Start-up India recognition is indeed an excellent achievement for the emerging start-ups in India. Start-up India recognition scheme is no less than a blessing for those selected few start-ups or firms, which start their operation with a high aim to flourish in the country. Recently, the Government of India launched some new rules and regulations, policies and schemes to battle the economic crisis in India during the COVID-19 pandemic. These schemes have also been included for start-ups to bring about a new set of benefits for the emerging firms.
In this article, we have defined the start-up India scheme and the benefits that the start-ups can avail after getting recognition from Start-up-India body. We have also outlined the eligibility criteria for the firms to get the recognition from start-up India recognition body.
Start-up India Scheme: An Introduction
Start-up India is a flagship initiative of the Government of India intending to build a healthy start-up eco-system in the country. It aims to provide a secure platform for start-up businesses to operate in the country, thus reducing unemployment and dependency on foreign trade. Through this scheme, the government of India aims to encourage the start-ups to grow their products or services on a large scale based on innovation and design.
For example, recently RailMitra, a new start-up under the flagship of Yescom India Group of companies, got recognized from Start-up India. This brand is based on AI machine learning hence supporting the objective of Start-up India.
This initiative was launched in 2016 when the country had witnessed a mushrooming of the start-up culture in India.
The prime objective of this scheme is to make India a state of job providers instead of job seekers.
Eligibility Criteria to be Recognized by Start-up India Recognizing Body
Start-up India schemes intend to identify the start-ups in different segments, whether it is the service sector or manufacturing sector. To qualify as a recognized start-up, a firm needs to justify the following criteria:
- A firm has to be registered as a Pvt. Ltd. company in India.
- The Start-up has to be recognized within its ten years of incorporation.
- The turnover of the company should be limited to 100 Crores in its previous financial year.
- The Start-up shall function in innovation and betterment of a product or service.
- The start-up has a high potential to scale up its business with employment base and wealth creation.
Benefits of a Recognized Start-up
Registered start-up entities do not receive any direct funding benefits. However, there are several benefits provided for the recognized start-up under this scheme.
- Self-certification – The firms can self-certify themselves under three environmental and six labour laws. This program helps the start-ups to avoid the complexities of different authority bodies while dealing with statutes and regulations.
- Tax-benefits – The registered business entities are given a significant exemption over their regular taxes. The recognized bodies are freed up from filing the income tax for three consecutive years. Also, they are not liable to pay capital and investment up to start-up investment limits.
- Winding up assistance – It’s a very bitter truth of start-up culture that 90 per cent of the start-ups fail. In such a case, the winding process can be completed within 90 days for insolvency or bankruptcy.
- Start-up patent and IPR fees subsidy – Patent fee is returned up to 80% of the total charge to the recognized business bodies.
- Public procurement – There is no need for the start-ups to pay a fixed amount for the bidding of the government tenders or projects.
Above all, Start-up India recognition is itself a very prestigious certification that adds value to the start-up entities. To learn more about the start-up India registration, the entrepreneurs may visit the official website of start-up India. They can register their start-up firm on the site by providing the required details and get recognized.