Prime Minister Narendra Modi had last year promised at his Independence Day speech, that he would ensure a boost to the start-up culture in order to accelerate the rate of job creation and innovation in the country. He stood true to his words and launched the Startup India Standup India initiative, announced at an event at Vigyan Bhavan in New Delhi.
But first, what is defined as a startup?
A startup is an entity, incorporated or registered in India less than 5 years ago, with an annual turnover of up to Rs. 25 crore in any preceding financial year.
Here are 5 Promising Facts About Modi’s Startup India Campaign:
- Government to set up a Rs. 10,000 crore fund to provide funding to startups. With 90% of current startup funding coming from overseas parties, this is a step in the right direction.
- Three year income tax holiday for entities incorporated between April 2016 and March 2019.
- A mobile app will be created to help establish a startup in just one day. Self-certification will be possible via the app for compliance of 9 labour and environmental laws.
- Atal Innovation Mission will be founded to give impetus to innovation via 500 sector-specific incubator cells, along with an 80% rebate on filing of a patent application.
- No capital gain tax to be levied on personal property sold to invest in a startup.
Seems like a good time for startups to flourish in India! What are your views on this initiative? Comment and let us know.
