With an objective to reduce the fiscal burden on start-up companies and enable them to maximise profits while keeping compliance expenses down, the Government of India has launched an initiative called Startup India.
This plan helped entrepreneurs expand their existing line of business. Continue reading to learn about Startup India’s benefits, along with its eligibility parameters and tax exemptions.
The Startup India scheme was launched by the Indian Government in 2016. The scheme’s primary objective was to create an independent pool of job creators building a robust start-up ecosystem.
With the main goal of wealth generation and increasing employment opportunities across the country, Startup India benefits millions of aspiring entrepreneurs. All programs initiated within the Startup India scheme are managed by an exclusive team which reports to DPIIT (Department for Industrial Policy and Promotion).
Submit the following documents to register start-ups under the Startup India scheme:
Certificate of incorporation
PAN card of the company
MSME registration, GST registration, Trademark registration certificates (if available)
Company’s website or profile
Details of company directors
Revenue details
Like Startup India, Stand-Up India is also an initiative established by the Indian government to help entrepreneurs. While they are fundamentally similar, they have very different objectives and focus on very different individuals.
People usually get confused between these two schemes and end up assuming both are the same. To eliminate the confusion, here is a table outlining the differences between them.
Startup India |
Stand-Up India |
It tends to focus on businesses that meet the definition of a start-up and do not have a high turnover. |
It focuses on assisting SC, ST, and women entrepreneurs. |
It enables start-ups to obtain more funding sources for their company, permitting them to finance their project while also allowing them to benefit from several tax deductions. |
It allows individuals to apply for large loans ranging from ₹10 Lakhs to ₹1 Crore. |
Firms less than five years old can apply for this scheme. |
This scheme allows individuals from the SC, ST castes and women. |
It covers a maximum of 80% of the total patent cost. |
It covers around 75% of the total project cost. |
Loan for Startup India is available for Partnership Organisations, Limited Liability Partnership Enterprises, and Private Limited Companies. |
This scheme only provides loans for greenfield projects (i.e., the beneficiary's first foray into the trading/manufacturing services segment). |
To acquire Startup India financing, your firm must be registered under DPIIT.
Here are a few eligibility criteria to register at Startup India. Your firm must have received approval from DPIIT and must have an annual turnover of ₹25 Crores. The entity should not be older than 5 years and must be delivering unique services and products.
Private Limited Companies and Limited Liability Partnerships are eligible for tax exemption under Section 80IAC. However, it is mandatory for start-ups to register for GST.
Partnership Organisations, Limited Liability Partnership Enterprises, and Private Limited Companies are eligible for the Startup India scheme.
In India, seed funding for start-ups is channelled through state/centre-recognised incubators.
You will be granted your Startup India certificate after DPIIT verifies the details provided along with the application form.
The three pillars include simplification and handholding, funding & incentives and incubation & industry-academia partnerships.
The scheme has gotten approval for 4 years from 2021-22 with a corpus of ₹945 Crores. The number of start-ups increased from 452 to 84,012 by November 2022.
Any entity meeting the required eligibility parameters can invest in this scheme.
The maximum amount applicable under the scheme is ₹1 Crore.