Have you started a business in last 10 years? If yes, here is an opportunity to get host of benefits under the Startup India initiative. Eligible businesses can get recognised as Startups by DPIIT, in order to access various tax benefits, easier compliance, IPR fast-tracking & more. Read below post to know, how your business can get benefitted?
Startups shall be allowed to be self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure. In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.<\/p>\n\n\n\n
Labour Laws:
The Building and Other Constructions Workers\u2019 (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\u2019 Provident Funds and Miscellaneous Provisions Act, 1952
The Employees\u2019 State Insurance Act, 1948<\/p>\n\n\n\n
In the case of environment laws, startups which fall under the \u2018white category\u2019 (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases<\/p>\n\n\n\n
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<\/p>\n\n\n\n
Beside these Labour Law and Environmental Law benefits, businesses registered under Start Up India recognition will get benfits of <\/p>\n\n\n\n
Access to Financial Fund: <\/strong>Startups registered under Start Up India have the leverage to access up to 20 Lakhs under seed stage funding and up to 50 Lakhs under growth stage funding<\/p>\n\n\n\n Fast-tracking of Startup Patent Applications:<\/strong> Patent applications filed by startups shall be fast-tracked for examination so that their value can be realised sooner.<\/p>\n\n\n\n Panel of facilitators to assist in filing of IP applications: <\/strong>For effective implementation of the scheme, a panel of \u201cfacilitators\u201d shall be empanelled by the Controller General of Patents, Designs and Trademarks (CGPDTM), who shall also regulate their conduct and functions. Facilitators will be responsible for providing general advisory on different intellectually property as well as information on protecting and promoting intellectual property in other countries.<\/p>\n\n\n\n Government to bear facilitation cost: <\/strong>Under this scheme, the Central Government shall bear the entire fees of the facilitators for any number of patents, trademarks or designs that a Startup may file, and the Startups shall bear the cost of only the statutory fees payable.<\/p>\n\n\n\n Rebate on filing of application: <\/strong>Startups shall be provided an 80% rebate in filing of patents vis-a-vis other companies. This will help them pare costs in the crucial formative years Memorandum of Association for Pvt. Ltd. \/ LLP Deed Opportunity to list your product on Government e-Marketplace:<\/strong> Government e Marketplace (GeM) is an online procurement platform and the largest marketplace for Government Departments to procure products and services. DPIIT Recognized Startups can register on GeM as sellers and sell their products and services directly to Government entities. This is a great opportunity for startups to work on trial orders with the Government.<\/p>\n\n\n\n Exemption from Prior Experience\/Turnover:<\/strong> In order to promote startups, the Government shall exempt Startups in the manufacturing sector from the criteria of \u201cprior experience\/ turnover\u201d without any compromise on the stated quality standards or technical parameters. The Startups will also have to demonstrate requisite capability to execute the project as per the requirements and should have their own manufacturing facility in India. Click Here<\/a><\/strong> to refer to the notification<\/p>\n\n\n\n
Eligible startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation. Documents required for registration<\/p>\n\n\n\n
Board Resolution (If Any)
Annual Accounts of the startup for the last three financial years
Income Tax returns for the last three financial years<\/p>\n\n\n\n
Exemption under Section 56(2)(VIIB) of Income Tax Act:<\/strong><\/p>\n\n\n\n\n
Important to note that :
Startup is not Investing in specified asset classes
Startup should not be investing in immovable property, transport vehicles above INR 10 Lakh, Loans and advances, capital contribution to other entities, except in the ordinary course of business
Direct Link to register for Section 56 Exemption<\/a><\/strong> <\/li>\n<\/ul>\n\n\n\n