Startup Action Plan was finally unveiled today by Narendra Modi. The plan had high expectations as it was said that it will encourage the entrepreneurs and enhance the ecosystem. Recommendations were given by industry bodies including iSpirt, Nasscom, Ficci and TiE and consultations were also held with entrepreneurs and venture capitalists to understand the issues hurdling the growth of the ecosystem.
Key Highlights of the plan:
- No inspections will be done for first three years of a startup
- No tax on profits for 3 Years
- Tax will be exempted on capital gains
- Startup Hub will be a single point of contact
- Patent policies and IPR will be simplified
- 80% rebate will be given on patent application
- Exit Policy will be introduced and allow an exit within 90 days
- A dedicated fund, worth Rs 10,000 cr will be set up
- Self-certification based compliance.
- Credit Guarantee Scheme for loans will be given
- Women Enterpreneurs will be helped with new policies
- Mobile based application will be introduced for registration of startups
- Sector specific incubators will be introduced
- To boost biotech sector, 5 new clusters, 50 incubators will be set up
- Tax exemption on investments above fair market value
