India’s Key to Jumpstart Economy- The Benefits of Startup India Scheme
The Indian government has proven to be effectively adapting to the changes to help its economy move up. Proof of such are the government-instigated amendments in its Companies Act of 1956, which has had several legislative revisions. The latest one is the Companies Act of 2013.
The latest amendment of the Companies Act saw an influx of investments that provided the much-needed taxes for the government. Furthermore, it helped increase the employment opportunities for the local folks.
It was also the latest legislative change that introduced the Startup India initiative. The initiative marked a new era that saw India become one of the best countries for start-up businesses.
Simultaneous with the business boom is an opportunity to be employed or form part of the rapidly growing economic indigenous industries.
The advent of the Startup India Scheme also placed India in the third spot for the largest startup destination in the world.
As such, many must be wondering about the benefits of Startup India Scheme.
Triggering Entrepreneurs to Start-Up
Legitimate entrepreneurs would never get into something where they stand to lose, or at least break even. Most, if not all, look for the benefits of Startup India Scheme which is the centrepiece of India’s economic platform for an ecosystem promoting the entrepreneurial spirit.
Economic organizations, which have been doing separate studies on the benefits of Startup India Scheme, yielded a long list of advantages.
However, we would rather focus on six crucial benefits of Startup India Scheme.
Benefits of Startup India Scheme
Startup India scheme helps to develop and innovate products and services. It simultaneously provides more jobs to the rapidly growing population in India.
Benefits of Startup India Scheme include:
Startup India Scheme allows new businesses to avail of the simplified registration process which skips the need for stringent labour law compliances, without worrying legal repercussions. The government of India allows startups to self-certify. The provision also guarantees no inspection for the first three years. As if such leniency isn’t enough, startups may also avail of the Single Window Clearance from Mobile App that gives them an option to register via a single form. Furthermore, we can easily find the form in Startup India mobile application. This mobile app caters to clearances for approvals, registrations, filing compliances, etc.
Among the prominent benefits of the Startup India Scheme is a three-year tax-exemption. Investments of comparatively higher value than the prevailing market price are eligible to avail of the tax exemption for the first three years from the registration date. A startup company reaching a specified threshold limit also doesn’t need to pay tax under the scheme. However, the Startup India Scheme stipulates that the business should spend the tax savings on its development.
Registering patents is quite difficult and complicated amid stiff guidelines imposed on new businesses. But even then, newbies deemed as vulnerable to patent infringement, get fairly protected under the Startup India Scheme. With the Startup India Scheme in place, new businesses can be assured and protected against dubious attempts on its intellectual property. Under the Startup India Scheme, newbies automatically qualify to avail of fast-track examination of patent applications. They receive an 80% rebate of the total value of the patent fee.
Eased Public Procurement
Another benefit of the Startup India Scheme spares new companies from a government requirement for prior experience or requisite turnover. It makes it easier for startups to go for public procurement. With an eased public procurement, newbies may directly transact with governments and state-owned enterprises for a deal covering purchases of goods or availing of services from the private sector.
The state hosting investments, in this case, India, extend help to newbies under its Startup India Scheme. Support comes in two forms, incubator module and government tenders. The benefits of Startup India Scheme provide essential technical knowledge for startups. Aside from the technical knowledge, the scheme allows newbies to go into huge government projects offering higher monetary incentives. This is a privilege that usually only bigger corporations get. There is no need for prior experiences.
Network Exposure for Research and Innovation
Under the Startup India Scheme, newbies may hook-up with other start-up stakeholders every once in a while for an opportunity to secure funds, exchange of research and development data, or simply a place to learn for new innovations. Newbies need to gather twice a year – one involving local startups and the other embarking on international exposure.
Putting Things in Proper Perspective
Newbies wanting to avail of the benefits of Startup India Scheme should make no mistake about this though. While the government of India, through its implement agencies, is putting in place lenient business policies to entice more investors, its Ministry of Corporate Affairs has injected stiff provisions seen to guarantee a fraud-free sustained business climate.
Entrepreneurs are advised to consider the services of business setup experts in India if only to ensure effort and resources in forming a new company in India don’t go to waste.
The good thing though is that 3E Accounting in India has what it takes to deliver results. Embarking on a working attitude of excellence, efficiency and economy, forming a new business in India would not be as hard.
For more information, feel free to contact us.