Finally at 6:30 pm today, Prime Minister Modi unveiled his ‘Startup India, Standup India’ Plan, in front of the 1500 rapt representatives of the startup community.
As the entire Indian ecosystem waited with bated breath, PM Modi announced a slew of measures aimed at simplifying compliance, exempting profits from startups for the first three years, and rolling out an action plan for boosting innovation and entrepreneurship in the country. Through these policies, he has heralded a new era in the history of Indian startups.
Here’s a look at the key highlights:
Compliance Regime based on Self-Certification: This is to reduce the regulatory burden on startups thereby allowing them to focus on their core business and keep compliance cost low. The process of conducting inspections shall be made more meaningful and simple. Startups shall be allowed to self-certify compliance with 9 labour and environment laws. In case of the labour laws, no inspections will be conducted for a period of 3 years. Startups may be inspected on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
Startup India Hub: The “Startup India Hub” will be a key stakeholder in this vibrant ecosystem and will;Work in a hub and spoke model and collaborate with Central & State governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D institutions; Assist Startups through their lifecycle with specific focus on important aspects like obtaining financing, feasibility testing, business structuring advisory, enhancement of marketing skills, technology commercialization and management evaluation; Organize mentorship programs in collaboration with government organizations, incubation centers, educational institutions and private organizations who aspire to foster innovation.
Rolling-out of Mobile App and Portal: The Government will introduce a Mobile App to provide on-the-go accessibility for registering Startups with relevant agencies of the Government; A simple form shall be made available for the same; The Mobile App shall have backend integration with Ministry of Corporate Affairs and Registrar of Firms for seamless information exchange and processing of the registration application; Tracking the status of the registration application and anytime downloading of the registration certificate; A digital version of the final registration certificate shall be made available for downloading through the Mobile App; Filing for compliances and obtaining information on various clearances/ approvals/ registrations required; Collaborating with various Startup ecosystem partners; The App shall provide a collaborative platform with a national network of stakeholders (including venture funds, incubators, academia, mentors etc.) of the Startup ecosystem and shall be made available from April 01, 2016.