STARTUP INDIA INITIATIVE
Andaman & Nicobar Innovation & Start-up Policy-2018 was launched on 30th December 2018 for the Development of Startups in A & N Islands. The Andaman & Nicobar Islands has become the first UT to formulate Innovation & Startup Policy. The UT portal for Startup India was launched on 5th July, 2019.
The operational guidelines for fiscal incentives under the policy has been notified and uploaded in the National Portal of Startup India and also in the Administration website, wherein the UT Administration has also tried to chalk down certain Fiscal and Non-Fiscal incentives in order to give a support system to the start-ups which includes:-
- Marketing Assistance
One time Marketing/Publicity assistance upto INR 3 Lakh for taking their product/ service to the market.
- Subsidized Incubation/Co-Working space
Subsidy benefit up to 50% of monthly rent of the incubator/co-working space (Subject to a maximum of INR 5000) for a period not exceeding one year.
- Patent Cost Reimbursement
Reimbursement of cost of filing and prosecution of National or International Patent/ Trademark/Copyright application of DIPP recognized Start-ups operating in the region.
- GST Reimbursement
Reimbursement of State GST paid in sales of goods for a period of 3 years upto a maximum of INR 3 Lakh per startup per year.
- Digital Technology Subsidy :-
50% of the capital expenditure for purchase of computers, related hardware, relevant software for DIPP recognized Startups operating in the region, subject to ceiling of INR 1 lakh per start up.
- Power Subsidy
Subsidy subject to limit of INR 5 lakh pa for a period of 3 years.
Benefits for startups
Government of India has launched a mobile app and a website for easy registration for startups. Anyone interested in setting up a startup can fill up a simple form on the website and upload certain documents. The entire process is completely online.
The government also provides lists of facilitators of patents and trademarks. They will provide high quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will bear all facilitator fees and the startup will bear only the statutory fees. They will enjoy 80% reduction in cost of filing patents.
A 10,000 crore rupees fund is set-up by government to provide funds to the startups as venture capital. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
Startups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).
Startups can apply for government tenders. They are exempted from the "prior experience/turnover" criteria applicable for normal companies answering to government tenders.
Seven new Research Parks will be set up to provide facilities to startups in the R&D sector.
Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws (for list of white industries which are eligible under self-compliance – click here” ).
People investing their capital gains in the venture funds setup by government will get exemption from capital gains. This will help startups to attract more investors.
After this plan, the startups will have an option to choose between the VCs, giving them the liberty to choose their investors.
In case of exit – A startup can close its business within 90 days from the date of application of winding up.
Government has proposed to hold 2 startup fests annually both nationally and internationally to enable the various stakeholders of a startup to meet. This will provide huge networking opportunities.