Benefits of Startup India Scheme
Startups will be able to self-certify their adherence to nine labour and environmental laws. According to labour laws, no inspections will be conducted for a period of three years.
This will reduce the regulatory burden on startups while also lowering compliance costs.
2. A DIPP recognized startup that has been granted an Inter-ministerial board certificate is exempted from income tax on the profits and gains for three consecutive years.
This will manage the startup's working capital requirements during the first few years
3. A startup can leave the market within 90 days from the date of application of winding up.
4. The registration process for establishing a startup is now simple. For registration, the government has created a mobile app and a website. Fill out a form and upload the necessary documents, and the process is complete.
5. The government provides high-quality intellectual property rights services, as well as quick patent examination and lower fees.
6. Startups are exempt from the prior experience and turnover requirements when applying for government contracts. Departments, ministries, and public sector undertakings (PSUs) of the Government of India have been authorised to relax startup regulations.
7. The government has established a venture capital fund worth 10,000 crore rupees. SIDBI manages this fund, which is used to support the development of innovative businesses. In addition, the government is encouraging banks and financial institutions to increase venture capital.
8. Investors who invest their capital gains in the government-created venture fund are exempt from capital gains taxes. This is an appealing method of attracting more investors for startups.