Prime Minister Narendra Modi launched the Startup India campaign in Delhi on January 16. At the event, the PM unveiled the Startup Action Plan. The main aim of this plan is to boost and help the growth of entrepreneurship at the grassroot level. Talking about the campaign, the PM said “I had spoken about Startup India from the ramparts of the Red Fort and today we are seeing what this is about, “Start up does not mean billion dollar company where thousands of people work. It is about employing even 5 people & developing India”.
The Prime Minister then went on to talk about the importance of the movement and that the campaign is not merely guided by money or name & fame. The purpose is beyond that. He said “Success of startups is not only about enterprise. It is also about risk taking and adventure too”.
Few of the highlights of the campaign are as follows
- There will be no inspection for three years of start-up businesses in respect of labour, environment law compliance post self-certification
- Self-certification based compliance system will be established in respect of nine labour and environment laws introduced for start-up business.
- There will be an 80 percent reduction in patent fee for start-up businesses.
- The government also announced that there will be a dedicated fund with Rs 10,000 crore corpus which will be mainly for funding of start-ups.
- Start-ups will now get a three-year income tax holiday.
- Capital gains tax will now be exempted for venture capital investments.
- Besides starting a venture, it is also difficult to quit a startup, the campaign aims to make the exit process also an easy one.
- A startup India hub will be launched, which will be the single point of contact.
- The government will also launch a mobile app to start a startup in one day. The app will have a small application form that can be easily filled for your registration.
- Government will introduce a scheme to make filing patents easier
- Modi said that India is lacking in IP (intellectual property), but has abundant YP (youth property). There is a need to bring them on a single plane.
- Government is working on facilitating free patent filing. On January 16, patent fee was reduced by 80 per cent.
- Norms of public procurement for start-ups will be more relaxed
- The government will introduce a bill in the Parliament that will help startups to exit in 90 days, if the need arises.
- A credit guarantee fund for startups.
- Tax exemption on investments above fair market value.
- Core innovation programmes in 5 lakh schools.
- A startup fest to be started soon.