Start-ups get an extended window of benefits from the government
The NDA government has now rehashed the definition of a start-up under its 'Start-up India' scheme.
This move is aimed to promote ease of business and eliminate hiccups for budding entrepreneurs in receiving incentives slotted for start-ups.
Enterprises will now be considered as a start-up for seven years from the date of their official incorporation.
Here's all you need to know.
Start-ups will now get benefits for seven years
Significant changes made
From now on, a start-up would mean an entity, which has been operating officially for 7 years or less; the previous limit was 5 years.
In case of start-ups in the bio-tech sector, the window has been pushed up to 10 years.
Furthermore, start-ups will no longer need a letter of recommendation from an incubator or industry association to avail the tax sops.
Creating more job opportunities
This extended period of tax benefits and incentives will help start-ups to solidify their stance and create more jobs.
Department of industrial policy and promotion (DIPP), which is the nodal body for Start-up India said, "These changes are an effort to ensure ease of starting up new businesses to promote the start-up ecosystem and build a nation of job creators instead of job seekers."
Love Business news?
Stay updated with the latest happenings.
Karnataka government extends a helping hand for start-ups
The Karnataka government, through its "Elevate" initiative, is now going to identify and aid 100 of the most innovative start-ups in the state.
"We're trying to identify the top 100 innovative companies and see how we can help them. Whether in the form of funding, mentoring, legal help or anything else they would want," said Priyank Kharge, minister for information technology and tourism.
Bangalore is currently the dominant hub of IoT start-ups
According to a study by Management Consulting firm Zinnov, Bangalore currently accounts for 52% of the total IoT (Internet of Things) start-ups in India.
The release said, "A wide availability of talent, thriving ecosystem of investors, access to industry experts and the presence of start-up accelerators are contributing to Bangalore's dominance."
Six Indian start-ups chosen for Google's Launchpad Accelerator Programme
Indian start-ups EdGe Networks, Fastfilmz, Indialends, RailYatri, RecipeBook, and SigTuple have been shortlisted by Google for its fourth edition of the Launchpad Accelerator Programme.
Google India Programme Manager Paul Ravindranath said, "The start-ups were short-listed for their unique value proposition and use of AI and ML to build high-impact solutions for internet users and the government's flagship initiative Digital India."