What is Start up?
During recent years, India has witnessed a surge in corporate world for start-ups. India is full of young people who possess such talent that can build a new India through their innovations and ideas. These energetic people who got new ideas work on their potential and bring unique product and service into the economy.
Start- ups brings the entrepreneurial abilities of Individual that makes India and world a better place of living ,innovation can in any felid it could be in form of reducing garbage by introducing zero waste personal products, develop any cloud base appusing real device/tester, cleansing water from small portable device and many more.
These bright minds not only need support of society they also require financial and technological assistance to bring their idea into reality. To cater such needs, Government of India has taken initiative and launched a flagship action plan to support such start ups through “Start-up India.”
What is Startup India?
In 2016 Government of India has launched the campaign “Startup India” under Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade). The aim of Startup India is to build a strong ecosystem where entrepreneurs can nurture their ideas and convert it into innovation.
As per the action plan rolled, three focusing area were:
- Simplification and Handholding
- Funding Support and Incentives
- Industry-Academia Partnership and Incubation
Besides nurturing new talent, startup India aims to:
- Create large scale employment
- Support entrepreneurs financially
- Promote investments in startups
- Build institutes / research center
- Accelerate Indian economy
- Promote sustainable development etc
- Showcase India’s talent on international platform
Key Highlights under Startup India
The flagship initiative of Government of India has briefed in its action plan, manner in which “Startup India ” can startup ecosystem. Below given are few action points:
- Compliance regime bases self certification: Startups must concentrate on their work instead of indulging into regulatory pressure.
- Startup India hub:To create a single window platform where investors, entrepreneurs, mentors can exchange their knowledge and access funding
- Online portal and mobile apps: To support startups through user friendly apps and websites.
- Provide legal support and Fast tracking patent examination at lower cost
- Relaxed norms in public procurement: To provide relaxation for participation of startups in government procurements.
- Faster exit for startups: To simplify the exit process for startups.
- Tax exemptions on capital gains,Income, investments etc
- To organise fest and arrange platforms to showcase innovation
- o build innovation centers, research parks etc.
Who are eligible for registration as Startup?
Entities must fulfil certain criteria to be considered eligible for startup recognition.
|Company existence should not be more than 10 years from date of incorporation|
|Start up should work for: Development and improvement of product, process or service Have scalable business model with high potential for creation of wealth and employment|
|Entity should not be formed by splitting up or reconstructing an already existing business|
|Since incorporation, turnover of the entity should not exceed Rs. 100 crore|
|It must be incorporated as “Private Limited Company” “Registered Partnership Firm” and “LLP”|
Start up hub is an online platform where investors and startup can interact with each other. Investors /venture capitalist plays vital role in supporting startup as their investment help startup to fulfil their objectives. Investors add value to startup through:
- Management:Investor share their expertise through their management skills which help startups in smooth operations.
- Fund Arrangement:After initial investment, further rounds of funding are required , investors possess knowledge of raising funds which help entrepreneurs to raise timely and adequate funds.
- Marketing:Having strong networking and experience in various fields , investors helps startup to do better marketing
- Fill talent gap: Some times startup requires specialised and highly qualified personnel , in such scenario investors help to bridge this gap by recruiting personnel/executive.
- Restructuring: Investor not only provide fund to entities but also assist them in their organisational structure.