Followings are some of the benefits/incentives associates with having a Start-up:
- Reduction in cost
In order to encourage Start-ups, the government provides various lists of facilitators of patents and trademark, wherein the government will bear all facilitator fees and the start-up will bear only the statutory fees. The Government also provides high quality Intellectual Property Rights Services that includes fast examination of patents at lower fees. In addition to this there is 80% reduction in cost of filing patents.
- Easy access to Funds
To make the process of securing funds easier, a 10,000 crore rupees fund is set-up by government to provide funds to the start-ups as venture capital, known as ‘Fund of Funds for Start-ups’. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
- Tax holiday for 3 Years
After receiving a certification from Inter-Ministerial Board (IMB) a Start-up will be eligible to be exempted from income tax for 3 years.
- Apply for tenders
A start-up qualifies to apply for government tenders and gets the additional bonus of getting an exemption from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.
- No time-consuming compliances
To simplify the process of starting a Start-up, various compliances have simplified which aim to save time and money. For instance, a Start-up can now self-certify compliance through the Start-up mobile app.
- Tax saving for investors
Intended towards helping Start-ups attract more investors, exemption from capital gains is set out for people investing their capital gains in the venture funds setup by government.
- In case of exit
To promote entrepreneurs to experiment with new and innovative ideas, without having the fear of facing a complex and long-drawn exit process where their capital remains interminably stuck a start-up can close its business within 90 days from the date of application of winding up on a fast-track basis.