In a frequently asked questions (FAQ) for Start-up India put out on the DIPP website, the department said that any such action shall, however, be taken only after a due opportunity is given to the incubator.
Ravi Gururaj, chair of the Nasscom Product Council, said he hopes the intent is to encourage incubators or funding bodies to do due diligence and not to penalize them. “I hope the government will set up a mechanism where the recommending bodies could make a representation and populate it with credible people,” he added.
“Idea is everybody should be careful and responsible while making recommendations,” DIPP secretary Ramesh Abhishek said while briefing reporters.
DIPP on March 31 launched the promised mobile app and website through which startups could easily register themselves for seeking government incentives. It has also launched a Startup India hub partnering with Invest India which is responsible for promoting and facilitating Investments to India. The hub will be platform for all stakeholders in the startup ecosystem including venture capital funds, mentors, startups, incubators among others.
To boost the start-up ecosystem in India, Prime Minister Narendra Modi in January announced a start-up action plan, exempting them from income tax for three years to address their working capital requirements. “The exemption shall be available subject to non-distribution of dividend by the start-up,” the action plan said.
The government also defined a start-up for the purpose of government schemes as one registered in India within the past five years, has annual revenue not exceeding Rs.25 crore and one that is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
The start-ups have also been exempted from six labour laws and three green laws for a period of three years so that there is less regulatory burden on the companies, which can then focus more on their core business.
Start-ups will also be provided free legal support in filing intellectual property rights (IPR) and their patent applications will be fast-tracked at lower costs.
The DIPP has constituted an inter-ministerial board consisting of a joint secretary in the department and representatives from the department of science and technology and department of bio-technology to vet the proposals to find out the eligible start-ups for government incentives. “An application for a certificate from the inter-ministerial board shall be processed within a period of 10-25 working days,” the DIPP FAQ said.
Source: Mint