If you have an innovative idea,then why not?
Ok so what is a Startup?
The Startup should be a:
a) Private limited company or
b) Registered Partnership firm or
c) Limited liability partnership
· The company should be newly incorporated and should not be formed by splitting up or reconstruction of an existing business.
· Turnover should be less than INR 100 Crores in any of the previous financial years.
· An entity shall be considered as a startup up to 10 years from the date of its incorporation
Now that I know what is a Startup,what are the various benefits that one get from it?
Let us understand each benefit deeply:
1.Self certification:Startups shall be allowed to self-certify (through the Startup mobile app) with 9 labour and environment laws (refer below). In case of the labour laws, no inspections will be conducted for a period of 3 years. Startups may be inspected on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer:
The Startups may self-certify compliance in respect of following Labour Laws:
Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
| The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
|
The Payment of Gratuity Act, 1972
| The Contract Labour (Regulation and Abolition) Act, 1970 |
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
| The Employees’ State Insurance Act, 1948
|
In order to self-certify compliance, you may log on to ‘Shram Suvidha Portal’.
2.Patent Application & IPR Protection:The startupindia website has a list of many IPR partners and facilitators which makes the process fast track and cost friendly.
3.Income Tax Exemption:The Inter-Ministerial Board setup by Department of Industrial Policy and Promotion validates Startups for granting tax related benefits. The board shall validate startups for the Income Tax Exemption on profits under Section 80-IAC of Income Tax Act:
A DIPP recognized Startup shall be eligible to apply to the Inter-Ministerial Board for full deduction on the profits and gains from business. Provided the following conditions are fulfilled:
· A private limited company or a limited liability partnership,
· Incorporated on or after 1st April 2016 but before 1st April 2021, and
· Start-up is engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation.
To apply for Income Tax Exemption on investments above fair market value received under Section 56 of Income Tax Act:
A Startup shall be eligible for notification under clause (ii) of the proviso to clause (viib) of sub-section (2) of section 56 of the Act and consequent exemption from the provisions of that clause, if it fulfils the following conditions:
· It has been recognised by DPIIT under para 2(iii)(a) or as per any earlier notification on the subject
· Aggregate amount of paid up share capital and share premium of the startup after issue or proposed issue of share, if any, does not exceed, twenty five crore rupees
4.Easier Public Procurement Norms:A startup can register on Government E-Marketplace(GeM portal)and start selling their goods and services to the Government.But this facility is open to all.What extra is there for Startup on Gem Portal??
5.Easy winding up of company:Due to any reason if you want to close your company,you can now easily get it done within 90 days under Insolvency and Bankruptcy Code.
6.Other Government Schemes:Also there are more than 125 government schemes which are provided by Government to startup.The same are industry specific in most of the cases.
So if you are thinking to open a Startup don’t wait .Give it a try.Let the results be the deciding factor.