Make in India is an initiative launched by the Government of India to encourage multi-national as well as national companies to manufacture their products in India. It was launched by Prime Minister on 25 September 2014. The ‘Make in India’ programme has been launched globally with 25 thrust sectors and a dedicated portal with back end support up to Sectoral and State levels for facilitation.
Start-Up India: Launching the Start-up India action plan, the Prime Minister mentioned that the Government wants to play the supporting role, that of an enabler. The intention is laudable and the budget looks to provide some very important steps around the ease of doing business, taxation, access to capital for MSMEs and skill development.
The various ministries of the Government of India have initiated a number of activities for the purpose. To bring uniformity in the identified enterprises, an entity shall be considered as a Start-Up
- Upto five years from the date of Incorporation.
- If its turnover for any other financial years has not exceeded Rupees 25 Crores,
- And it is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
An entity formed by splitting up or re-construction of a business already in existence shall not be considered as Start-up. Further in order to obtain tax benefits under Start-up definition, the entity shall required to obtain a certificate of an eligible business from the inter-ministerial Board of Certification.
An entity shall cease3 to be a start-up on completion of 5 years from the date of its incorporation or its turnover for any previous year exceeds 25 Crore.
The process of recognition as a Start-Up will be though mobile app/portal of Industrial Policy and promotion. Start-ups will be required to submit an application with any of the following documents.
- A recommendation with regard to innovative nature of business in a format specified by DIPP from any incubator established in a postgraduate college in India. or
- A letter of support by any incubator which is found in relation to the project from government of India or any State Government as part of any specified scheme to promote innovation. or
- A recommendation with regard to innovative nature of business in a format specified by DIPP from any incubator recognized by Government of India. or
- A letter of funding of not less than 20% in equity by any incubation fund/angel fund/ private equity fund/ accelerator/ angel Network duly registered with SEBI that endorses innovative nature of business. Or
- A letter of funding by Government of India or any other State Government as part of any specified Scheme to promote innovation. Or
- A patent filed and published in the journal by the Indian Patent office affiliated with the nature of business being promoted.
DIPP may, until such mobile app/portal is launched make alternative arrangement of recognizing a ‘startup’. Once such application with relevant document is uploaded a real-time recognition number will be issued to the startup. If on subsequent verification, such recognition is found to be obtained without uploading the document or uploading any other document or a forged document, the concerned applicant shall be liable to a fine which shall be fifty per cent of paid up capital of the startup but shall not be less than Rupees 25,000.
The Union budget 2016 has been looked up by the entire start-up community as the most interesting one, which for the first time has been prepared with vision of self-propelling the entrepreneurial population. The following Key announcement has been done in union budget.
- Start-ups which will be set-up during April 2016 to March 2019, will receive 100% deduction of profits for 3 out of 5 years.
- The Government will set up funds with a corpus of INR 10,000 Crores to provide support to start-up.
- Women entrepreneurs would be entitled to a loan of INR 10 Lacks to INR 1 Crore to start a business.
The Union Budget 2016 aims to accelerate the investor’s interest and to make start-up more competitive, by inducing initiatives like creating online portal for easy registration so as to do away with regulatory processes, amendment in companies Act, 2013 to create conducive business environment, and for creating fast track systems for examining of patents in cost effective manner.