Just five months after announcing the Startup India initiative, Prime Minister Narendra Modi unveiled a plan of action on January 16. He made the historic speech in the presence of some of the biggest global names in start-ups, along with venture capitalists, angel investors and budding entrepreneurs.
“People who have achieved success are not just entrepreneurs but also adventurous. Success of entrepreneurs depends on their ability to take risk,” he said.
Here are key highlights of the action plan that is aimed at boosting the growth of Startups in India:
1. Startups will be given an exemption from income tax on profits earned in the first three years, and inspections regarding labour laws will not be conducted in this period
2. The compliance regime will be based on self certification, which means startups can self certify in case of labour and environmental laws, resulting in reduced regulatory burden
3. The registration process will be simplified, as startups can register by filling a form on an online platform or a mobile app
4. Procurement of IP rights will be more transparent for startups, as examination and disposal of patent applications will be handled by a fast track mechanism, to enable startups to realise IPR value quickly
5. A panel of facilitators will be set up to assist startups in filing patent applications related to trademarks and design, and patent registration costs will be reduced by 80%
6. Startups will be exempted from criteria of prior experience and turnover while bidding for government contracts, in order to provide an equal platform
7. Provisions for fast tracking closure of business will be included in The Insolvency and Bankruptcy Bill 2015, so that startups can exit within 90 days of filing an application for winding up business, making the process easier
8. A credit guarantee fund of Rs 500 crore per year will be set up to enable innovators in all sectors to take up entrepreneurship through credit
9. A startup India hub will be set up, which will act as a single point of contact for the entire startup ecosystem in India, and an app will allow startups to interact with the government and regulatory authorities
10. To ensure growth of innovation-driven startups, a fund with an initial corpus of Rs 2500 crore and a total corpus of Rs 10000 crore will be set up
The speech also had a personal touch with PM Modi saying, “When I heard Ritesh (Oyo) speak, I thought how a tea seller like me didn’t think of setting up a hotel chain.”
All images sourced from PTI