6 Startup Benefits That Every Indian Entrepreneur Needs To Know About

If you are planning a startup in India, then there has never been a better time to put your plans in motion. Several new schemes and benefits have been introduced by the government that makes it very easy and convenient for anyone to set up a company in the country. Below, we look at six such benefits reserved for startups that you must definitely know about.

1- Three Year Tax Exemption

Yes, you read that right. For full three years from starting your operations, you won’t be liable to pay any taxes on the profits generated from the venture. However, this will require a certificate from the Inter Ministerial Board (IMB).  Usually, you would have had to pay around 30% tax on the annual profits. So, if you had generated a profit of Rs 10 lac in the first year, then you would have been liable to pay Rs 3 lac as taxes. But with the three year exemption, you can keep that Rs 3 lac in your business and invest it in other productive areas. Now, remember that you may still be required to take a GST registration before commencing operations. And if you need help with the GST registration, consider visiting the website at quickcompany.

2- Patent Benefits

Startups can file for patents at a reduced cost. In fact, you only need to pay about 20% of the actual filing fee charged to regular businesses. So, if your business is focused on research and development, the lower patent fee will definitely help you cut down your patent-related expenses.

3- Tender Applications

When applying for government tenders, there is often a clause that mandates “prior experience/turnover”. What this meant is that only established companies who have handled large-scale projects similar to the one in the tender could be eligible to apply for it. But now, any startup can apply for government tenders without having to show any experience. As such, you can literally just begin your business today and start bidding for tenders right away.

4- Quick Exit

Startups may need to wind up quickly when it decides to do so. And this is something that the government took into consideration when it formulated new laws for startups. Hence, a speedier exit process was introduced. Now, you can apply for winding up your business and can exit in just about 90 days from application.

5- Easy Compliance

If you think that setting up a startup requires spending too much time trying to adhere to the various compliance regulations, then you are wrong. The government has introduced measures that allow a startup to self-certify the compliance for about three environmental and nine labor laws. This can be done through a simple mobile app.

6- Special Schemes

Women and depressed classes from the SC/ST category have good news when it comes to setting up a startup business. There is a Rs 500 crore fund specially created to provide necessary funding and support for these groups. So, be sure to check up on it if you belong to any of these categories.

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