Startup India Scheme is an initiative of the Indian government, the primary objective of which is the promotion of startups, generation of employment, and wealth creation. It was launched on the 16th of January, 2016 by Prime Minister Narendra Modi at Vigyan Bhawan, New Delhi.
Stand Up India Scheme
Stand-Up India Scheme Facilitates bank loans between Rs 10 Lakhs and 1 Crore, to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. The loans are granted to at least one woman borrower per bank branch. The scheme aims at promoting woman entrepreneurship among the scheduled castes and scheduled tribes.
Stand Up India is a special government scheme which aims to financially empower SC/ST and women entrepreneurs of the country. It also aims to get rid of License Raj and set up Greenfield enterprises. An amount ranging from Rs 10 Lakhs to Rs 1 Crore can be borrowed to start a manufacturing, trading or service unit. The loan tenure is 7 years. These loans are to be granted to at least one SC or ST and at least one woman borrower per bank branch.
Features Of the Scheme, The following features make the scheme a stand-out factor:
New-entrants are granted a tax-holiday for three years.
The government has provided a fund of Rs.2500 crore for startups, as well as a credit guarantee fund of Rs.500 crore rupees.
Eligibility For Startup Registration
- The company to be formed must be a private limited company or a limited liability partnership.
- It should be a new firm or not older than five years, and the total turnover of the company should be not exceeding 25 crores.
- The firms should have obtained the approval from the Department of Industrial Policy and Promotion (DIPP).
- To get approval from DIPP, the firm should be funded by an Incubation fund, Angel Fund or Private Equity Fund.
- The firm should have obtained a patron guarantee from the Indian patent and Trademark Office.
- It must have a recommendation letter by an incubation.
- Capital gain is exempted from income tax under the startup India campaign.
- The firm must provide innovative schemes or products.
- Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network must be registered with SEBI ( Securities and Exchange Board of India).
Register Your Company
As have been observed, registration on startup portal can be done only through for the following firms:
- Partnership Firm
- Limited Liability Partnership Firm
- Private Limited Company
Partnership Firm: Partnership firm is registered under the Partnership Firm Act. To start a partnership firm, the concerned parties have to draft a partnership deed where the terms and conditions of the partnership firm will be mentioned. This partnership deed must be registered with the registrar of firms. We can help you with the formation of a partnership firm. For more details, click here.
Limited Liability Partnership Firm: A Limited liability partnership firm is registered under the LLP Act. Both partnership firm and LLP are very similar, but LLP has more in common with a private limited company like limited liability protection, transferability, etc. For more details on LLP registration, click here.
Private Limited Company: The private limited company is the most popular type of legal entity in India. Know more about company registration here.
Application Procedure
Step 1: Log on Startup India Portal https://startupindia.gov.in
Step 2: Click on registration
Now enter the all these details.
- Enter your legal entity
- Enter your business registration number
- Enter the registration date
- Enter your PAN number
- Enter the address, pin code and state
- Enter details of authorized representatives
- Enter the details of partners
- Upload the required document by self attestation
- File the registration certificate of the company
Startup business loan eligibility:
Startup India Scheme is an initiative of the Indian government, the primary objective of which is the promotion of startups, generation of employment, and wealth creation. The eligibility criteria of startup India are as follows:
- It should be a new firm or not older than 5 years. The total turnover of the firm should not exceed Rs 25 crores.
- The company must be a private limited company or a limited liability partnership (LLPs).
- To get approval from DIPP, the firm should be funded by an Incubation fund, Angel Fund or Private Equity Fund.
- The firm should have obtained a patron guarantee from the Indian patent and trademark office.
- The firm must have a letter by incubation.
- The firm must provide innovative scheme and products
- The firms should have obtained the approval from the Department of Industrial Policy and Promotion (DIPP).
- Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network must be registered with SEBI.
Startup business loan interest rate:
The rates of interest and tenure of repayment vary across banks. However, the interest rate ranges from 10.99% to 21% a year. A processing fee is also charged, on the amount borrowed. The tenure of repayment of the loan is up to 5 years.
Source: Startup India, SEBI, Bank, IndiaMoney, Indiafiling, CaclubIndia, Startfund, StartupMitra ETC
