Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design.

Only an entity which is registered as a Private Limited Company or a Limited Liability Partnership (LLP) or a Registered Partnership Firm can get recognition under Startup India Scheme. Further, such startup must be involved in the activities towards innovation or improvement in existing products or services, and must be capable of generating employment or wealth creation.

Start Up India Incentives

Tax Exemption to Startups for 3 years. With a view to stimulate the development of Startups in India and provide them a competitive platform, it is imperative that the profits of Startup initiatives are exempted from income-tax for a period of 3 years

Easy Funding via tax exemption on Capital Gains. Due to their high risk nature, Startups are not able to attract investment in their initial stage. It is therefore important that suitable incentives are provided to investors for investing in the Startup ecosystem. With this objective, exemption shall be given to persons who have capital gains during the year, if they have invested such capital gains in the Fund of Funds recognized by the Government. Also tax exemption on Investments above Fair Market Value has been provided to investors to encourage seed-capital investment in Startups.

Credit Guarantee Fund for Startups. To catalyse enterpreneurship by providing credit to innovators accross all sections of society.

Relaxed Norms of Public Procurement for Startups. In order to promote Startups, Government shall exempt Startups (in the manufacturing sector) from the criteria of “prior experience/ turnover” without any relaxation in quality standards or technical parameters.

Compliance Regime based on Self-Certification. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and environment laws (refer below). In case of the labour laws, no inspections will be conducted for a period of 3 years.

Legal Support and Fast-tracking Patent Examination at Lower Costs.

Faster Exit for Startups. This will promote entrepreneurs to experiment with new and innovative ideas, without having the fear of facing a complex and long-drawn exit process where their capital remain interminably stuck.

Documents Required

Certificate of Incorporation / Registration Certificate and PAN

Email ID and Mobile number

Company Details ( Industry, Sector, Category, Regd. Office Address etc)

Directors/Partners Details ( Name, Photo, Gender, Mobile No. Email ID, Full Address)

Details of Authorised Representative ( Name, Designation, Mobile No. Email ID)

A Brief about business and products/services and notes on innovations

Revenue model and Uniqueness of the Product

Website/Pitch Deck/Video/Patent ( anyone)