComment(0)

Setting up a new business in India can be complicated, especially if you are new in business. The process can be particularly challenging for foreign investors due to the complex paperwork and unknown regulations. Although India’s economic reforms since the 1990s have eliminated the well-known ‘ License Raj,’ the country is still behind in the […]

Schemes

ASPIRE Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship

February 17, 2025February 19, 2025startupstoryhubComment(0)

MSMEs, which contribute approximately 30% to India’s Gross Domestic Product (GDP), are supported vigorously by the government through various schemes to sustain the business potential of the country. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE Scheme) is one such flagship program, initiated by the government to provide support to MSMEs through […]

Schemes

Mahila Samriddhi Yojana 2025: All You Need to Know

February 17, 2025February 17, 2025startupstoryhubComment(0)

Mahila Samriddhi Yojana is a government scheme that benefits women entrepreneurs from poor and weaker sections of society. The scheme was started by the National Backward Classes Finance and Development Corporation (NBCFDC), initiated by the Ministry of Social Justice and Empowerment. This scheme by the Government provides micro-finance, either directly or through Self-Help Groups (SHGs), […]

Schemes

Atal Innovation Mission NITI Aayog: Transforming Innovation & Entrepreneurship

February 10, 2025February 12, 2025startupstoryhubComment(0)

AIM or Atal Innovation Mission NITI Aayog is a useful initiative launched by the Niti Ayog to boost innovation and entrepreneurship across key sectors, educational, business, research, etc. Atal Innovation Mission objective is to encourage innovative activities among young individuals to bring out creative solutions that will lead the nation towards growth and advancement. Various […]

Schemes

Pradhan Mantri Mudra Yojana: Government Credit Support to Small Businesses

February 4, 2025February 14, 2025startupstoryhubComment(0)

Pradhan Mantri Mudra Yojana is a government scheme introduced by the Prime minister to empower small entrepreneurs belonging to non-corporate, non-farm, and small/ micro enterprises through financial support. Under this scheme, up to Rs. 20 Lakh loans are provided to entrepreneurs, categorized as Mudra Loans by the Commercial Banks, RRBs, Small Finance Banks, MFIs, and […]

Schemes

DPIIT Recognition for Startups Under the Startup India

February 3, 2025February 3, 2025startupstoryhubComment(0)

The recognition received under the Startup India Scheme by the Department for Promotion of Industry and Internal Trade (DPIIT) gives a startup plenty of benefits. Among other things, this includes tax holidays for three years and intellectual property (IP) filing concessions. All these can provide great help in the development and finance of a new […]

Schemes

Income tax exemption for startups under Startup India

February 3, 2025February 3, 2025startupstoryhubComment(0)

Section 80-IAC of the Income Tax Exemption Act, 1961, which was enacted on April 1, 2017, offers a full 100% tax deduction on profits to eligible taxpayers for three consecutive years. It greatly benefits the businesses during these three years by giving them much-needed relief in taxes. The income tax benefit accrues under Section 80-IAC […]

Startup India

The entrepreneurial scenario in India has changed over the last decade. The Indian government is supporting innovation through its Startup India initiative, creating employment opportunities and accelerating economic growth. In this blog, let's discuss Startup India, including its objectives, benefits, and eligibility criteria; also, know how to get a startup registered under this initiative.

What is Startups ?

A startup is the early stage of a company that is formed to develop a unique product or service, introduce it into the market, and scale it to make substantial revenues. Startups are an important part of innovation, job creation, and diversification in the economy. In India, startups play a critical role in driving technology adoption and solving complex challenges in areas such as healthcare, education, and financial inclusion.

Characteristics of a Startup

Innovation: Key concentration in developing new products, services, or processes.
Scalability: Ability to grow rapidly with low incremental costs.
Disruption: Challenge traditional business models or industries.

Importance of Startups in India

Job Creation: Startups are significant employment generators.
Economic Growth: Contribute to GDP by introducing new industries.
Technological Advancement: Drive innovation and technology adoption.

What is the Startup India Initiative?

Startup India is one of the flagship initiatives of the Government of India, launched on January 16, 2016. It aims to build a robust ecosystem that nurtures innovation and startups across the country. The idea is to give an impetus to economic growth and employment generation in a substantial way. Startup India seeks to encourage entrepreneurship by giving a boost to innovation and design, thus leading to the growth and success of the startup ecosystem.

Standup India Scheme Standup India scheme was announced on April 5, 2016, to finance new enterprises, to boost the entrepreneurship culture in India. The program ensures the availability of loans through the Scheduled Commercial Banks (SCBs), between ₹10 lakh and ₹1 crore to at least one member of the Scheduled Caste (SC) and Scheduled Tribe (ST), and at least one woman, per bank branch. The support in this new scheme is granted to businesses in the trading, services, or manufacturing sectors. This will supposedly help about 250,000 borrowers.

Key Objectives of Startup India

Making Business Easier: Simple rules, compliance, and legal steps.

