What is the start-up India scheme?

The Start-up India scheme was initiated by the Central Government on 16th January 2016 to boost entrepreneurship in India. It aims to offer easy financing options for start-ups in the country as these entities may face difficulty accessing formal loans. The scheme provides funding between Rs. 10 lakh and Rs. 1 crore to SC, ST, and women entrepreneurs. However, considering the strict criteria, it is likely that many won’t qualify under the scheme. In such cases, another viable option is the Bajaj Finserv Loan Against Property.

With this instrument, borrowers can avail funding up to Rs. 10.50 crore* to fund all types of business expenses. The loan has several features including a flexible tenor that ranges up to 15 years, a competitive interest rate, the minimal requirement for documentation, simple criteria, and quick disbursal within 72 hours* of approval. To access funds with this offering, meet the eligibility criteria, submit the documents, and apply online.

The Start-up India scheme eligibility criteria

For budding entrepreneurs to avail funding under the Start-up India scheme, meeting the criteria put in place is important. Here is a detailed breakdown of the eligibility criteria for the Start-up India scheme.

  • Vintage: A start-up applying for this scheme should have a business vintage of more than 5 years.
  • Age: Individuals applying for this scheme must be over the age of 18 years.
  • Company type: To apply under this scheme, a company should be a partnership or a private limited firm.
  • Annual turnover: To be eligible under this scheme, a company should not have a yearly turnover of more than Rs. 25 crore.
  • It must not be a reconstructed company: Start-ups applying for this scheme should not be a result of splitting or reconstruction of a business. A company formed out of splitting an organisation into two or more businesses are not eligible to apply for this scheme.
  • Involved in a new product or service: Companies working towards the development of a new product or service are eligible to avail of benefits under the Start-up India policy. The conditions that they must fulfil are:
  • Concerned start-ups must work to develop, deploy, or commercialise any product or service that is driven by the latest technology or intellectual property.
  • Start-ups must aim to improve an existing product or create a new one that can enhance value for the customers or enhance workflow.
  • Start-ups must not be involved in developing and commercialising a product that is not unique without any scope of enriching the value for customers or increasing workflow.
  • Registrations and approvals: Start-ups are required to possess the following approvals and documents to avail of a start-up India loan
  • Start-ups are required to obtain approval from the Inter-Ministerial board under the Department of Industrial Policy and Promotion (DIPP).
  • Recommendation of an incubator from any post-graduation college.
  • Recommendation from an incubator recognised by the Central Government.
  • A patent filed and published in Journals of Indian Patent Office in the specific area of product or service.
  • Registration under Securities and Exchange Board of India (SEBI) for start-ups providing funding and equity services.
  • Funding letter from the state government or central government of any scheme to promote innovation.
  • Partnership share
    For partnership start-ups, 51% of the shares should be owned by a woman or individuals belonging to the Scheduled Caste (SC) and Scheduled Tribe (ST) categories. They should not have defaulted on any credit payments.

Terms and conditions applied *

Frequently asked questions

Is startup India tax free?

Startup India offers tax benefits and incentives to eligible startups, which may include income tax exemptions, capital gains tax exemptions, tax benefits for investors, deductions for interest payments, and reduced tax rates on royalties. These benefits are subject to specific conditions and criteria, and startups must meet eligibility requirements, such as recognition by DPIIT, to avail of these incentives.

What are startup India benefits?

Startup India offers several benefits to support startups, including income tax exemption, capital gains tax exemption, reduced patent registration fees, relaxed public procurement norms, expedited company winding-up processes, innovation support, access to funds, simplification of regulations, networking opportunities, and recognition and certification for eligible startups. These benefits are designed to foster entrepreneurship, innovation, and the growth of startups.

What is the concept of the startup India scheme?

The ‘Startup India’ scheme, initiated by the Indian government in 2016, aims to promote entrepreneurship and innovation in the country. It provides recognition and support to startups by simplifying registration processes, offering tax benefits, encouraging funding, and protecting intellectual property. Additionally, it promotes public procurement from startups and offers various learning and development initiatives. The scheme is geared towards fostering economic growth, job creation, and innovation in India's startup ecosystem.

What are the benefits of the startup India scheme?

The Startup India scheme offers several advantages to startups, including tax exemptions, simplified compliance processes, access to funding, intellectual property protection, opportunities for public procurement, and a dedicated hub for government interaction. It also promotes learning, innovation, and early-stage funding to support the growth and development of startups in India.

What is the Start-up India Scheme, and how does it support new businesses?

The Start-up India Scheme is an initiative by the Government of India launched in 2016 to foster the growth of start-ups across the country. It aims to create a conducive environment for start-up development, offering various benefits such as tax exemptions, funding opportunities, and simplification of regulatory processes. The scheme provides financial support, mentorship, and access to networks to encourage innovation and job creation in the start-up ecosystem.

How can a start-up avail tax benefits under the Start-up India Scheme?

Start-ups registered under the Start-up India Scheme can avail various tax benefits. They are eligible for a three-year income tax exemption, provided they are incorporated between April 1, 2016, and March 31, 2021, and satisfy the criteria set by the Department for Promotion of Industry and Internal Trade (DPIIT). Additionally, start-ups can benefit from a simplified assessment process and exemption from the "angel tax" on funding received from accredited investors.

What support does the Start-up India Scheme offer for intellectual property protection?

The Start-up India Scheme facilitates the protection of intellectual property for start-ups through the Intellectual Property Rights (IPR) facilitation cell. Start-ups can avail a rebate in the filing of patents, trademarks, and designs. The government aims to promote innovation by reducing the financial burden on start-ups seeking protection for their intellectual property. The scheme also provides legal assistance and guidance to start-ups in navigating the complexities of intellectual property rights.

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