BANK PROMOTION FREE NOTES 2022 | START-UP INDIA
In this article, we will read about a few things about the startup India scheme which falls under the syllabus of bank promotion applicable for 2022.
The first thing we need to understand is the meaning of the Startup India Scheme. The startup is one that fulfills the below criteria:
- An entity that has been registered or incorporated in India and has headquarters inside India for not more than 7 years.
- In the case of biotechnology startups, 10 years have been prescribed.
- Its annual turnover in any fiscal year < Rs. 25 Crores
- Its main purpose should be innovation, development, or improvement of products, services, or processes.
- The business model should be scalable having the potential to generate employment and create wealth.
- It should not be a resulting entity of reconstruction of a business are splitting up of a business that was already in existence.
SALIENT FEATURES OF THE STARTUP INDIA SCHEME
Following are some of the features of benefits that a startup avails:
- They are not required to comply with the labor laws for the first three years of their Incorporation.
- The startup which comes under the ‘white category’ can self-certify the compliances related to environmental laws and they are only required to undergo random checks in some of the cases.
- A hub with the name ‘Startup India Hub’ (single platform) has been created to help in the dissemination of information related to finance, technology and Management.
- The special mobile application has been developed to provide instant status of the registration, compliances, and status in relation to clearances and other approvals.
- Startups can claim an 80% of rebate in the payment of fees while registering for their patents. The filing procedure to register a payment has also been simplified and there has been a reduction in the fees.
- In the manufacturing sector, startups are exempted to fulfill the criteria of prior experience and turnover.
- The startup India scheme also assists them with financial help. A fund of Rs. 10,000 Crore and Rs. 2000 crore (credit guarantee) has been set up by the government for this purpose.
- If these startups obtain a certificate from the inter-ministerial board, they can also be exempted from income tax for the first three years.
- Insolvency and bankruptcy code also provides them an easy exit if a Startup fails to succeed bye by giving them an exit within 90 days.
- The existing capital gain tax exemption in which investment in newly formed MSMEs by individuals has also been extended to all startups.
- They are also provided with logistic needs and other requirements that can help them to function smoothly.
MAKE IN INDIA
To encourage multinationals as well as domestic companies to manufacture products in India, an initiative by the government of India has been put forward with the name of ‘Make in India’.
It has been expected that this scheme will increase the scope for jobs in the coming time by boosting various job sectors.
It aims to fulfill the following objectives:
- Facility investment
- Encourage innovation
- Enhance the skills
- Protect intellectual property rights
- Create employment
- Digitalize India
- Make healthy relationships worldwide
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Advantages of Make in India
- Increase in the job opportunities
- Expand gross Domestic Product
- Make the rupee strong
- Upgrade the technology
- Increase brand value of India
- Ease business
- Developed rural areas
- Flow of Capital