Sunday, July 26, 2020

~STARTUP INDIA POLICY~💛

         HELLO EVERYONE! IAM HERE TODAY TO             ERADICATE ALL YOUR WORRIES FOR                     YOUR BUSINESS FUNDS💛

HAVE YOUR HEARD ABOUT STARTUP INDIA POLICY .TODAY WE ARE GOING TO GET TO KNOW ALL ABOUT IT 👍

STARTUP INDIA POLICY IS AN INITIATIVE OF THE GOVERNMENT OF INDIA.THE CAMPAIGN WAS FIRST ANNOUNCED BY INDIA'S PRIME MINISTER NARENDRA MODI DURING HIS RED FORT ADDRESS IN NEW DELHI ON 15th AUGUST 2015 .OUR PRIME MINISTER NARENDRA MODI HAS STARTED AND PROMOTE STARTUPS INDIA INITIATIVE TO RECOGNISE AND PROMOTE STARTUPS .


WHAT IS STARTUP INDIA POLICY :- Startup offers new product & services that is not being given elsewhere in the same way or redevelops the current products and services into something better & innovative.it help in developing indian economic & attract talented ENTREPRENEURS.


LEGAL REQUIREMENTS:-  IT MUST BE REGISTERED UNDER THE FOLLOWING LEGAL FRAMEWORK

* COMPANIES ACT 2013.
* LIMITED LIABILITY PARTNERSHIP ACT 2002.
* UNDER SECTION 59 OF PARTNERSHIP ACT 1932 ,AS PARTNERSHIP FIRM.

INDIAN STATES WITH STARTUP POLICY.
GOVERNMENT HAS TAKEN INITIATIVE & LAUNCHED STARTUP POLICIES FOR THEIR STATE'S 
                      Few Of Them Are:-
WEST BENGAL 
UTTAR PRADESH
ODISHA
RAJASTHAN
KARNATAKA
GUJRAT
JHARKHAND
ETC.

FOLLOWING ARE THE IMPORTANT POINTS FOR STARTUPS :-
1)Choose the right legal structure
2) Registration & business license
3) Intellectual property protection
4)Founder equity split & vesting
5)Founder agreement
6) Employment contracts
7)Employee stock option pool (ESOP)
8)Third party agreement
9) Investment structure
10) Compliance management

PROCESS OF RECOGNITION OF STARTUPS:-
As startup shall be through mobile app/portal of department of industrial policy & promotion.
Startup will be required to submit a simple application with any of the following documents:-

1)You have to follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances. 

 2)Register with Startup India
Then the business must be registered as a startup. The entire process is simple and online. All you need to do is log on to the Startup India website and fill up the form with details of your business and upload certain documents.

3)Documents to be uploaded (in PDF format only)

a) A letter of recommendation/support A letter of recommendation must be submitted along with the registration form. Any of the following will be valid.

i) recommendation (regarding innovative nature of business) from an Incubator established in a post-graduate college in India , in a format specified by the Department of Industrial Policy and Promotion (DIPP).

ii) A letter of support by an incubator, which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation.

iii) A letter of  recommendation (regarding innovative nature of business), from an Incubator, recognized by the Government of India in DIPP specified format.

iv) A letter of funding of not less than 20% in equity, by any Private Equity,Incubation Fund,Angel Fund,Fund,Accelerator,Angel Network, duly registered with SEBI that endorses innovative nature of the business

v) A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation.

vi) A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.

b) Incorporation/Registration Certificate
You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)

c) Description of your business in brief
A brief description of the innovative nature of your products/services.

 4)Answer whether you would like to avail tax benefits
Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.

 5) You must self-certify that you satisfy the following conditions
a) You must register your new company as a Private Limited Company, Partnership firm or a Limited Liability Partnership

b) Your business must be incorporated/registered in India, not before 5 years.

c) Turnover must be less than 25 crores per year.

d) Innovation is a must ,the business must be working towards innovating something new or significantly improving the existing used technology.

 6)Immediately get recognition number.
 On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents.

However, be careful while uploading the documents. If on subsequent verification, it is found to be obtained that the required document is not uploaded/wrong document uploaded or a forged document has been uploaded then you will be liable with fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.

EXEMPTION FOR STARTUPS
Reduction In Cost
Easy Access Fund 
Tax Holiday For 3 Years
Apply For Tender 
Research & Development Facilities
No Time Consuming Compliance
Tax Saving For Investors
Choose Your Investor
Easy Exit
Meet Other Entrepreneurs

FINANCING OPTION AVAILABLE FOR STARTUP COMPANIES

1) GOVERNMENT PROGRAMS (MUDRA):-
(PRADHAN MANTRI MICRO UNITS DEVELOPMENT & REFINANCE AGENCY LIMITED )Providing loan up to ₹10 LAKH to the non-corporative ,non-firm small/micro enterprise.These loans are given by the COMMERCIAL BANK ,SMALL FINANCE BANKS ,MFIs & NBFC.You can visit the website WWW.MUDRA.ORG.IN under this mudra has created three types of loan name 
SHISHU which provides the loan up to ₹50,000.
KISHORE which provides loan from ₹50,000 to ₹5 lakh.
TARUN which provides loan of ₹5 lakh to ₹10 lakh.
THE KEY BENEFITS OF MUDRA LOAN IS THE BORROWER DOES NOT REQUIRE TO PROVIDE ANY SECURITY OR COLLATERAL .THERE ARE NO PROCESSING CHARGES ON MUDRA LOAN..

2) BOOTSTRAPPING YOUR BUSINESS:-
It means SELF FUNDING specially when you are just going to start your business some business requires instant funding after starting .As it has less formalities/compliance.it is suitable for only small business.Some business needs money right from the beginning and for such business BOOTSTRAPING may not be a good option.

3) CROWDFUNDING :- An entrepreneur will put up a description of his business in detail on crowdfunding website .he/she will mention how much funds he /she requires and what is his/her goals.whoever will like or believe in his/her plans will invest in their business .

4)ANGEL INVESTMENT:-There are individual with surplus cash & keen interest to invest in upcoming startups.

5)VENTURE CAPITAL:-They are professionally managed funds who invest in companies that have huge potential.they usually invest in business against equity and exits when there is an IPO or an ACQUISITION .It may be appropriate for small business.

6)RAISE MONEY THROUGH BANK LOANS :-Bank provides two kinds of financing 
I)working capital loan - Require to run one complete cycle of revenue generating operation & the limit is usually decided by stock holder & debtors.

II) funding from bank -  it involves usuall process of sharing the business plan &the valuation detail along with the project report based on loan sanctioned.the banks you can choose are :- Axis bank ,Bank of baroda,Hdfc,ICICI.

7)GET BUSINESS LOAN FROM MICRO FINANCE PROVIDER (NBFC).
When you can't qualify bank loan , there is still an option which is (NON BANKING FINANCIAL CORPORATION)that provides banking service without meeting legal requirement/defination of a bank.


THANK YOU FOR READING IT ❤️😇👍I HOPE IT WAS HELPFUL TO YOU .





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