India is a nation where startups can emerge and reach every corner across the globe. Many prominent names like Tata, Reliance, and others started their journey from here and managed to spread their business everywhere. In India, the government has helped millions of startups to serve people and become part of the economy. Although crowdfunding for startups in India is easily accessible which prepares a suitable environment for these businesses, still, the benefits the government offers to startups here cannot be ignored. In this article, we will learn how startups in India get benefits from the government.
Benefits Government Offers To Startups In India
1. Simple Online Registration
Earlier, it was not easy for startups to go through the entire registration process. Entrepreneurs faced a series of difficulties at that time. Now, the government has introduced an app for registration, hence making the whole process online. Anyone looking to start a business should fill a simple form and provide necessary documents.
2. Lower Fees
For startups, trademarks and patents are readily accessible by the government. Now, the patents are examined at low fees. Besides this, all the facilitator fees are paid by the government, while the startups bear only statutory fees. As a result, over 70 percent of the fee burden is reduced for the startups.
3. Funds Are Easily Accessible
The Indian government has an enormous capital, about ten thousand crore rupees for startups in the form of seed capital. In addition, financial institutions other than banks are encouraged to help startups with necessary funds and other resources.
4. Temporary Exemption From Tax
Startups in India are exempted from taxes for three years while getting ready for the market. The three-year exemption period is termed as a tax holiday. However, they are required to receive an IMB certificate to take advantage of the tax holiday.
5. Tenders Are Accessible
Government tenders are readily accessible to startups. Now, new companies can apply for them without showing any current turnover and prior experience in the relevant industry. This is a great advantage of starting a business in India.
6. Research and Development
Research and development are crucial for any startup to expand its business. Therefore, the government is working on several research parks that will offer all the necessary R&D facilities for all the industries.
7. Compliances Are Simplified
Compliances were time-consuming for startups a few years ago. However, the government has simplified them at present. Startups can now save money and time. According to the government, startups need to comply themselves by certifying through the mobile app.
8. Benefits For Investors
Investors get tax benefits from the government while investing their money on startups. They are free from any form of tax while gaining capital. Such a facility allows startups to attract investors every time they will need money.
9. Choose Investors
Startups are now free to choose any type of investor. Depending on the financial situation, entrepreneurs can go for angel investors, startup incubation support, accelerators, banks, VC firms, and other organizations.
10. Easy Exit
If a startup wants to close its operation, it can apply for its closure within a period of 3 months. This makes it easy for a new business to make an exit in case it faces any loss or due to other reasons.
Success Of Startup India Scheme So Far
Startup India has played a crucial role in driving the enormous economy of the country. It has given a significant push to the innovative spirit in the market and industries. Many tech startups emerged which offered jobs to millions of people. Today, more than 50 percent of young professionals are from the IT sector, directly or indirectly. Bangalore is a city where every 3 out of 5 company is working on web development or any other new technology. Almost, all startups prospered there when the government supported them with the necessary funds and resources. In addition, the government worked on development schemes where nations like Japan, Germany, France, and all SAARC countries could invest their money in startups in India. Although countries are ready to put their resources, a significant issue exists from the part of the bureaucracy and politicians. Due to their pressure, some startups fail to get along into the market. Still, despite such obstacles, India can be a great startup platform for most of the entrepreneurs.
Entrepreneurs can reap several benefits while starting their business in India. In this article, we have seen how the government is backing all startups in India with various programs, particularly Startup India. Besides this, owners can go for any other startup investment platform. We also observed the IT industry has grown massively, creating millions of jobs. However, India is not only for all about the IT field. Other industries such as banking, finance, food processing, ecommerce, healthcare, marketing, etc. are getting traction on a large scale. So if you are looking to start a business, then the government is always there to support you in India.