Financial Help: Provide access to government funds and venture capital.

Building Skills: Offer training and mentorship programs.

Encouraging Innovation: Support research and development with grants.

Features of Startup India

Startup India Hub: This is a place where startups can connect with investors and mentors.

Fund of Funds for Startups (FFS): This is a ₹10,000 crore fund managed by the Small Industries Development Bank of India (SIDBI).

Tax Benefits: Eligible startups can get exemptions from income tax and capital gains tax.

Startup Recognition: Startups can receive official recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

The Startup India scheme eligibility criteria

If you want to get funding through the Start-up India scheme, you need to meet certain eligibility requirements. Knowing these requirements well will help you successfully go through the application process.

Business Experience: Start-ups applying for this scheme must have been operating for more than five years.
Age Requirement: Applicants must be at least 18 years old.
Company Structure: To get funds under this scheme, the company must be either a partnership or a private limited company.
Turnover Limit: The company should have an annual turnover of no more than Rs. 25 crore.
No Reconstruction: Start-ups that have emerged from the splitting or restructuring of an existing business are not eligible for this scheme. Companies that have divided an organization into two or more parts will be disqualified.

If a company is developing a new product or service, it can benefit from the Start-up India policy.

Here are the requirements:

The start-up must create, utilize, or sell a product or service that is based on new technology or intellectual property.
The focus should be on enhancing an existing product or developing a new one that adds value for customers or improves workflow.
The start-up must not engage in projects that are not unique or do not provide value to customers or enhance workflow.

To get a Startup India loan, start-ups must secure various approvals and submit specific documents:

Obtain approval from the Inter-Ministerial Board under the Department of Industrial Policy and Promotion (DIPP).
Acquire a recommendation from an incubator affiliated with a recognized post-graduate college.
Secure a recommendation from a government-recognized incubator.
File a patent for your product or service and have it published in the Indian Patent Office Journals.
If your services involve funding and equity, register with the Securities and Exchange Board of India (SEBI).
Provide a funding letter from any state or central government scheme that supports innovation.

How to Register Under Startup Under Startup India Scheme?

Step 1: Start Your Business

The first step in starting your business is to choose a legal structure, such as a Private Limited Company, Partnership, or Limited Liability Partnership (LLP). You will need to complete the standard registration process, which involves submitting an application and obtaining a Certificate of Incorporation or Partnership registration.

Step 2: Register with Startup India

Once you have created your business, the next step is to register it as a startup. This process is straightforward and can be completed online. First, visit the Startup India website and click the 'Register' button. Enter your name, email address, and mobile number, then create a password and click 'Register.' You will receive a One-Time Password (OTP) in your email. Enter this OTP and provide additional information, such as your user type, business name, and the stage of your startup. Finally, click 'Submit' to create your Startup India profile. Completing this registration will help your business be recognized as a startup under the Startup India scheme, granting you access to various benefits and support.

Step 3: Obtain DPIIT Recognition

After creating your profile on the Startup India website, the next step is obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition provides benefits such as quality intellectual property services, relaxed public procurement rules, self-certification for labour and environmental laws, simplified winding-up procedures, access to the Fund of Funds, and tax exemptions for three years.

Step 4: Submit the Documents for Registration

To complete the registration process and obtain DPIIT recognition for your startup, please submit the following documents:
1. The incorporation or registration certificate of your startup.
2. Proof of funding, if applicable.
3. An authorization letter from the company's authorized representative
4. Evidence of your concept, such as a website link, pitch deck, or video (this applies to startups at the validation, early traction, or scaling stage).
5. Information regarding any patents and trademarks you hold.
6. A list of any awards or certificates of recognition you have received.
7. Your Permanent Account Number (PAN).

Step 5: Self-Certification of Eligibility Conditions

You need to confirm that your business meets the following conditions:
1. Your business must be a Private Limited Company, Limited Liability Partnership (LLP), or partnership firm.
2. Your business has been registered in India for no more than five years.
3. Your company's turnover does not exceed ₹100 crore.
4. Your company is consistently innovating or improving existing systems.
5. Your business is based on an original idea, rather than a split or reorganization of an existing business.

Step 6: Obtain Your Recognition Number

When applying for registration, you will receive your recognition number immediately. The authority will send you the certificate of registration or incorporation after reviewing your uploaded documents. Ensure that you upload accurate information to avoid errors, as mistakes can lead to fines of up to 50% of your paid-up capital or a minimum of Rs. 25,000. By fulfilling the eligibility and registration requirements, your company can participate in the Startup India scheme and enjoy various benefits provided by the government.

Wrapping Up

The Startup India initiative has revolutionized the entrepreneurial landscape in India by offering financial, regulatory, and infrastructural support. If you’re an entrepreneur with an innovative idea, registering under this program can unlock numerous opportunities for growth and success. Begin your startup journey today and contribute to India’s transformation into a global hub for innovation.