Page 14 - Mega Digi Page: General Awareness - Jan 2016
P. 14
www.bankersguru.org
(General Awareness)
Prime Minister Narendra Modi sought to infuse more energy into India’s start-up ecosystem
with a bouquet of initiatives.
Here's what changed for India's startup ecosystem –
A Rs. 10,000 crore fund for startups
The government will set up a fund initially of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore
over a period of four years. The fund will participate in the capital of SEBI registered venture funds,
and invest in sectors such as manufacturing, agriculture, health, and education.
A single point of registration for startups
The government will launch a mobile app and a portal on April 1, which will enable startups to
register their company in a day.
The portal will also serve as a single point of contact for clearances, approvals and registrations, and
for companies to apply for schemes under the Start-up India Action Plan.
A simplified regulatory regime based on self-certification
To reduce the regulatory burden for startups, the government will allow startups to self-certify
compliance on nine labour and environment laws through the startup mobile app.
No inspections will be conducted in case of the labour laws for a period of three years.
A fast-track mechanism filing patent applications
Launched on a pilot basis for a year, the Central Government shall bear the cost of patents,
trademarks and designs for a startup, with an 80 percent rebate to encourage the creation and
protection of its intellectual property.
A credit guarantee fund for startups
A credit guarantee mechanism will help startups raise debt funding through the formal banking
system through National Credit Guarantee Trust Company (NCGTC)/SIDBI, which has an
annual corpus of Rs. 500 crore for the next four years.
Tax exemption for three years, and capital gains
Aimed at facilitating growth and help retain capital, startups will be exempted from income-tax for
a period of three years.
However, the exemption shall be available subject to non-distribution of dividend by the startup.
To augment the funds available to various VCs and alternative investment funds, capital gains
invested in SEBI registered venture funds will be exempt from tax as well.
Date of Release -19-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
Prime Minister Narendra Modi sought to infuse more energy into India’s start-up ecosystem
with a bouquet of initiatives.
Here's what changed for India's startup ecosystem –
A Rs. 10,000 crore fund for startups
The government will set up a fund initially of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore
over a period of four years. The fund will participate in the capital of SEBI registered venture funds,
and invest in sectors such as manufacturing, agriculture, health, and education.
A single point of registration for startups
The government will launch a mobile app and a portal on April 1, which will enable startups to
register their company in a day.
The portal will also serve as a single point of contact for clearances, approvals and registrations, and
for companies to apply for schemes under the Start-up India Action Plan.
A simplified regulatory regime based on self-certification
To reduce the regulatory burden for startups, the government will allow startups to self-certify
compliance on nine labour and environment laws through the startup mobile app.
No inspections will be conducted in case of the labour laws for a period of three years.
A fast-track mechanism filing patent applications
Launched on a pilot basis for a year, the Central Government shall bear the cost of patents,
trademarks and designs for a startup, with an 80 percent rebate to encourage the creation and
protection of its intellectual property.
A credit guarantee fund for startups
A credit guarantee mechanism will help startups raise debt funding through the formal banking
system through National Credit Guarantee Trust Company (NCGTC)/SIDBI, which has an
annual corpus of Rs. 500 crore for the next four years.
Tax exemption for three years, and capital gains
Aimed at facilitating growth and help retain capital, startups will be exempted from income-tax for
a period of three years.
However, the exemption shall be available subject to non-distribution of dividend by the startup.
To augment the funds available to various VCs and alternative investment funds, capital gains
invested in SEBI registered venture funds will be exempt from tax as well.
Date of Release -19-Jan-16 SUBJECT: GA www.bankersguru.org
