India has been positioned in 3rd place when it comes to the startup ecosystem of the country. The funds that Indian startups are raising is increasing enormously every single year. Start-up organizations are budding companies that are just beginning to develop. 2019 was a huge year for the Indian startups which came forward with different ideas and innovations which had swept India. Government of India’s funding has been a key benefit for the young entrepreneurs in India. The Indian government has launched several programs and plans so that the government can boost up or assist the initial startup firms.
Benefits of Startup India Scheme
1. Simple process
The Indian Government has initiated a mobile app and a website for easy registration for startups within a day. People who are interested in setting up a startup can fill up asimple form on the website and upload certain documents. The process is completely online.
2. Reduction in cost
The government also issues lists of facilitators of patents and trademarks. They will impart high quality Intellectual Property Right Services including fast examination of patents at lower fees. The government is supposed to bear all facilitator fees while the startup will bear only the statutory fees. They will experience an 80% reduction in cost of filing patents.
3. Easy access to Funds
A 10,000 crore rupees fundis put up by the government to provide funds to the startups as venture capital. The government is also giving guarantee to the lenders to boost up the banks and other financial institutions for providing venture capital.
4. Tax holiday for 3 Years
Income tax exemption is available for startups for 3 years provided, they get a certification from Inter-Ministerial Board (IMB).
5. Apply for tenders
They canapply for government tenders. Startups are spared from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.
6. R&D facilities
Seven new Research Parks will be launched to provide space to startups in the R&D sector
7. No time-consuming compliances
Various compliances have been clarified for startups to save time and money. Startups shall be allowed to self-certify.
8. Tax saving for investors
People who are investing their capital gains in the venture funds setup by the government will get exemption from capital gains. This will attract more investors.
Startup Incubation Centers
1. Techno Park:
Techno Park is one of the oldest incubation centers in the entire nation which is located in Kerala. They have focused on investing technology based startups. It was founded in 2007.
2. Villgro:
Villgro is an incubator center which is situated in Chennai. Their primary focus was to invest in social impact based startups. Villgro was set up by the department of science and technology.
3. Amity innovation incubator:
Amity innovation incubator was founded in 2008 in Noida. This incubator focuses on rural innovation and social entrepreneurship. Information and communication technologies, education technology, food and allied technology, biotechnology and life science etc… funding Up to INR 1 Cr
4. AngelPrime:
AngelPrime located in Bengaluru aims at startups in the middle needing seed capital, it invests in not more than 3-4 companies a year. It was founded in 2011 and focused on mobile internet, ecommerce and tablet mobile apps. Funding USD 200K- 600K
5. CIIE IIMA:
This incubator was set up by IIM Ahmedabad with support from the Government of India and Gujarat Government and operates through an autonomous not for profit entity. CIIE includes IIMA faculty, alumni and other individuals and partners with like-minded organizations to foster entrepreneurship through incubation, ecosystem development and academic initiatives. The focus area of CIIE IIMA is Information Communication Technology, Cleantech and Social funded with INR 20 lakhs
6. IAN Incubator:
IAN incubator was launched from the support of NSTEB (National Science and Technology Entrepreneurship Development Board), DST (Department of Science and Technology), and government of India. The focus areas are Gaming and Animation,IT/ITES, Telecom, Internet/Web, Mobile VAS, Education technology, Media and Entertainment, Manufacturing Products, Healthcare technology, Alternative Energy, Clean Technology, Cloud computing, Retail technology
State wise startup ranking
In the second edition of the Department for Promotion of Industry and Internal Trade’s states’ startup rankings, Gujarat has hold on to its best performer tag in the competition which had a participation of 22 states and three union territories.
- Best Performer: Gujarat , Andaman & Nicobar Islands (UT)
- Top Performers: Karnataka and Kerala
- Leaders: Bihar, Maharashtra, Odisha, Rajasthan, Chandigarh
- Aspiring Leaders: Haryana, Jharkhand, Punjab, Telangana, Uttrakhand
- Emerging Startup Ecosystem: , Assam, Delhi, Madhya Pradesh, Himachal Pradesh, Sikkim, Chhattisgarh Tamil Nadu, Uttar Pradesh. Andra Pradesh
Conclusion
Start-up is not an easy way to pass, but those people with passion to work hard and dedication, who are not agitated of accepting challenges and who are not averse to taking the risk should go for it. The startups are benefited in such a way that a lot of opportunities are flying around.
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