The Indian startup ecosystem has grown exponentially and deepened its presence in the past few years. It has opened up a plethora of new opportunities for those with ideas that can be implemented to create wealth and job opportunities.
Entrepreneurs can register their businesses as a startup to avail of benefits and subsidies allowed by the government under the Startup India scheme. To increase your profit margins and grow your business you can also register it as an MSME if your offerings are eligible. At large, the scheme looks promising for the new entrants to the MSME sector.
You must ensure your business meets the following criteria for successful registration under the scheme:
1. Your business must have only been operational for the past ten years, as calculated from its date of incorporation.
2. The business must be registered as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership.
3. The annual turnover of your business must not exceed Rs. 100 crores for any of the financial years since its incorporation.
4. The business should not have been formed by splitting up or reconstructing an already existing business; it must be an original entity.
5. The goal of the business should be towards the development of new products, processes, or services or must focus on the improvement of existing ones.
6. The business must have wealth creation capabilities and aim at the generation of employment opportunities.
Businesses eligible for availing of the benefits of the Startup India initiative enjoy government support. The government has set up quick online registration processes, offers protection from large players of the sector, along with other dedicated assistance.
The Startup India Scheme offers subsidies to new small and mid-sized businesses, enabling them to scale up fast. By registering your business under the Startup India Scheme, and as an MSME, you get benefits such as priority lending, a tax holiday of around three years, relief from compliance, and access to SEZs (special economic zones).
As the government continues to nurture startups, new businesses get access to numerous benefits. From easy sanction of bank loans at low-interest rates to excise exemptions, you get everything to grow your business. You get the flexibility to avail of R&D benefits and can even apply for government tenders with exemptions in eligibility criteria. Along with the vast experience, you get to connect with stakeholders and other experienced entrepreneurs at special events organized for the industry. The network allows you to scale and learn to grow your business.
In return, startups offer indispensable value through their innovative products and services. Startups have the power to take technology and advanced business strategies to the rural parts of the country, resulting in holistic development. The government sees it as an opportunity to create more jobs for both skilled and unskilled sections of the population, thus boosting the Indian economy. It also aims to widen the scope of Startup India further to provide equal access to opportunities for all businesses. The intention is to include more startups in the MSME industry.