It was a common curiosity of every budding entrepreneur when PM Narendra Modi talked about the upcoming Indian Startup Policy in “Mann Ki Baat”. The whole nation was keenly waiting for 16th of January when the curtain raiser was planned.
The Start-Up India, Stand-Up India Movement event brought about a positively encouraging feel into our ecosystem. It was really motivating to see Indian Government pulling out all stops and putting up a great show for entrepreneurs.
Overall a great initiative taken by the government which ultimately noticed the uprising of the entrepreneurial sector in our country. And now it’s the first time in history when the government is addressing its youth as Job Creators, rather calling them Job Seekers.
PM Narendra Modi addressed the crowd during the Start-Up India, Stand-Up India Event and announced some new policies that will eventually benefit new startups. Indian Entrepreneurs have warmly welcomed these initiatives with open hands and are anticipating that such policies will boost up the growth for upcoming startups in India.
In my previous article on Start-UP India, Stand-Up India, I discussed about the prime objectives of the Movement; today we will list down some key points that entrepreneurs like about PM Modi’s Startup Policy 2016.
# 1: No Capital Gains Tax for startups
Relaxation and Exemptions from Capital Gains for funds are truly the biggest benefits that give entrepreneurs an opportunity to raise the Startup Capital over Fair Market Value.
The founder of Luxepolis, Mr. Vijay KG quotes on this, “Income and Capital Gains Tax exemptions are the game changers in Indian Markets. You can actually see India making Silicon Valley run for money over the next thirty years.”
In fact, Government’s declarations are extremely positive and seemingly helping India replace the USA as a country that leads and drives imminent innovation in the world.
#2: Rs. 2,500 Crores to be issued as Startup Fund every year for the first 4 years
Another great policy that was announced to help new startups get funding support, is setting up of an exclusive fund of Rs 10,000 crore to provide both equity and debt support. The amount is to be allocated as Rs 2,500 crore each year for the first four years starting 2016.
These efforts of Indian Government initially sound too good and every entrepreneur is accepting these initiatives with a big smile on his /her face; yet it is still impossible to tell, how far these policies are going to benefit the Indian startups. What can be followed right now, is the real action to support these policies get off the ground.
#3: No Tax on Startup Profits for first 3 years
Taxes have always been the tension for Startups. Once the business is launched and they start making profits (even of minimal amount), they have to pay certain taxes on their revenue.
It was really a major relief for Indian Entrepreneurs when the government announced that the profit made by startups will be free from any taxes for the first three years which means now you can focus more on your business and leave the worries about the taxation, at least for next three years.
#4: Sector-Specific Incubators
Another great policy which has made mushrooming entrepreneurs quite happy is the integration of Incubation Centers. As declared in the Startup Policy by the Government, multiple Sector-Specific Incubators will be brought into the system for the growing startups which will enable them to nurture properly with the knowledge specific to their sector.
#5: Reduced Patent Fees for Startups
In order to protect and support the Intellectual Property Rights of budding Indian entrepreneurs, PM Narendra Modi has confirmed that the patent fees for any startups will be slashed by 80%.
While addressing the youth in Start-Up India, Stand-Up India Event, he further said that the future of the country lies in Innovation and Creativity and that’s why all newcomers should also get equal opportunities.
Upcoming startups will also be benefitted by the Facilitation Centers where they can take help from certified lawyers to file patents without paying any charges.
#6: Ease of running business with Single-Point Access
It is really a time to celebrate for Indian Entrepreneurs. With the help of Government’s new Startup policy, now there is no more need to run behind Government Officials if you want to start your own business.
The Co-Founder and COO of Girnar Soft, Mr. Anurag Jain happily quoted on this, “The ease of starting your company, regulatory compliances and self-certifications will make sure that startups now can run without a hassle and without the interference from Government.”
Startup India Hub will provide entrepreneurs a single point of access to communicate with relevant authorities. The Single Window Mechanism (also available through the Mobile App), will ease the smooth functioning of business.
#7: Special Arrangements for Women Entrepreneurs
In India, it has always been a huge task for women to start their own business. Although, if you can see the history of entrepreneurial ecosystem worldwide, women entrepreneurs are doing good and can excel with proper support given.
Indian Government has now realized the potential and come into action by announcing that there are some special schemes for women entrepreneurs on their card.