The start-up India scheme is an exemplary scheme launched on 16th January 2016, by the Prime Minister Mr. Narendra Modi, and is a significant accelerator for the start-up community. The scheme intends at wealth creation through self-employment and growth of indigenous businesses in India.
Here are some of the most prominent benefits of the scheme:
TAX EXEMPTIONS AND BENEFITS
Many small business and start-ups are unaware that per the Start-up India Action Plan, the startups/small business that meet the government definition as prescribed under G.S.R. notification 127 are eligible to apply for tax breaks.(click here- https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/198117.pdf to check if you qualify)
Under section 80-IAC, any start-up that registers itself under the scheme from 1st April 2016 to 31st march 2021, can avail tax exemption of three years in a block of seven years. Over 90 start-ups have already signed up and are availing the tax benefits, check your eligibility here – https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/198117.pdf or get in touch with tax consultants to know more.
Once you register for the scheme, you could also avail benefits under Section 56 of the Income Tax Act (Angel Tax). Click here https://www.startupindia.gov.in/content/sih/en/Form-56.html to make your declaration or reach out to a tax consultant for guidance.
A VARIETY OF LOAN/ CREDIT SCHEME BENEFITS
The objective of the government initiative is to smoothen the credit evaluation processes and help the eligible applicant gets access to necessary funds faster.
Funds can be used for a variety of purposes like business expansion, equipment purchase, technology up-gradation, and more. Here are some of the many loan scheme under the start-up scheme umbrella, that you can opt for:
- The Venture Capital Scheme: The scheme is pioneered by the Ministry of Agriculture and Farmers Welfare, and aims to support agripreneurs. The scheme intends to help agripreneurs with the necessary investments, to set up agribusiness projects. Click here to check your firm’s eligibility to apply for this interest-free loan https://www.startupindia.gov.in/content/sih/en/government-schemes/venture-capital-scheme.html#34902480769615657-0
- Stand-Up India for Financing SC/ST and/or Women Entrepreneurs: A pioneering scheme from the Small Industries Development Bank of India (SIDBI), aims to uplift the SC/ST and women entrepreneurs across the country. The scheme (through nationalized banks) offers loans ranging from 10 lakh and 1 crore for a business that is owned by Scheduled Caste (SC), Scheduled Tribe, or a woman. Firms across the manufacturing, services, and trading business are eligible to apply for the loan. In case, the firm is a non-individual enterprise, the scheme mandates at least 51% of the shareholding and controlling stake with either an SC/ST candidate or a woman entrepreneur. The loan is available only for green-field projects, more details available on a dedicated government portal here-https://www.standupmitra.in/
- Coir Udyami Yojana (CUY): Brainchild of the coir board, the scheme is a credit-linked subsidy scheme offered to the firms that intend to set up coir units. The scheme aims to facilitate sustainable development of the Coir Industry in India. Read more on the eligibility and details of the scheme here https://www.startupindia.gov.in/content/sih/en/government-schemes/coir_udyami_yojana.html
- Pradhan Mantri Mudra Yojna: The scheme by the government of India, intends at the development of the micro-enterprise sector in the country.
The loans can be available up to Rs. 10,00,000, and most commonly do not need collateral as additional security. The loans are a popular choice across the set-up stages (inception, growth, and expansion). Click here https://www.startupindia.gov.in/content/sih/en/government-schemes/micro-units-development-refinance-agency.html for eligibility details.The loans are extended mainly for :
- Business loan for Vendors, Traders, Shopkeepers, and small services businesses
- Equipment financing for small units
- Working capital loan through MUDRA Cards
- Transport Vehicle loans
5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): The scheme is conceptualized and run by the Small Industries Development Bank of India (SIDBI) and Ministry of Micro, Small and Medium Enterprises. The scheme intends to offer collateral-free credit to the micro and small enterprise sector. The scheme is open to both greenfield projects and already operating businesses. All MSMEs working in the manufacturing and service space except educational institutions, agriculture, self Help Groups (SHGs), training Institutions are eligible to apply for the scheme. Click to know more on the eligibility- https://www.startupindia.gov.in/content/sih/en/government-schemes/cgtsme.html
Many who are planning to start a firm worry that registration and incorporation of the business may be cumbersome and time-consuming. However, you could enroll under start-up India scheme, and make the process simpler and less time-consuming. The government of India offers a lot of help under the scheme, including arranging a meeting at the start-up India hub. The scheme enables easy registration through a single problem-solving window for the entrepreneurs, making the process simple and convenient.
KNOWLEDGE SHARING AND NETWORKING
The government websites load quickly and are designed keeping the users’ convenience in mind. You get access to all the latest information, blogs and scheme when you log into the website. You could also get in touch with tax and planning experts to make the best use of all resources available to hand.
For a start up, we understand that a lot of information can seem overwhelming. Which is why we specialize in startup related compliance and can seamlessly support all your requirements related to compliance, finance and legal. Get in touch with us : [email protected] | 044-46315959