Faster Exit for Startups

The Government has established Fund of Funds for Startups (FFS) with corpus of Rs.10,000 crore to meet the funding needs of startups across the country which were 19,351 as of 24 June 2019.

The Department for Promotion of Industry and Internal Trade is the monitoring agency of FFS.

The corpus is to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds, information was given by the Minister of Commerce and Industry, Piyush Goyal, said in a written reply in the Rajya Sabha on 28 June 2019.

Small Industries Development Bank of India (SIDBI), the operating agency for FFS, has committed Rs.3,123.20 crore to 49 SEBI registered Alternative Investment Funds (AIFs).

These funds have raised a corpus fund of Rs.27,478 crore while Rs.483.46 crore have been drawn from Fund of Funds for Startups.

Salient features of Startup India action plan

Compliance Regime based on Self-Certification with an objective to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.

Startup India Hub with an objective to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.

Rolling out of Mobile App and Portal with an objective to serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders.

Legal Support and Fast-tracking Patent Examination at Lower Costs with an objective to promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual Property services and resources, including fast-track examination of patent applications and rebate in fees.

Relaxed Norms of Public Procurement for Startups with an objective to provide an equal platform to Startups across sectors vis-à-vis the experienced entrepreneurs/ companies in public procurement.

Faster Exit for Startups with an objective to make it easier for Startups to wind up operations.

Providing Funding Support through Fund of Funds with a Corpus of Rs.10,000 crore with an objective to provide funding support for development and growth of innovation driven enterprises.

Credit Guarantee fund for Startups with objective to catalyze entrepreneurship by providing credit to innovators across all sections of society.

Tax Exemptions on Capital Gains with an objective to promote investments into Startups by mobilizing the capital gains arising from sale of capital assets.

Tax Exemptions to startups for 3 Years with an objective to promote the growth of Startups and address working capital requirements.

Tax Exemption on Investments above Fair Market Value with an objective to encourage seed-capital investment in Startups.

Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform with an objective to galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.

Launch of Atal Innovation Mission (AIM) with an objective to serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas.

Harnessing Private Sector Expertise for Incubator Setup with an objective to ensure professional management of Government sponsored/funded incubators, Government will create a policy and framework for setting-up of incubators across the country in public private partnership.

Building Innovation Centers at National Institutes with an objective to propel successful innovation through augmentation of incubation and R&D efforts.

Setting up of 7 New Research Parks Modelled on the Research Park Setup at IIT Madras with an objective to propel successful innovation through incubation and joint R&D efforts between academia and Industry.

Promoting Startups in the Biotechnology Sector with an objective to foster and facilitate bio-entrepreneurship.

Launching of Innovation Focused Programs for Students with an objective to foster a culture of innovation in the field of Science and Technology amongst students.

Annual Incubator Grand Challenge with an objective to support creation of successful world class incubators in India. fiinews.com