Start-up India Scheme

  • Start-up India Scheme of Ministry of Commerce & Industry launched on 16thJanuary 2016, consists of 19 Action Points that act as a guiding document for the initiative.
  • Government of India has established Fund of Funds for Startups (FFS) with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. Since its inception, 19,351 Startups across the country have been recognised as on 24.06.2019.
  • Salient features of Startup India action plan
      1. Compliance Regime based on Self-Certification:  to reduce the regulatory burden on Startups and compliance at low cost.
      2. Startup India Hub:  single point of contact for the entire Startup ecosystem for funding.
      3. Rolling out of Mobile App and Portal: single platform for Startups for interacting with Government and Regulatory Institutions for all business needs
      4. Legal Support and Fast-tracking Patent Examination at Lower Costs: promote awareness and adoption of IPRs by Startups and facilitate them in protecting including fast-track examination of patent applications and rebate in fees.
      5. Relaxed Norms of Public Procurement for Startups : equal platform to Startups across sectors with experienced entrepreneurs/ companies in public procurement.
      6. Faster Exit for Startups : with an objective to make it easier for Startups to wind up operations.
      7. Providing Funding Support through Fund of Funds with a Corpus of RS. 10,000 crore with an objective to provide funding support for development and growth of innovation driven enterprises.
      8. Credit Guarantee fund for Startups : with objective to catalyze entrepreneurship by providing credit to innovators across all sections of society.
      9. Tax Exemptions on Capital Gains:  with an objective to promote investments into Startups by mobilizing the capital gains arising from sale of capital assets.
      10. Tax Exemptions to startups for 3 Years with an objective to promote the growth of Startups and address working capital requirements.
      11. Tax Exemption on Investments above Fair Market Value with an objective to encourage seed-capital investment in Startups.
      12. Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform with an objective to galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.
      13. Launch of Atal Innovation Mission (AIM) :  a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities.
      14. Harnessing Private Sector Expertise for Incubator Setup : ensure professional management of Government sponsored / funded incubators, Government will create a policy and framework for setting-up of incubators across the country in public private partnership.
      15. Building Innovation Centers at National Institutes with an objective to propel successful innovation through augmentation of incubation and R&D efforts.
      16. Setting up of 7 New Research Parks Modelled on the Research Park Setup at IIT Madras with an objective to propel successful innovation through incubation and joint R&D efforts between academia and Industry.
      17. Promoting Startups in the Biotechnology Sector with an objective to foster and facilitate bio-entrepreneurship.
      18. Launching of Innovation Focused Programs for Students with an objective to foster a culture of innovation in the field of Science and Technology amongst students.
      19. Annual Incubator Grand Challenge with an objective to support creation of successful world class incubators in India.