Startup Registration Eligibility & Govt. of India Schemes

Posted On : July,31,2016Categories: law legal Patent & Trademark Trademark-Registration-Services

Important Schemes of the Start-up-

·       Startup Intellectual Property Protection (SIPP) –

·       Provide financial assistance  to protect Patent , Trade Marks .

·       Atal Innovation Mission (AIM)-

·       Establishment of incubators to nourish.

·       Entrepreneurship promotion through Self-Employment and Talent Utilization (SETU).

 

Eligibility for Start-up Registration-

1.    It must be an entity registered/incorporated as

a:Private Limited Company under the Companies Act.
b. Registered Partnership firm -Partnership Act, 1932; or
c. Limited Liability Partnership – Limited Liability Partnership Act, 2008- LLP.

2.    Five years must not have elapsed from the date of incorporation /

registration.

3. Annual turnover (as defined in the Companies Act, 2013) in any

preceding financial year must not exceed Rs. 25 crore .

3.    Startup must be working towards innovation, development,

deployment or commercialisation of new products, processes or services driven by technology or intellectual property.

4.    The Start-up must aim to develop and commercialise:-

a) a new product or service or process; or
b) a significantly improved existing product or service.

5.    The Start-up must not merely be engaged in:
a.     developing products or services or processes which do not have potential for commercialisation or

b.    undifferentiated products or services or processes; or
c.     products or services or processes with no or limited incremental value for customers or workflow .

 

6.    The Start-up must not be formed by splitting up, or reconstruction,

of a business already in existence.

 

7.    The Startup has obtained certification from the Inter-Ministerial

Board, setup by DIPP ( Department of Industrial Policy and Promotion ) to validate the innovative nature of the business, and

a. be supported by a recommendation (with regard to innovative nature     of business), in a format specified by DIPP, from an incubator     established in a PG college in India; or

b. be supported by an incubator which is funded (in relation to the project) from GoI or

c. be supported by a recommendation (with regard to

innovative nature         of business), in a format specified by DIPP, from an incubator recognized by GoI; or

d. be funded by an Incubation Fund/Angel Fund/Private Equity           Fund/Accelerator/Angel Network duly registered with SEBI that          endorses innovative nature of the business; or

e. be funded by the Government of India as part of any specified      scheme to promote innovation; or

f. have a Patent granted by the Indian Patent in areas affiliated with the           nature.

 

Process flow to get Registration of Start-up under Govt. of India-

Key Point of Start-ups-

A.  Single Window clearance even through Mobile App.

B.   Start-up Intellectual Property Protection (SIPP)

C.   Tax Exemption .

D.  Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 cr .

E.   Relaxation in Labour & Environmental Laws .

F.    Self Certification Complacencies .

G.  Innovation Hubs under Atal Innovation mission

H.  School Innovation Program – 5 lakh School /10 lakh Student .

I.      Faster Exit for Start-ups.
A.  Single Window clearance even through Mobile App.-

 

B.   To serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs & info exchange

C.    In order to commence operations, Startups require registration with relevant regulatory authorities.

D.  a checklist of required licenses covering labour licensing, environmental clearances etc. be made available on portal.

 

B. Start-up Intellectual Property Protection (SIPP)-

 

—  Appointment of Facilitator –Govt. of India has appointed Facilitator to help startup for –

—  Patent – for Drafting , filling , handling all matter to protect the Patents and Inventions of the new start-ups in India .

—  Trade Mark – for Drafting , filling , handling all matter to protect the trade marks and brand names .

—  Fees of the facilitator and Govt filling fee reimburse by the Govt. of India.

—  Subsidy up to  80 % –

—  For Patent and Trade mark – subsidy up to 80 % is granted by the Govt. of India to protect trade mark & Patent filed by the Start-ups  to protect the IPR’s of the Start-ups for any number of IPR  .

—   This project is for one year as pilot basis  only.

 

C. Tax Exemption-

—  Exemption From Capital  Gains Tax-

—  Currently investments by venture capital Funds in startup are exempt from this law.

—   Income tax exemption to startups announced for 3 years.

—  startup  initiatives are exempted from income-tax for a period of 3 year. This fiscal exemption shall facilited growth of business and meet the working capital requirements during the initial years of operations.

—  Tax exemption on investments above fair market value.

 

F.   Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 cr-

G.   Relaxation in Labour and Environmental Laws .

H.  Objective of compliance remine based on self certification  is to reduce the regulatory burden-

I.      Labour laws:

The  Building and Other Construction Workers (Regulation of Employment & conditions of Service )  Act. 1996

The  Inter-state  Migrant workmen (Regulation of employment & conditions of Service ) Act . 1979

The  payment of Gratuity  Act. 1972

The  Contract Labour (Regulation and Abolition ) Act.1970

The Employees Providen  funds and Miscellancous Provision Act. 1952

The Employees state Insurance Act. 1948.

J.      Environment Laws

The Water (prevention & Control Of Pollution ) Act.1974

The Water  (prevention & Control Of Pollution ) Cess (Amendment) Act. 2003

The Air  (prevention & Control Of Pollution ) Act. 1981

 

G. Innovation Hubs- Atal Innovation mission (AIM).

—  Self-Employment and Talent Utilization (SETU) –

—  Innovation promotion: to provide a platform where innovative ideas are generated.

—  Setting up of 35 new incubators in institutions.

—  set up scale up 31 centres.

—  Setting-up 13 startup centers Annual funding supports of INR 50 lakhs (shared 50-50by DS and MHRD) shall be provided for three years.

—  Setting-up scaling-up 18 Technology business incubators (TBIs ) at NITs IITs/IIMS ect.

—  Promote entrepreneurship  in biotechnology.

—  Five new bio cluters. 50 new bio incubators. 150 technology transfer officer and 20 boi connect offices will be established.

 

H. School Innovation Program – 5 lakh School /10 lakh Student .

—  Innovation core programs for students in 5 lakh schools.

—  NIDHI :  National initiated for Developing and unique Innovations , instituted through Innovation and Entrepreneurship Development Centers (IEDCs) to support and award INR 10 lakhs to 20 student innovations from IEDSc.

—  Uchhattar Avishkar yojana: A joint MHRD-DST scheme whice has carmarked INR 250 crore per annum .The funding towards this research will be 50% contribution from MHRD. 25% from DST and 25% from industry .

 

J.    Faster Exit for Start-ups.

 

Contact for more details and consultation –

 

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