“You can’t have a million-dollar dream with a minimum-wage work ethic.”
This means you can’t expect a high return from a low investment. The more risk you take and by putting the right effort you get the desire result. By doing 9 to 5 job not everyone is able to achieve their dreams. But they are not wrong also because doing business or starting one of their own is not an easy task. It doesn’t give an assurance that a fixed amount of money is going to be credited in your account every month.
But scenario has changed; earlier people were scared of starting a business as it requires a lot of investment and had a really complex process. Whereas in the present scenario, government has learnt the importance of startups.
Summary of Section 194M- TDS on payment to resident contractors and professionals
And they are looking forward and coming up with the new ideas to encourage people to come forward for the same. Now days, Government is providing many benefits to Startups.
Definition of startup
A startup can be defined as a young company founded by one or more entrepreneurs in order to develop a unique product or service and bring it to market. By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their families and friends or by loan of course.
Their first tasks is raising a substantial amount of money and customer to further develop the product and sell it. For that, they have to make a strong argument or they need to be unique, if not a prototype, that supports their claim that their idea is truly new or better than anything else on the market.
Everything about Section 194N- TDS on Cash Withdrawal
Government is providing benefits to startups under ‘Startup India Scheme’
Benefits given to startups
The benefits for the startups are:
1.Simplified process-
At present for registering anyone as a startup you just need to visit a mobile app and a website which is http://www.startupindia.gov.in/ . This website and app is launched by the Government of India for the ease in the process of registration. Interested person can fill up a simple form on the website and upload required documents. The entire process is completely online.
2.Reduction in cost or less investment required-
The major investment or one of the most expensive part of business is getting their trademark or patents registered. But now, government provides us with the list of facilitators of patents and trademarks who provides high quality Intellectual Property Right Services including fast examination of patents at lower fee. The government will be bearing all facilitator fee and the startup will just have to bear only the statutory fee. This will lead to a saving of up to 80%or we can say reduction a high amount in cost of filing patents.
Income Tax on selling of Shares and Securities
3.Easy access to Funds
Government is providing funds to the startups as venture capital. A fund of 10,000 crore rupees is set-up by the government. Moreover, government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
4.Tax holiday for 3 Years
To give relief Startups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).
5.Apply for tenders
Startups can now also apply for government tenders. They are free from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.
Easy way to link Pan with Aadhar
6.Research & Development facilities
Seven new Research centers will be set up to provide facilities to startups for the business in R&D sector.
7.Less time-consuming compliances
As said before, compliances have been simplified for startups to save time and money. They shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws.
8.Tax saving for investors
Those who invest their capital gains in government-based investment funds will get relief from capital gains. This will succeed in drawing more investors from startups.
September Tax Calendar
9.Choose your investor
After this plan, the startups will have an option to choose their investors.
10.Easy exit
A start-up may close its company within 90 days of the wind-up application date.
11.Meet other entrepreneur-
Government has proposed holding two start-up festivals annually, both nationally and internationally, to allow a start-up to meet the different stakeholders. This offers tremendous opportunities for networking.
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The author of above article is Sneha Bhalotia.
