A startup or start-up is started by individual planners or entrepreneurs to search for an extensible business model. Precisely, a startup is a newly emerged business venture that aims to develop a viable business model to finally meet a marketplace need or problem. Founders design startup to effectively develop and validate a scalable business model. Start-ups refer to new businesses that intend to grow beyond the individual, have employees, and intend to grow large. It seems like start-ups face high uncertainty and do have high rates of failure. But the minority that goes on to be successful companies have the potential to become large and influential. Above all to make startup grow more, the government of India has introduced some great schemes. Therefore, we need to learn about the facilities available to these Start-ups.
Hence, I’m creating a list of Schemes that you can check out if you want to give wings to your startup:
Startup Scheme 1: Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Started By: Ministry Of Electronics and Information technology
Support For: MSMEs and Technology Startup units
AIM: To sharpen and create IP awareness.
Availability: The scheme is valid up to 30.11.2019.
Startup Scheme 2: Software Technology Park (STP) Scheme
Scheme Benefits & Highlights
# Approvals are given under single window clearance scheme.
# A company can set up STP unit anywhere in India.
# Jurisdictional STPI authorities clear projects costing less than Rs.100 million with Indian Investment.
# 100 Percent Foreign Equity is permitted.
# All the imports of Hardware & Software in the STP units are completely duty free, import of second hand capital goods also permitted.
# Re-Export of capital goods is also permitted.
# Simplified Minimum Export Performance norms i.e., “Positive Net Foreign Exchange Earnings”
# Use of computer system for commercial training purposes is permissible subject to the
# Condition that no computer terminals are installed outside the STP premises.
# The sales in the Domestic Tariff Area (DTA) shall be permissible up to 50 Percent of the export in value terms.
# STP units are exempted from payment of corporate income tax up to 2010.
# The capital goods purchased from the Domestic Tariff Area (DTA) are entitled for benefits like exemption of excise Duty & reimbursement of Central Sales Tax (CST).
# Capital invested by Foreign Entrepreneurs, Know-How Fees, Royalty, Dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any
# The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt of a State or Union Territory without payment of any duties after two years of their import.
# 100 Percent Depreciation on Capital Goods over a period of five years.
Startup Scheme 3: Multiplier Grants Scheme (MGS)
Under this scheme, if the startup industry supports Research and Development of products that can be commercialized at Institution level, then the Indian government will also provide financial support that is up to twice the amount provided by the industry.
The Scheme is valid until 31st March 2020 with a total amount for the investment of Rs 36 Cr and DeitY (Department of Electronics and Information Technology) contribution of Rs 24 Cr.
This is mainly useful for startups in the field of Research and Development.