START-UP INDIA

1) Start-up India

Start-up India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start-ups with jobs creation. The campaign was first announced by Prime Minister Narendra Modi in his 15 August 2015 address from the Red Fort. It is focused on to restrict role of States in policy domain and to get rid of "license raj and hindrances like in land permissions, foreign investment proposal, environmental clearances. It was organized by Department of Industrial Policy and Promotion (DIPP). A start- up is an entity that is headquartered in India which was opened less than five years ago and has an annual turnover less than Rs. 25 crore (US$3.7 million). The government has already launched iMADE, an app development platform aimed at producing 1,000,000 apps and PMMY, the MUDRA Bank, a new institution set up for development and refinancing activities relating to micro units with a refinance Fund of Rs. 200 billion (US$3.0 billion).

The Stand-up India initiative is also aimed at promoting entrepreneurship among SCs/STs, women communities. Rural India's version of Start-up India was named the Deen Dayal Upadhyay Swaniyojan Yojana. To endorse the campaign, the first magazine for start- ups in India, The Cofounder, was launched in 2016.

Key Points

·          Single Window Clearance even with the help of a mobile application

·          10,000 crore fund of funds

·          80% reduction in patent registration fee

·          Modified and more friendly Bankruptcy Code to ensure 90-day exit window

·          Freedom from mystifying inspections for 3 years

·          Freedom from Capital Gain Tax for 3 years

·          Freedom from tax in profits for 3 years

·          Eliminating red tape

·          Self-certification compliance

·          Innovation hub under Atal Innovation Mission

·          Starting with 5 lakh schools to target 10 lakh children for innovation programme

·          New schemes to provide IPR protection to start-ups and new firms

·          Encourage entrepreneurship.

·          Stand India across the world as a start-up hub

Government Role

The Ministry of Human Resource Development and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such start-up support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIPERs). The Reserve Bank of India said it will take steps to help improve the ???ease of doing businesses in the country and contribute to an ecosystem that is conducive for the growth of start-up businesses

Action Plan

Start-up India: The Prime Minister of India, Shri Narendra Modi had this year in his Independence Day speech announced the ???Start-up India??? initiative. This initiative aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups. The objective is that India must become a nation of job creators instead of being a nation of job seekers. The Prime Minister of India will formally launch the initiative on January 16, 2016 from Vigyan Bhawan, New Delhi. The event will be attended by a vast number of young Indian entrepreneurs (over 2000) who have embarked on the journey of entrepreneurship through Start-ups.

As a key component of this ???Start-up India??? launch, Government of India is organizing a global workshop on ???Innovation and Start-ups??? on January 16, 2016 . Shri Narendra Modi, Prime Minister of India will be the Chief Guest on the occasion. This workshop aims to provide a platform to bring together all stakeholders, stimulate dialogue on key challenges that the Indian innovation ecosystem currently faces, and provide the potential solutions to address them. Fostering a fruitful culture of innovation in the country is a long and important journey. This initiative will go a significant way in reiterating Government of India???s commitment to making India the hub of innovation, design and Start-ups.  

START-UP INDIA

2) Steps to Starting a Business

Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 10 easy steps can help you plan, prepare and manage your business. Click on the links to learn more.

Step 1: Write a Business Plan

Use these tools and resources to create a business plan. This written guide will help you map out how you will start and run your business successfully.

·          Define your vision: What will be the end result of your business?

·          Define your mission: Different to a vision, your mission should explain the reason your company exists.

·          Define your objectives: What are you going to do -- what are your goals -- that will lead to the accomplishment of your mission and your vision?

·          Outline your basic strategies: How are you going to achieve the objectives you just bulleted?

·          Write a simple action plan: Bullet out the smaller task-oriented actions required to achieve the stated objectives.

Step 2: Get Business Assistance and Training

Take advantage of free training and counselling services, from preparing a business plan and securing financing, to expanding or relocating a business.

Step 3: Choose a Business Location

Get advice on how to select a customer-friendly location and comply with zoning laws.

Step 4: Finance Your Business

Find government backed loans, venture capital and research grants to help you get started.

Step 5: Determine the Legal Structure of Your Business

Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, non-profit or cooperative.

Step 6: Register a Business Name ("Doing Business As")

Register your business name with your state government.

Learn which tax identification number you'll need to obtain from the IRS and your state revenue agency.

Step 7: Register for State and Local Taxes

Register with your state to obtain a tax identification number, workers' compensation, unemployment and disability insurance.

Step 8: Obtain Business Licenses and Permits

Get a list of federal, state and local licenses and permits required for your business.

Step 9: Understand Employer Responsibilities

Learn the legal steps you need to take to hire employees.

Step 10: Find Local Assistance

Contact your local SBA office to learn more about how SBA can help. 

START-UP INDIA

3) Start-up Resources

There are a number of available programs to assist start-ups, micro businesses, and underserved or disadvantaged groups. The following resources provide information to help specialized audiences start their own businesses.

·          Environmentally-Friendly "Green" Business

·          Home-Based Business

·          Online Business

·          Self-Employment

·          Minority Owned Business

·          Veteran Owned Business

·          Woman Owned Business

You can save money when starting or expanding your business by using government surplus. From commercial real estate and cars, to furniture, computers and office equipment, find what you need for your business in one place any entrepreneurs were excited by the announcements made by Prime Minister Narendra Modi as part of the start-up India Action Plan. There is no doubt the measures were significant, but they do beg the question, are all the start-ups really eligible for the benefits that were announced?

Here is a quick analysis of the eligibility criteria (please note that the following flow chart is specifically applicable for start-ups seeking tax exemption):

In addition, for a start-up to be recognized as one,

1.       It must be an entity registered/incorporated as a:

o    Private Limited Company under the Companies Act, 2013; or

o    Registered Partnership firm under the Indian Partnership Act, 1932; or

o    Limited Liability Partnership under the Limited Liability Partnership Act, 2008.

2.       Five years must not have elapsed from the date of incorporation/registration.

3.       Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.

4.       Start-up must be working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.

5.       The start-up must aim to develop and commercialise:

o    a new product or service or process; or

o    a significantly improved existing product or service or process that will create or add value for customers or workflow.

6.       The start-up must not merely be engaged in:

o    developing products or services or processes which do not have potential for commercialisation; or

o    undifferentiated products or services or processes; or

o    products or services or processes with no or limited incremental value for customers or workflow

7.       The start-up must not be formed by splitting up, or reconstruction, of a business already in existence.

8.       The start-up has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business, and

o    be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator established in a post-graduate college in India; or

o    be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or

o    be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator recognized by GoI; or

o    be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or

o    be funded by the Government of India as part of any specified scheme to promote innovation; or

o    have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

* DIPP may publish a negative list of funds which are not eligible for this initiative.

START-UP INDIA

4) Registration of Start-up

Option 1: An entity can register itself through MCA or Registrar of Firms using the existing processes and subsequently register itself on the Start-up India portal and mobile app as a Start-up to avail the benefits.

Option 2: An entity can register itself through the Start-up India portal and mobile app using a seamless process. This facility would be made available in the second phase of the Start-up India portal and mobile app launch.

1.       Log in to Start-up India Portal

2.       Choose your legal entity

3.       Input your incorporation/registration number

4.       Input your incorporation/registration date

5.       Input PAN number (optional)

6.       Input your address with postal code & state

7.       Input authorized representative details

8.       Input director(s)/partner(s) details

9.       Choose and upload supporting documents and self-certification

10.   Incorporation/registration certificate of company/LLP/Partnership

11.   Registration to avail tax and IPR

12.   Certify the official notification terms and conditions