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.
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 r e duced 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.
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