Every budding entrepreneur was eagerly awaiting PM Narendra Modi’s Startup policy.The Startup India event brought about a positive vibe into the ecosystem. It was exciting to see that the government pulled out all stops and put up a great show. It was a good initiative by the government which finally noticed the revolution in Indian entrepreneurial sector. Now government is not calling its youth a job seeker any more but addressing them as job creators.
Addressing the gathering during the Startup India and Standup India event, Modi announced certain policies benefiting new entrepreneurs. Entrepreneurs have welcomed these initiatives with open hands and are expecting that these policies will fuel growth for Indian startups.
1. Now run your own business with ease:
Government’s Startup policy has made entrepreneurs happy and has given them a chance to celebrate. With the help of this policy, entrepreneurs no more need to run behind government officials to start their own business.
“Ease of starting a company, regulatory compliances and self certifications will ensure that startups can run hassle free without government interference. As part of Ease of Doing Business, the single window mechanism, can help new entrepreneurs in smooth functioning of business,” said Anurag Jain, Co-founder & COO, Girnar Soft.
2. No Capital Gains tax for startups:
Relaxation on Capital Gains for funds is the biggest, including exemption from capital gains when one has the ability to raise capital over Fair Market Value."Income and Capital Gains Tax exemptions are game changers. One can expect India giving Silicon Valley run for its money over the next three decades. Government’s announcements are enormously positive in potentially making India (replacing USA) as the country that leads and drives future innovation in the world," said Vijay KG, Founder, Luxepolis.
3. Single point access:
Startup India hub will now provide entrepreneurs a single point of access to communicate or go ahead. This can also be done via mobile app. This single point access will ease the process of startups to work.
4. Special schemes for women entrepreneurs:
It has always been a tall task for women to start their own business. Women entrepreneurs are doing good in the entrepreneurial ecosystem and if they are given proper support than they would excel in this field. Government has now come into action as it has declared that there is a special scheme for the women entrepreneurs also on their card.
5. Bringing sector-specific incubators:
Another thing which has made these mushrooming entrepreneurs happy is the incubation centres. Government in its Startup policy has declared that it will bring sector-specific incubators for the budding startups. This will enable startups to incubate more properly with sector specific knowledge.
6. Startup profits not taxable for first three years
Startups are always worried about tax. After the inception, if they get profit, even of minimal amount, they have to pay tax on the same. In a major relief for entrepreneurs, the government announced that the profit generated by start-ups will not be taxable for the first three years. Now entrepreneurs can focus more on their business without worrying about the tax part.
7. Patent fees for startups to be slashed by 80 per cent
To support and protect intellectual property rights of budding entrepreneurs, PM Narendra Modi on Saturday said that the patent fees for startups will be cut by 80 per cent. While addressing the gathering at Startup India, Standup India event, Modi said, "Patent fee for startups will be reduced by 80 per cent. India's future lies in innovation and creativity. Newcomers should get equal opportunities." Further startups will be helped through facilitation centres by lawyers to file patents without any charges.
8. Rs 10,000 cr fund for startups @ 2500 cr each year for the first 4 years:
To help startups get funding support, Modi has announced the setting up of a dedicated fund of Rs 10,000 crore to provide both equity and debt support, with Rs 2,500 crore each year for the first four years.
Government’s efforts are sounding good to every entrepreneur and they are also accepting these initiatives with a big smile on their faces but time will only tell that how far these policies will benefit the Indian startups. What should follow is the real action to get these policies get off the ground.