Page 40 - Banking Finance August 2022

ARTICLE

written to make an overview of promotion & development as per the "Industry-Academic Partnership and Incubation"
of startups in India, discuss a live success startup case and of the Startup India initiative, the Government has
examine issues and suggestions. announced plans for the development of "Research Parks"
to be created in partnership with higher education providers
How to set up a Startup: across India.

To get recognized as a Start-up business under the Startup
An initial investment of Rs.100 crore, has also been set aside
India Scheme, the firm must fulfill certain conditions. These
for the program, which aims to provide students with access
include: (i) The firm to be formed must be a private limited
to funds and mentorship for startups. Further, the
company or a limited liability partnership. (ii) It should be a
'Innovation in Mobile App Development Ecosystem (I-MADE)'
new firm or existing firm not older than five years and, its
program was rolled-out in February 2016 which aims to
total turnover is not exceeding Rs. 25 crores. (iii) The firm
create mobile app startups in collaboration with leading
should have obtained approval from the DIPP. (iv) To get the
Indian universities. More importantly, the 19-point Startup
same, it should be funded by an Incubation Fund, Angel Fund
India Action Plan was launched in January 2016 which focuses
or Private Equity Fund. (v) The firm should have obtained a
on restricting hindrances and promoting faster growth by
patron guarantee from the Indian Patent and Trademark
way of: (i) Simplification and Handholding (ii) Funding
Office. (vii) It must have a recommendation letter by an
Support & Incentives and, (iii) Industry-Academic
incubation center and, (ix) The firm must provide innovative
Partnership and Incubation.
schemes or products. The application along with supporting
documents including Certificate of Incorporation should be
As per the Startup India web-site, the Government
submitted to the Start-Up India Hub which will review &
grant recognition as a Startup and issue a Certificate of incentives include:
Recognition. (i) Self Certification regarding fulfillment of conditions
related to environment and pollution clearances.
After receiving the necessary recognition as Startup, the (ii) No inspection for the first 3 years
next step is to go in for Registration. For this, it has to obtain
(iii) Mobile app registration just in one day
PAN of the firm by preparing a brief write-up covering details
of recognition received, how to generate revenue and (iv) Startup India hub in a single point contact
business plan to solve problems. To promote and develop (v) 80 per cent rebate on patent filing fees
startups, they are eligible to receive liberal support in the
(vi) 35 public/private incubators being in existence
form of incentives from the Government which are discussed
(vii) 31 Innovation centers being set up at national
as under:
institute
Government Incentives to Startups: (viii) 3 new bio clusters and 7 new research parks being
created 500 tinkering labs also available
Incentives are offered by the Government under different
programmes. To elaborate, Make in India' Vision was
introduced in September 2014 to attract foreign
investments and encourage domestic companies to
participate in the manufacturing sector. Thereafter, the
Government increased the foreign direct investment (FDI)
limits for most of the sectors and strengthened Intellectual
Property Rights (IPRs) as protection to instill confidence in
the startups. Another commendable and far reaching
initiative has been 'Digital India', introduced in 2015, is
expected to ensure that the government services are made
available to citizen through online platform that aims to
connect rural areas by developing their digital infrastructure
to provide huge business opportunity for startups. Similarly,

40 | 2022 | AUGUST | BANKING FINANCE