Prime Minister Narendra Modi on Saturday launched the Action Plan to facilitate startups in India, announcing a string of concessions and programs to encourage fledgling enterprises.
1. Tax exemptions for three years and concessions on capital gains tax.
2. Compliance regime based on self-certification and no regulatory inspection for three years.
3. A fund of Rs. 10,000 crore to back startups. Initially the corpus will be Rs. 2,500 crore. Also, a credit guarantee fund for startups.
4. A Startup India hub – a single point of contact for interactions with the government.
5. Atal Innovation Mission (AIM) for promotion of research and development including 500 tinkering labs, 35 public-private sector incubators, 31 innovation centres at national institutes, 7 new research parks, 5 new bio-clusters.
6. 90 days for a startup to close down its business.
7. 80 per cent reduction in patent filing fee and fast-track mechanism for startup patent applications. Also, a panel of legal facilitators for startups to file IP (patents, designs, trademarks) with costs borne by government.
8. Relaxed norms of public-procurement for startups. No requirement of turnover or experience, but no relaxation of quality.
9. 5 lakh schools and 10 lakh students to be involved in core innovation programs. National and international Startup Festivals to provide visibility.
10. A mobile app to be launched on April making it possible to register startups in one day.