16 May 2019, 14:01 — 4 min read
Background: The Startup India initiative was launched in the year 2016 to support the growing number of startups in India, which is estimated to be around 50,000 currently. The government recognises that in order to contribute effectively towards the economy, these startups need the proper resources to grow. From financial benefits, to registration and income tax benefits, the Startup India programme covers various aspects fundamental to the growth of a company. To understand the benefits of registration under Startup India, read this article by Navneet Dhiman.
‘Startup’ is a term used to define companies that are just getting off the ground and have a very high growth potential. These companies are initially supported by their entrepreneurial founders with an aim to develop a product which they believe can have a high demand in the market.
The Department of Industrial Policy and Promotion (DIPP) defines startup as a term which can be used for companies:
There are a lot of benefits for startups getting recognition under the Startup India programme:
1. Financial benefits
Under financial benefits, whenever a startup applies for a patent, the government will provide 80% rebate on patent costs and 50% rebate in filling trademark in case of private limited, LLP and Partnership companies. The government will also pay the fees of the facilitator and help startups obtain their patent. This way the patent registration and protection of Intellectual Property Rights (IPR) will become much easier.
2. Registration benefits
The government has launched a mobile app on 1 April 2016 which allows companies to register in a day. In addition to that, a single point of contact for queries has also been set up to tackle problems real time. A single window clearance for all clearances, approvals, and registrations, have been set up which will make the process easier for all.
3. Income Tax benefits
Startups are exempted from paying Income Tax for the first three years from the date of registration. A startup however needs to obtain a certificate from the Inter- Ministerial Board. A startup can also avail tax benefits on capital gains.
4. Other special benefits:
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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.
Posted byCS Navneet Dhiman
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