Centre going all out to promote startups by increasing eligibility to 7 years and 10 years for biotech

May 26, 2017

So here’s some good news finally on the Government of India front. The Centre has increased the age of businesses qualifying as startups eligible for benefits under the Startup Indian Action Plan,  from five years to seven years. So the exemptions, hand holding and the three year tax holiday can be used by startups up to seven years from their date of registration. Your revenue limit must be within Rs 25 crore.

Even better news for biotech startups. Their time has increased to 10 years.

To obtain tax benefits, a startup should obtain a certificate of an eligible business from an inter- ministerial board of certification as constituted by the Department of Industrial Policy and Promotion (DIPP). Oh, and do not provide false information – the DIPP can and will cancel your registration without any notice.

To promote growth and help Indian economy, many benefits are being given to entrepreneurs establishing startups.

  1.  Simple process

Government of India has launched a mobile app and a http://www.startupindia.gov.in/ portal for easy registration for startups. Anyone interested in setting up a startup can fill up a simple form on the website and upload certain documents. The entire process is completely online

2.  Reduction in patent filing costs

The government also provides lists of facilitators of patents and trademarks. They will provide high quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will bear all facilitator fees and the startup will bear only the statutory fees. They will enjoy 80% reduction in cost of filing patents

3.  Easy access to Funds

A 10,000 crore rupees fund is set-up by government to provide funds to the startups as venture capital.  The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.

4.  Tax holiday for 3 Years   

Startups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).

5.  Apply for tenders

Startups can apply for government tenders. They are exempted from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.

  6.  R&D facilities

Seven new Research Parks will be set up to provide facilities to startups in the R&D sector

7.  No time-consuming compliances

Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws (for list of white industries which are eligible under self-compliance.

8.   Tax saving for investors

People investing their capital gains in the venture funds setup by government will get exemption from capital gains. This will help startups to attract more investors

9.  Choose your investor

After this plan, the startups will have an option to choose between the VCs, giving them the liberty to choose their investors.

10.  Easy exit

 In case of exit – A startup can close its business within 90 days from the date of application of winding up

11.  Meet other entrepreneurs

Government has proposed to hold 2 startup fests annually both nationally and internationally to enable the various stakeholders of a startup to meet. This will provide huge networking opportunities.

So if  you are tired of your job, tired of hunting for a job, you could think of being your own boss. Take your pick of some of the Green List enterprises you could opt for:

Aluminium utensils

Ready mix cement concrete

Ayurvedic medicines

Reprocessing of waste cotton

Small Bakery /confectionery

Rice mill (Rice hullers only)

PP film

Rolling mill (gas fired) and cold rolling mill

Biomass briquettes

Rubber goods (gas operated baby boiler)

Melamine resins

Saw mills

Brass and bell metal utensils

Soap manufacturing

Candy

Spice Blending

Cardboard / corrugated box

Spice grinding

Carpentry & wooden furniture

Steel furniture

Li Cement products

Grains processing

Ceramic colour by mixing

Tyres /tube retreading

Chilling plant and ice making

Chilling /ice plant

Coke briquetting

CO2 recovery

Small Cotton spinning and weaving

Distilled water

Dal Mills

Small Hotels

Decoration of ceramic cups

Optical lenses

Digital printing on PVC clothes

Mineralized water

Handling, storage of food grains

Tamarind powder

Flour mills

Marble stone

Electrical Glass , ceramic, earthen potteries

Emery powder

Glue from starch

Flyash export

Gold and silver smithy

Mineral stack yard

Non-polluting Heat treatment

Oil and gas transportation pipeline

Insulation /coated papers

Seasoning of wood

Leather foot wear /products

Synthetic detergent

Blending of Lubricating oil, greases

Tea processing Pasted veneers

Pulverization of bamboo

Oil mill

Puffed rice (muri) (gas or electrical heating)

Packing materials

Phenyl/toilet cleaner

Polythene and plastic products

Poultry, Hatchery and Piggery

Power looms (without dye and bleaching)

Air coolers /conditioners

Bicycles ,baby carriages

Bailing of waste papers

Bio fertilizer /bio-pesticides

Biscuits trays

Blending / packing of tea

Block making of printing

Chalk making

Compressed oxygen gas

Cotton and woolen hosiers

Diesel pump repairing

Electric lamp (bulb) and CFL

Electrical and electronic item

Engineering and fabrication units

Flavoured betel nuts

Fly ash bricks! block

Fountain pen

Glass ampules

Glass putty and sealant

Ground nut decorticating

Handloon carpet weaving

Leather cutting and stitching

Coir items from coconut husks

Metal caps containers etc

Shoe brush and wire brush

Medical oxygen

Organic and inorganic nutrients

Organic manure

Packing of powdered milk

Paper pins and u clips

Repairing of electric motors /generators

Rope (plastic and cotton)

Scientific and mathematical instrument

Solar module non-conventional energy apparatus

Solar power generation through solar photovoltaic cell, wind power and mini hydel power (less than 25 MW)

Surgical and medical products assembling

If there is a long line outside any government department of young and healthy people - they are all hopeful of getting the one position advertised. (Pic courtesy Goa Prism)
If there is a long line outside any government department of young and healthy people – they are all hopeful of getting the one position advertised. (Pic courtesy Goa Prism)