Benefits to startup by the Government
India has the third-largest entrepreneurial ecosystem in the world. The year-on-year growth is expected to be stable at 12-15%. Indian start-ups have raised large amounts of capital from various domestic and international investors. Compared to the previous year, the number of transactions worth more than $ 50 million has increased.
Apart from getting financial support for your start-up from the government, there are various other benefits once you enroll with government schemes.
Existing entities can register as “Start-up”
According to the law, an existing entity can register as a start-up company, as long as it meets the standards required for the start-up company. They will also be able to take advantage of the various intellectual property and tax benefits available to start-ups.
Reduction in Cost
The government also presents lists of facilitators of patents and trademarks. They will offer incredible Intellectual Property Right Services along with rapid exam of patents at decrease charges. The government will endure all facilitator charges and the startup will bear the statutory charges only. They will revel in 80% discount in the fee of submitting patents.
Easy get entry to Funds
A 10,000 crore rupees fund is set up with the aid of using authorities to offer a price range to the start-ups as project capital. The government is likewise giving assurance to the creditors to inspire banks and different monetary establishments for imparting project capital.
Tax relaxation for 3 years
Start-ups don’t have to pay income tax for 3 years if they get a certificate from Inter-Ministerial Board (IMB). Start-ups established between April 1, 2016, and March 31, 2021, are eligible to participate in the program. The 2021 budget has extended eligibility to March 31, 2022. Such start-up companies will be eligible for a 100% tax rebate on their income for 3 years within 7 years, provided that the annual turnover of any company does not exceed 25 million rupees per year. This will help start-up companies meet their working capital needs in the first few years of operation.
Eligibility to apply for Government Tenders
The start-ups are exempted from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders. The start-ups hence get the opportunity to apply for the government tenders.
Shake hand with other like-minded Entrepreneurs
The government proposes to hold two entrepreneurship events nationally and internationally each year to allow various stakeholders from start-ups to come together. This will provide tremendous networking opportunities. The government strongly encourages business creation. The benefits they enjoy are enormous, which is why more and more people are starting their businesses.