Everything you need to know about Startup India Plan:
|#WeUnobstacle #StartupIndia #PMO|
It was the Saturday morning and I had just returned from an interview. My brother was glued to the TV and side by side was shaving his beard and idea to rename his new Startup Comparetokar.com (I tell you, these beginners :P). I was little amused, not knowing that India is getting its own campaign on Startup, inaugurated by none other than Shri Narendra Modi in his own candid manner.
Though I couldn’t follow the complete event as I was in Bangalore and not in Delhi and these news channels have some issues with not showing complete event. But after going through newspapers and internet research, I could find out the 3 takeaways from the event. I will try to explain each takeaway in a simple language, so that it is easy to understand and if required implement:
Takeaway 1- Startup-A confusing term:
How do you define a startup? A startup is an entity which is registered and operating in India not prior to five years, from the date of announcement of the plan and an annual turnover less than or equal to 25 crores in any preceding year. This means of you have a turnover of 25 crores in one of the five years; then sorry you are not eligible to be called a Startup.
Also your company should be working for innovation, development, deployment or commercialisation of a new product, processes driven by technology or intellectual property. So if you have started a company which gives onsite training to college students on numerous courses, then are you eligible to be called a startup, given all above criterions are met?
One more thing, startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purposes. If such board is set up, things should be online and time bound so that startups can actually put their mind in expanding their business and bringing more on the table.
Takeaway 2- Tax exemption for 3 years:
Sounds good right? Even for someone like me, who is still working
|Action Plan launched #StartupIndia #PMO by Narendra Modi|
9-5, it sounds motivating think about people who actually are in this business...You. But if startups are not making any profits, they actually don’t have to pay taxes. But even if some startups making some profit they can actually stay exempted for 3 years from taxes. But from what time this scheme will be applied, i.e. is it from the time when the company was registered or the time they actually starts making some profit? This has to be seen. Whatever it may be, it’s a nice thing to incorporate.
Takeaway 3- Compliance regime on self certification:
Government, either central or state won’t be sending any inspector to check whether the company is following the environment and labour laws or not for 3 years. But the compliance still persists. So startups buckle up and start taking good care of your employees’ provident fund, gratuity, contracts etc. But to avoid suo moto, of an inspector and to avoid prosecution after three years, it is mandatory to self certify all the documents and provide it to the concerned authority or verification.
There are many other agendas put forward by the government, but I found these three as the most important points out of all. If you can share your takeaways, the space below is all yours. Till then #DiscoverNewInYou #StarupIndia #Weunobstacle...
Some more insight about Startups: