Startup India Initiative
Everything you need to know about the Indian Government’s Startup India Program
What is Startup India?
Startup India is a flagship initiative launched by the Government of India in 2016 to promote entrepreneurship, innovation, and economic growth. The program aims to support startups by providing financial assistance, regulatory benefits, and ease of doing business.
- Encourage Innovation – Promote new business ideas and technological advancements.
- Simplify Business Setup – Reduce legal and regulatory barriers for startups.
- Provide Financial Support – Offer tax exemptions, government funding, and easier loan access.
- Boost Job Creation – Generate employment opportunities by supporting new businesses.
- Promote Ease of Doing Business – Offer a single-window platform for startup registrations and approvals.
Benefits of Startup India
- Tax Exemptions – Startups get a 3-year tax holiday and exemptions under Section 80-IAC, along with capital gains tax benefits.
- Easier Compliance – Simplified procedures for company registration, labor laws, and business filings, reducing regulatory burden.
- Funding Support – Access to Startup India Seed Fund Scheme, Fund of Funds, and government-backed loans to boost early-stage growth.
- Self-Certification & Fast-Track Patents – 50% rebate on patent filing fees and 80% reduction in trademark registration costs.
- Networking & Mentorship – Connects startups with investors, incubators, mentors, and industry experts through Startup India hubs and events.
- Government Tenders & Procurement Benefits – No prior experience requirement for startups to apply for government contracts.
- Easier Winding Up – Startups can shut down operations within 90 days under the Insolvency and Bankruptcy Code (IBC), 2016.
- Foreign Investment Support – Startups can receive 100% FDI (Foreign Direct Investment) under automatic route, making it easier to attract global investors.
- Access to Research & Development Facilities – Startups can use government-supported labs and innovation hubs for research and development.
- Corporate Partnerships & CSR Funding – Large corporations invest in startups as part of their Corporate Social Responsibility (CSR) initiatives.
Mandatory Criteria for Startup India Registration
To register under the Startup India program, the following criteria need to be met:
- Startup must be incorporated as a private limited company, limited liability partnership, or a partnership firm.
- The company must be working towards innovation, development, or improvement of products or processes.
- The startup must not be older than 10 years from the date of incorporation.
- The turnover of the startup must not exceed ₹100 Crore in any of the previous financial years.
How to Register for Startup India?
Follow these steps to register your startup with the Startup India portal:
- Visit the official Startup India website: startupindia.gov.in
- Click on the ‘Register’ button and create a login account.
- Complete the application form with details about your business and your startup.
- Submit your application and wait for verification.
Resources for Startups
The Startup India initiative offers various resources to support startups, including:
- Startup India Initiative – Offers tax benefits, funding support, and regulatory ease.
- Startup India Seed Fund Scheme (SISFS) – Provides up to ₹50 lakh for early-stage startups.
- Fund of Funds for Startups (FFS) – ₹10,000 crore government-backed fund managed by SIDBI.
- MUDRA Loan Scheme – Offers loans up to ₹10 lakh for small businesses.
- Stand-Up India – Provides funding for SC/ST and women entrepreneurs.