subsidy for startup

Start Up scheme and policy


If it is incorporated as a private limited company (as defined in the Companies Act, 2013) or register as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India. Up to seven years from the date of its incorporation/ registration; however, in the case of Startups in the biotechnology sector, the period shall be up to ten years from the date of its incorporation/registration. If its turnover for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores. If it is working towards innovation, development or improvement of products or processes or services, or if it is a salable business model with a high potential of employment generation or wealth creation.- subsidy for startup policy Maharashtra

Benefits of Startup India

  1. IPR Benefits – To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs, Startup India provides access to high quality Intellectual Property services and resources, including

Fast-tracking of Startup patent applications:

The patent application of Startups is fasttrack for examination and disposal

 Panel of facilitators to assist in filing of IP applications:

A panel of Facilitators is responsible for providing general advisory on di fferent IPRs as also information on protecting and promoting IPRs in other countries.

 Government to bear facilitation cost:

Central Government bears the entire fees of the facilitators for any number of patents, trademarks or designs that a Startup may file, & Startups only bear the cost of the statutory fees payable.

 Rebate on filing of application:

 Startups are provided an 80% rebate in filing of patents vis-à-vis other companies. This helps them pare costs in the crucial formative years. 50% rebate is also provided in filing of Trademarks vis-à-vis other companie

2. Relaxation in Public Procurement Norms

All Government of India Ministries / Departments / Public Sector Undertakings have authorised to relax norms in all public procurements, subject to meeting quality and technical specifications. Startups are entitle to avail exemption on:

• Prior Turnover and Experience. Earnest Money Deposit. Know more about the government tenders

3. Self-Certification under Labour and Environment Laws

To reduce the regulatory burden on Startups thereby allowing them to focus on their core business & keep compliance cost low, Startups are allow to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 5 years from the date of incorporation.

In respect of 3 Environment laws, units operating under 36 white category industries (as published on website of Central Pollution Control Board) do not require Environment clearance under 3 Environment related Acts for 3 years.

4.Faster Exit for Startups

MCA has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies. An insolvency professional shall appointe for the Startup, who shall be in charge of the company for liquidating its assets and paying its creditors within six months of filing an application in this regard.

5. Fund of Funds for Startups

   To provide equity funding support for development and growth of innovation driven           enterprises, the government has set aside a corpus fund of 10,000 crores managed by SIDBI. The Fund is in the nature of Fund of Funds, which means that the Government participates in the capital of SEBI registered Venture Funds, who further invest in Startups.

6. Tax Exemption for 3 years       

The profits of recognis Startups that are grant an Inter-Ministerial Board Certificate are exemptfrom income-tax for a period of 3 years out of 7 years since incorporation. This fiscal exemption is aim at facilitating growth of business and meeting the working capital requirements during the initial years of operations

7. Tax Exemption on Investment above Fair Market Value

   If a Startup, having certificate from the Inter-Ministerial Board Certificate, receives any consideration for issue of shares that exceeds the face value of such shares, then the aggregate consideration, up to Rs. 10 Crore, receive for such shares that exceeds the fair market value of the shares is exempte from tax.

Eligibility for Startup Registration

  • If a company is form, that company must a private limited company or limited liability partnership.
  • The company should not be more than five years old, and if the total turnover of the company is more than 25 crores, then that company will not be eligible for this scheme.
  • Any company should get approval from the Department of Industrial Policy and Promotion (DIPP).
  • For the company to receive approval from the DIPP, the firm must funded by an incubation fund, angel fund, or private equity fund.
  • Any company or firm should seek a guardian guarantee from the Indian Patent and Trademark Office.

Schemes  for startups

  1. The Venture Capital Assistance Scheme
  2. Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)

3. Stand-Up India for Financing SC/ST and/or Women Entrepreneurs.

4.     Dairy Entrepreneurship Development Scheme

5.     Multiplier Grants Scheme

6.     Biotechnology Ignition Grant (BIG) Scheme

7.     Sustainable Finance Scheme

8.     Coir Vikas Yojan

9.     Amended Technology Upgradation Fund Scheme (ATUFS)

10.  Central Sector Scheme for Promotion of International Co-operation in AYUSH

11.  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

12.  Agro Processing Cluster Scheme

13.  Research & Development In Processed Food Sector

14.  Creation / Expansion of Food Processing & Preservation Capacities

15.  Drugs & Pharmaceutical Research

16.  Mega Cluster

17.  Development/Upgradation of Watermills and setting up Micro Hydel Projects



Startup  Policy

 Maharashtra Startup Policy 2018-2023

Over a period of five years i.e. 2018 to 2023, the Maharashtra State Innovative Start-Up Policy 2018 (the “Policy”) sets out to achieve the following:  Attract angel and seed stage investment of INR 5,000 Cr Develop at least 15 incubators in collaboration with industry and academia  Facilitate incorporation of at least 10,000 start-ups  Create 500,000 direct and indirect employment opportunities

the benefits being provided by the Government of Maharashtra, startups must fulfill the eligibility criteria and should register with the State. Support will be provided to startups across stages i.e. idea, growth, and mature stage. One possibility is to create an organization which may allow different startups to commence operations as an independent vertical and then to spin off after maturity


  1. Tax  Holiday

Start up  may   reimbured in lieu  of the  state good  and services tax  paid  by them whenever  system credit  for the same is not  available  to the coustomer of these startup

  • Stamp duty and registration fees

For recognized  incubators or start ups  that wish to  rent space  , 100%  of stamp duty  and registration  fees may  compensated  for first three year  and 50%  for 2nd three year

  • Quality testing assistances

The state may take up  80% of quality testing  costs  incurred  by start ups  at BIS  accredited  faacilities

  • Patent filing  Assistances

To mitigate  the limited  manpower  and resources  at start ups  disposal  the state will  provide  assistance – both financial  and technical  in filling of patent , Trade mark  and design . start up  shall be provide  with an  80%  rebate  in patent filling  costs up to Rs 2 lakh in Indian patent . …… …… For more info click

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