Governments Schemes for Start-up 2023
India is a successful Start-Up company globally because the number speaks and the government actions. India falls into the row of 3rd largest ecosystem for Start-Ups with over 77000 recognized Start-Ups.
Start-Ups are the first stage of operations and can be founded by one or more entrepreneurs. The cost at the beginning of the business journey is high with the limited revenue. This business model is focused on a single product or service, which can later be enhanced into chain products or services.
A Start-Up is started with an idea. It is about understanding the demand for some product or service and how you can saturate it with the least cost. The next question that might linger around your mind is how to start a Start-Up. Well, for having a Start-Up, the next thing you need is support. Support for a Start-Up comes with finance and here comes the Start-up India Schemes.
Start-Up India is the mission of the Prime Minister sentenced to help youth become entrepreneurs rather than employees. There are various government schemes for a Start-Up in India. To connect with those schemes, one needs to be informed about them. Through these chunks of reading, figure out how well you can make use of Start-Up India Government schemes.
Let’s figure out some Government helping hands for Start-Up India together.
Types of Start-up India Schemes
Finance is the biggest hindrance for any Start-Up. Whether we talk about Xpressbees, Games24*7 or Amagi, financial support from a secured source is craved. Government support is important, from the journey of unsuccessful Start-Ups in India to successful Start-Ups.
Few of the Start-Up founders are a layman and fail to understand complex tax rules and finance settings by the Government to use those; I will pass you on in brief about various schemes that Government sets to support Start-Up in India.
Some of the business Start-up Loan by Indian Government
ATAL Innovation Mission (AIM)
A Government flagship to promote a culture of innovation and entrepreneurship. This was set up in 2016 with a holistic approach to creating a problem-solving, innovative mindset. INR 150 Crore is allotted to AIM to support academia, industries and Start-Ups.
Pradhan Mantri Mudra Yojana (PMMY)
Micro Units refers to Mudra here. These Mudra provide refinance support to Banks/MFIs for lending to micro units’ loan up to 10 lakhs. Through this, a Start-Up can take a loan of up to 10 lakhs without any collateral.
Start-Up India Seed Fund (SISF)
Through this scheme, a Start-Up can get financial assistance for proof of concepts, market entry and commercialization. The incubator will provide seed funding to the eligible Start-Up, starting from INR 20 lakhs to up to INR 50 Lakhs.
Credit Guarantee Trust Fund for SMSE
This is one of India’s largest Government Schemes to support Start-Up India. Through this scheme, micro-businesses, small businesses and Start-Ups can get a business loan up to a maximum of INR 1 Crore without any security.
Credit Linked Capital Subsidy (CLCS)
In this Government Scheme for Start-Up India, upfront cash support is provided to small-scale industries. The support is provided for purchasing a new plant on a self-conductive or hiring basis. The agenda is to upgrade manufacturing with better technology and support.
The Government started this Start-Up India scheme to promote software product companies in India. Funding from the Government of up to INR 40 Lakhs is provided, and the amount will depend upon the business’s growth stage.
Eligibility criteria- To apply for Government Schemes
Prime Minister Narendra Modi has fuelled Start-Up India since January 16, 2017. Before that, a list of eligibility criteria to enjoy the Start-Up scheme was listed. Below we will give you a crisp understanding of the eligibility criteria to enjoy the Start-Up schemes in India:
- A Start-Up has to be registered as a Private Company, LLP or Partnership Firm.
- It should not involve the business of restructuring.
- It must not be older than 5 Years or should not cross half a decade.
- Annual Turnover should be lower than INR 25 Crores.
- The Start-Up should work on innovation, development and commercialization of new products.
- Approval from DIPP as the business is innovative is a must.
- For Partnership- 51% of Start-Up company shares should be owned by women or individuals belonging to SC, ST. There are various government schemes for women to support business, and in order to avail of those, this eligibility is a must.
To initiate the Start-Up India loan procedure under any Government scheme you are required to submit the following documents to any financial body or bank:
- 2 Passport Size Photograph of the owner or the owners.
- PAN CARD of the Owner
- Passport of the Owner
- Aadhar Card of the Owner
- Postpaid bill.
- Voter Card of the Owner.
- Bank Statement of past 6 months.
- Income Tax return and salary slips.
- Bank Verified signature proof is needed.
- Cancelled Cheque.
How to apply for Government schemes for Start-up?
To apply for any Government Schemes for Start-Up India support, you can do either of the following:
- Approach the bank branch where your business’s current account is registered or where your account is registered.
- You can apply to the schemes directly from the Indian Government Websites.
- You can also get in touch with the Lead District Manager for fund help under Government Scheme.
Benefits of Start-up Scheme by Government
Support from Government is considered the safest. No risk and no pressure of mortgage grounds are found here. With the following correct path, any Start-Up business can get funding from the Government.
Exposure of Huge Market
Start-Ups in India, with a population of more than 1.3 billion, open the door to a huge market. When funded by the Government, a business can operate seamlessly in this market.
The government provides a list of trademarks and patents for the Start-Up. The high-quality trademark includes fast examination patent fees. The government bears those facilitator fees, and the Start-Ups are asked to bear only statutory fees. By this Government reduces the cost of Start-Up by 80%.
If a Start-Up gets the certificate from Inter-Ministerial Board, they are exempted from income tax for 3 Years.
When is the time to look for other schemes?
As stated before, Start-Ups are also founded by people who are laymen. With no experience with Government rules and regulations, it gets very tough for them to comply with the process of obtaining those Government funded benefits.
Apart from the mentioned problem, a Start-Up in India can use Government Schemes for Start-Ups in India.