Startup India: A Boon For Entrepreneurs

Published on 05 Jul 2017 by Team

Giving impetus to new ventures, the start-up India campaign generates momentum for entrepreneurship among the budding youth of the young nation. This digitization age would be called the epoch of free enterprise in the history of India.

Propelling young India to take charge and create jobs

India has the world’s largest youth population, according to a 2014 UN report.

 “Never before have there been so many young people. Never again is there likely to be such potential for economic and social progress. How we meet the needs and aspirations of young people will define our common future,” the report said.

Mobilizing this power would act as a catalyst for the progression of our economy from a poor agricultural one to encouraging new businesses. It marshals the resources of capital and labour, stimulating growth. Rallying start-ups mean creating jobs, rather than taking up existing jobs, easing the job market conditions.

Objective of the Startup Scheme

Start-up India aims to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low. It covers various sectors including agriculture, manufacture, healthcare, etc. and is not limited only to the technology-driven industry. Tier-1,2, 3 cities along with the semi-urban and rural areas have been included in its umbrella.

Easing business

In this era of globalization, more and more governments are revisiting their policies pertaining to exemptions which are provided to business entities so as to boost their pace of development and encourage more people to venture into the business sector. The Indian government has also taken a leap forward in the same direction by revamping their taxation policies which are directly incidental upon the budding businesses. Focusing their attention on small business initiatives, the government has introduced the ‘Startup India’ initiative as a part of its ‘Make In India’ campaign.

In this era of globalization and start-ups, more and more governments are revisiting their policies pertaining to exemptions which are provided to business entities so as to boost their pace of development and encourage more people to venture into the business sector. The Indian government has also taken a leap forward in the same direction by revamping their taxation policies which are directly incidental upon the budding businesses. Focusing their attention on small business initiatives, the government has introduced the ‘StartUpIndia’ initiative as a part of ‘MakeInIndia’.

Under this initiative, the government has revised many of the earlier policies which were considered a roadblock for such initiatives, making the business environment more comfortable and lucrative for the ones running a business or wanting to set up a new business.

  • Regulatory compliances including labour and environmental clearances have been made less stringent, giving them time to adhere to the standards.
  • A ‘Start-up India Hub’ has been formed to enable knowledge exchange and make funding accessible to entrepreneurs. A mobile-app and the separate portal has also been launched to create awareness about the initiative.
  • A fund with a corpus of 10,000 Crores has been set up by the government to help these budding businesses kick start.
  • A 3-year tax exemption period over a span of 7 years from an earlier 5 year has been granted to the start-ups by the government. This allows more time is available to the start-ups to manage their finances in the initial phase without causing abrupt disturbances to the stability of their current as well as future plans. 
  • The Government has proposed to set up/ scale up 31 centres (to provide facilities for over 1,200 new Startups) of innovation and entrepreneurship at national institutes, along with 7 new Research Parks modelled on the Research Park at IIT Madras.
  • The 2017 budget, has reduced the income tax rate that the domestic companies had to pay earlier. The business whose turnover is not more than 50lacs is required to pay only 25% as opposed to the earlier rate of 30%.
  • Lastly, the presumptive tax for business with a turnover of fewer than 2crores has been reduced from 8% to 6%. What presumptive tax allows the business entities is that it gives it the luxury to not maintain profit books and just pay taxes on a legitimate assumptive basis. This allows small companies to even avoid the expenses that they shell out in order to maintain such profit books. 

Figures speak in support of start-ups

3,160 startups have been recognized and 67 funded since the launch of the initiative.

A good time to set up a new venture

To conclude, it can be said that it is a very good time to set up a new venture in the present business environment. The perks being offered in their initial years, reduce the chances of the business being shut down due to financial reasons, adding a foothold to stabilize the incipient ventures.

Legistify connects you with the best lawyers in India and top Chartered Accountants in India with simple telephonic conversation or email. Call us at 846-883-3013 or send us an email at [email protected] to get started.


Related Posts

Browse through other related Blogs posts here

Top Legal Queries

Get answers from the best experts within minutes!

Most Consulted Advocates

Choose from our most consulted lawyers across India and get instant legal advice.

Top Consulted Advocates

Choose from our most consulted lawyers across India and get instant legal advice.


© Legistify Services Pvt. Ltd.

Home|About|Contact

function gtag() {dataLayer.push(arguments)}