Startup India: PM Narendra Modi unveiled the 'Start-up India Action Plan' and announced a slew of incentives to boost start-up businesses in the country including a whopping Rs 10,000 crore fund corpus. Addressing the first conference of start-up entrepreneurs, Modi announced the 19-point start-up 'Action Plan' to boost such ventures which are seen as key to employment generation and wealth creation. PM asked youths of the country to be 'job creators' and not 'job seekers'. (Express photo): -
1. Modi said a start-up does not mean a billion dollar company where thousands of people work; it is about employing even 5 people and developing India. Success of start-ups is not only about enterprise, it is about risk taking and adventure also…. There is an energy from within and there are dreams that you have dedicated yourself to.
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2. Start-up India: PM Narendra Modi announced a self-certification scheme in respect of 9 labour and environment laws and said there will be no inspection during the first three years of launch of the startup. (Reuters photo)
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3. Start-up India: PM Narendra Modi said a liberalised patent regime is being brought to help start-up businesses register patents, for which the fee will be slashed by 80 per cent. The government is also working on a legal support for fast-tracking patent examination at lower costs. It will promote awareness and adoption of Intellectual Property Rights (IPRs) by start-ups and help them protect and commercialise IPRs.
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4. Start-up India: PM Narendra Modi said, India, which has the third-largest number of start-ups globally, will also support the ventures by removing the criteria of experience and turnover for bagging government procurement contracts.
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5. Start-up India: PM Narendra Modi said profits earned by start-ups will be exempt from payment of income tax during the first three years of business. To boost financing, a 20 per cent tax on capital gains made on investments by entrepreneurs after selling own assets as well as government-recognised venture capitalists will also be exempt. (PTI [hoto)
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6. Start-up India: PM Narendra Modi said an unencumbered easy exit option will be provided under the bankruptcy Act so that start-ups can exit within 90 days. The action plan provides for faster exit of start-ups in the case of winding up of business. An insolvency and bankruptcy Bill has been pending approval of Parliament and 'you know why it is stuck there' (in an apparent reference to the Opposition stalling its passage). (PTI photo)
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7. Start-up India: PM Narendra Modi said the action plan includes capital gains tax exemption that will put start-ups at par with MSMEs. (Reuters photo)
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8. Start-up India: PM Narendra Modi said tax exemption will be given on investments above the fair market value. Under the Income Tax Act, if a start-up receives equity funding which exceeds the firm's fair market value, then such excess consideration is taxable in the hands of recipients. (PTI photo)
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9. Start-up India: PM Narendra Modi said the objective of compliance regime based on self certification is to reduce the regulatory burden on start-ups. This self-certification will apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.
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10. Start-up India: PM Narendra Modi said a start-up India 'hub' will be created as a single point of contact for the entire start-up ecosystem to enable knowledge exchange and access to funding
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Prime Minister Narendra Modi’s 19-point action plan on start-ups has failed to meet the expectation of some venture capitalists and new start-ups. (Express photo)
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12. Start-up India: PM Narendra Modi said the relaxed norms for public procurement will give start-ups an equal platform vis-a-vis experienced entrepreneurs or companies. (Reuters photo)
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13. Start-up India: PM Narendra Modi said to provide funding support to start-ups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund. (PTI photo)
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14. Start-up India: PM Narendra Modi said the credit guarantee fund for start-ups would help flow of venture debt from the banking system to start-ups by standing guarantee against risks. (Reuters photo)
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15. Start-up India: PM Narendra Modi said a National Credit Guarantee Trust Company is also being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.
