Start-up India is a start-up scheme based in India. This government program provides a wide variety of benefits to up and coming entrepreneurs. As well as large government loans, you will also receive many other benefits.
These include help with registering your business, plus assistance and discounts in patenting any products or inventions your business may have created. Your start-up will also receive priority and assistance when it comes to government tenders. Not only that, but you also have special protection against bankruptcy and will be exempt from inspection for three years.
Most importantly, you will receive income tax benefits, which is a big advantage for any new business.
As you can see this is an incredible program and can be the key to getting your start-up launched and being successful. But while this is a wonderful program, it isn’t available to everyone. These are strict requirements and also a vetting process.
Who is eligible for Start-up India?
In order to qualify for this program, you will have to meet the following requirements.
- The start-up company must be a private limited company or a limited liability partnership firm. No other legal entities are allowed. For example, if you want to qualify for this program you can’t have a sole proprietorship or closed corporation.
- Your start-up idea must be approved by the Department of Industrial Policy and promotion. This is a special government department which was created in 2019. Its purpose is to promote the development of India’s industrial sector. It is also responsible for facilitating investment in the economy, more specifically start-up and foreign investment. The reason why you start-up has to be approved by this agency is because they have to investigate if it is actually a worthwhile idea, and actually has a chance of being successful.
- In order to qualify you have to have a letter of recommendation from a start-up incubator. This is probably the most difficult hurdle for entrepreneurs. Basically, it means that you have to already have made contact with a start-up incubator and have been accepted by them. You will need to prove your idea to the incubator and work closely with them until they can see that your idea has legs, and has a reasonable chance of success. Only then will you be able to receive a letter of recommendation from them.
- Your start-up needs to provide innovative ideas or products. The unfortunate truth is that this scheme isn’t for any ordinary business. They want something spectacular. You need to have an incredible business idea or a truly innovative product. Something that can change the world or help millions of people. If you’re planning on selling food at the market you probably won’t qualify.
- Your start-up need to be new. They are not looking for fund established businesses. Which means that your start-up cannot be older than five years.
- They also don’t want businesses which are already making money. The turnover of your start-up should not be more than 25 Crores.
- Finally, your start-up must be new. It cannot be made up of a business which has been split up or redeveloped.