The startups scene in India is now red hot, as evidenced by a NASSCOM report which reveals that the funding pouring into this segment has increased to $4.9 billion last year. This is 125% more compared to $2.2 billion the year before that, and also higher than the cumulative funding of $3.2 billion over the last five years. The total number of active investors has also grown 2.3x to 490 last year. The most heartening aspect of this startup wave is the average age of the entrepreneurs, which makes India the youngest startup nation in the world.
Everyone wants to help startups now. Startup incubators and accelerators, including Evoma, have packages that make it easy for startups to begin small and grow fast.
Visit www.Evoma.com to find out the advantages for entrepreneurs like you to start and grow your business at an Evoma Business Centre in Bangalore.
The Karnataka Govt. has just released its new startup policy, and Karnataka is also the first state in India to announce the establishment of first dedicated startup cell (in KBITS) with the aim of promoting Bangalore and Karnataka as the ultimate start up destination in the world.
On a much broader note, the Government of India is also actively scheming to encourage and help entrepreneurs and startup founders in every way possible. Start Up India, an ambitious scheme and policy framework, has been set up to help startups begin and grow without facing any of the usual regulatory roadblocks and entry barriers that other businesses in India have to face.
Startups will be able to complete registration formalities within a day, with a one-page company registration form. A dedicated portal and mobile application for one-point registration was launched on April 1, 2016 to simplify the process.
Startups will be exempted from taxes on income for the first three years of operation if they do not distribute dividends for those years. In addition, taxes on capital gains—that have been invested in venture funds registered with the Securities and Exchange Board of India (SEBI) — will not be levied.
Startups will be able to exert their intellectual property rights with ease and speed. The union government will simplify the Intellectual Property Regime and will also bear the cost of registering trademarks, designs, and patents. In addition, it will fast-track patent applications for faster approvals.
Startups will be able to raise funds from a dedicated startup-funding body, which will be set up with an initial corpus of INR 2,500 crore and gradually move up to INR 10,000 crore by the end of four years. The funding body will be managed by a team of leading professionals from successful startups and academia, instead of public servants.
Startups can raise debt funding directly through recognized banking institutions via the National Credit Guarantee Trust Company (NCGTC). A credit guarantee scheme will be set in place to allow access to the NCGTC and the Small Industries Development Bank of India, for the same. Funds of about INR 500 crores will be available for startups each year.
Startups will be able to self-certify their compliance on key labor and environment laws with the help of a new startup mobile application. In addition, they will be exempted from inspections for a period of three years.
Startups that have their own manufacturing units in India will enjoy lenient procurement policies. They will be exempted from the strict “prior experience and/or turnover” criteria by central and state governments as well as PSUs.
Startups will be able to avail 31 new state-of-the-art innovation centers, seven new research parks, and five bio-clusters, which will be set up under the Atal Innovation mission of Startup India. In addition, a host of new sector-specific incubators will be set up, along with 500 ‘Tinkering Labs’, and a total of seven entrepreneurship awards.
Startups will be able to make an exit within three months (90 days), using provisions from Government of India’s new bankruptcy bill.
Startup India Eligibility – https://startupindia.gov.in/uploads/pdf/Startup_India_FAQs.pdf
Startup India Registration Form – http://startupindia.gov.in/registration.php
Startup Cell Karnataka Registration – http://www.startup.karnataka.gov.in/
Startup Cell Karnataka Funding – http://www.startup.karnataka.gov.in/funding
Startup at Evoma – https://www.evoma.com/contact-us/