Concept of Start Up India
The young ignited minds will help build a better India. And that is exactly the inspiration drawn by Narendra Modi when he launched the Start-Up India Scheme. The aim was to take the country to a level where innovations will lead the youth to embark on a journey from “Job Seekers to Job Creators“. Thus, the end result would be a developed nation with a stable economy. The Start Up India Scheme states that if any Indian citizen shows potential entrepreneurship qualities by presenting an innovative idea that promotes development, they will get a monetary support from the Government of India.
What Is A Start Up and How Will It Be Eligible For Startup India Loan Scheme?
The eligibility criterions as set by the government of India for a Start Up Organization avail financial aid under Start Up India Loan Scheme is as follows:
- The organization must be independent and registered in India.
- It should not be formed after division, modification or close down of any previously present organization.
- The organization must not be an establishment older than five years.
- The turnover of the company should not be more than 25 Crores annually.
Action Plan For Start Up India Loan Scheme
The action plan for implementation of Start Up India Scheme will be in these areas:
- To provide technical guidance to a Start Up organization to simplify their working plan and if required modify their innovations to get better results.
- Support a Start Up organization with proper funding and provide good incentives.
- Involve a Start Up organization with Incubators and help them partner with well established Industrial and Academic Institutions.
Loan Value Under Start-Up India Scheme
The scheme, Start Up India was announced on 16th January 2016 and was officially launched on 1st April 2016. Under this scheme, if any organization with innovative ideas for development is considered as a “Start-Up” by the Government of India then a loan be extended to the organization. The amount of loan will range from 10 Lakhs to 100 Lakhs according to the requirement and set norms. Parallelly a scheme known as Stand Up India will be launched with similar facilities to promote entrepreneurship among women, SC/ST and Other Backward Classes.
Features Of Start Up India Loan Scheme
The key features of Start Up India Scheme are:
- The registration to apply for Start Up India loan will be done via online application forms.
- A system to self-certify a Start Up has been introduced.
- To provide proper online support a web domain and a mobile app will be developed which will be dedicated to the Start Up organization.
- The organization will not be inspected for the initial three years.
- Exemption from Income Tax for the first three years.
- Innovation promoting courses will be started under the Atal Innovation Mission.
An important point to note while applying for Start Up India is that the Start Up organization will be exempt from tax deductions unless it gets a certification from Inter-Ministerial Board.
Startup India: Registration Procedure
All aspirants who wish to register for the Startup India Scheme must follow either of the two options:
- An individual can register himself or herself via a MCA or through Registrar of Firms. Simultaneously they have to register themselves officially on the web portal of Startup India.
- The second option is to make the complete application through the Startup India mobile application. Though mostly it is recommended that this mobile application process is followed as it is an easier one. Registering via MCA or Registrar firms had to be done previously as the mobile app was not built.