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Start Up India

"Start Up India - Stand Up India" scheme was announced by Prime Minister Shri Narendra Modi in his Independence Day speech in 2015. The scheme was launched on 16th January 2016.

What is a Start Up – A business will be considered a Start Up if it fulfils the following conditions -

1. For ordinary Start Up within 7 years of its registration / incorporation date and for Start Ups in Biotechnology sector up to 10 years.
2. Registered as a Private Limited Company or Partnership Firm or limited liability partnership.
3. Turn over not more than 25 crores in any financial year.
4. The unit should not have been made by restructuring or bifurcation of old business.
5. Should be a scalable business model for generation of employment or money which is innovative, and for improvement in products, processes or services.

Benefits for Start Ups -

1. Exemption from income tax on profits for first three years of operations.
2. Exemption from 20% capital gains tax on sale of property.
3. There is a proposal to make a National debt guarantee trust in which a annual budget allocation of Rs 500 crores will be done for the next four years.
4. 80% rebate on patent registration fees.
5. Easy exit options under bankruptcy laws so that exit is possible within 90 days.
6. Innovation courses for students with focus on 10 lakh children in 5 lakh schools.
7. Self-attestation will to allowed to reduce regulatory burden.
8. Initial fund of Rs 2500 crores for financial assistance to Start Ups which will be increased to 10000 crores in the next 4 years.
9. Many exemptions in the rules for government procurement from Start Ups. Exemption from the requirement of experience in government contracts.
10. Special provisions for women.

Reasons for failure of Start Ups in India – According to an estimate 90 out of 100 Start Ups fail. The main reasons for this are -

1. Large number of similar Start Ups in the market.
2. Start Ups without assessing the demand in the market.
3. Unable to manage expansion.
4. Lack of good employees.
5. Lack of talent.