Page 39 - Banking Finance May 2022

ARTICLE

written to make an overview of promotion & development of the Startup India initiative, the Government has
of startups in India, discuss a live success startup case and announced plans for the development of "Research Parks"
examine issues and suggestions. to be created in partnership with higher education providers
across India.
How to set up a Startup:
An initial investment of Rs.100 crore, has also been set aside
To get recognized as a Start-up business under the Startup
India Scheme, the firm must fulfill certain conditions (2). for the program, which aims to provide students with access
to funds and mentorship for startups. Further, the
These include: (i) The firm to be formed must be a private
'Innovation in Mobile App Development Ecosystem (I-MADE)'
limited company or a limited liability partnership. (ii) It
program was rolled-out in February 2016 which aims to
should be a new firm or existing firm not older than five
years and, its total turnover is not exceeding Rs. 25 crores. create mobile app startups in collaboration with leading
Indian universities. More importantly, the 19-point Startup
(iii)The firm should have obtained approval from the DIPP.
(iv) To get the same, it should be funded by an Incubation India Action Plan was launched in January 2016 which focuses
Fund, Angel Fund or Private Equity Fund. (v) The firm should on restricting hindrances and promoting faster growth by
have obtained a patron guarantee from the Indian Patent way of: (i)Simplification and Handholding (ii) Funding
and Trademark Office. (vii) It must have a recommendation Support & Incentives and, (iii) Industry-Academia
letter by an incubation center and, (ix) The firm must Partnership and Incubation.
provide innovative schemes or products.
As per the Startup India web-site, the Government
incentives include:
The application along with supporting documents including
i) Self Certification regarding fulfillment of conditions
Certificate of Incorporation should be submitted to the Start-
related to environment and pollution clearances.
Up India Hub which will review & grant recognition as a
Startup and issue a Certificate of Recognition. After receiving ii) No inspection for the first 3 years
the necessary recognition as Startup, the next step is to go iii) Mobile app registration just in one day
in for Registration. For this, it has to obtain PAN of the firm
by preparing a brief write-up covering details of recognition iv) Startup India hub in a single point contact
received, how to generate revenue and business plan to v) 80 per cent rebate on patent filing fees
solve problems. To promote and develop startups, they are vi) 35 public/private incubators being in existence
eligible to receive liberal support n the form of incentives
from the Government which are discussed as under: vii) 31 Innovation centers being set up at national institute
viii) 3 new bio clusters and 7 new research parks being
Government Incentives to Startups: created 500 tinkering labs also available
Incentives are offered by the Government under different ix) Patent regime to be simplified
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,
as per the "Industry-Academia Partnership and Incubation"

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