Startup India: Objectives and Benefits of the Scheme
By Flywork.io Team July 12, 2021
Priyasha Sen Gupta, Flywork.io Team, Flywork.io.
Startup India is a much-needed initiative launched by Prime Minister Narendra Modi in 2015. It’s a well known fact that India is a country full of talented people, but young people don't have many opportunities to achieve their dreams and ambitions. Thus, this campaign could be a great kick-start for the youth to accomplish their goals. Prime Minister Modi declared it on Independence Day and it was launched on 16th January.
It is noteworthy here that there are eligibility criteria for a company to come under this scheme such as those concerning establishment and turnover. If the criteria are satisfied and once registration is done, a startup will be able to reap the benefits of the scheme. The aforesaid registration process is simple and can be done online by submitting the required documents.
Objectives of Startup India
It is a famed fact that youth is a very energetic and capable lot. However, this energy and enthusiasm of theirs do not usually get channelised in the proper direction. This campaign will aim to try and do precisely that. This will make sure that the youth get the required facilities from the government.
Furthermore, it is a commendable initiative that enables the youth to touch newer heights. This will provide them with the resources which will allow them to fulfill their dreams of turning into a businessman or entrepreneur. These need a start-up network that this campaign will provide. Basically, it implies that banks will provide finances to those youth for making higher employment opportunities within the country.
In other words, young people should be made to work so that the problem of unemployment can be eliminated in India. This initiative will help many startups succeed and they will finally be able to properly align their innovation and creativity making this a sign of great relief for the youth.
The banks have been urged to support at least one Dalit and one entrepreneur, in order to maintain inclusivity as well. This is a huge improvement and will provide a career advantage for newcomers in the industry. In addition, it will also boost the national economy.
Benefits of Startup India Scheme
Ease of Work
The government has started the Startup India hubs wherever the incorporation, registration, grievance, handling etc., are simply handled. On the web portal, the government has set up a hassle-free registration system, so one will be able to register from any place and at any time. As per the financial condition and Bankruptcy Bill of 2015, it facilitates the quick winding-up method for startups and a new startup can take place within ninety days of the corporation.
To motivate startups, the government provides financial support that includes a collection of Rs. 10,000 crores for 4 years (Rs. 2,500 per year). The state uses these funds to invest in new startups. The income tax exemption applies for the first 3 years after founding a startup. If a start-up company receives units that exceed the market value of the units, this excess is taxable for the recipient as income from other sources, under the Income Tax Act.
Everyone wants a government tender when it comes to high payouts and large projects. Getting government support is not easy, but under the Startup India Scheme, startups are a priority to get government support easily. The good news is that it does not require any prior knowledge.
Networking opportunities allow people to meet the various startup stakeholders in a specific place and at a specific time. The government does this by running two start-up tests annually, both nationally and internationally. In addition, the Startup India program also offers intellectual property awareness and awareness workshops.
Startup India is a great opportunity for companies that want to be successful in the market. This arrangement brings them many advantages and also saves their taxes. It is a well-known fact that startups play a crucial role in the economic prosperity of a country. Therefore, by encouraging such companies, the government has undoubtedly taken a positive step towards India's economic development.
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