Lok Sabha Question No. 198 (UNSTARRED), answered on 2022-12-07
Subject: Start-ups in Tamil Nadu
Ministry: COMMERCE AND INDUSTRY
Asked by: DNV Senthilkumar. S.

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 198.

TO BE ANSWERED ON WEDNESDAY, THE 07 TH  DECEMBER, 2022.

## START-UPS IN TAMIL NADU

## 198.   DR. DNV SENTHILKUMAR S.:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the district-wise number of Start-up companies launched in Tamil Nadu during the last three years and the current year;
- (b) the total funds raised by these Start-up companies so far and the details of profits made by them;
- (c) whether there is any proposal with the Government to ease the regulatory regime for Start-up companies and if so, the details thereof; and
- (d) the  details  of  other  steps  taken  by  the  Government  to  promote  Start  up  India Programme in the State of Tamil Nadu?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a): Under  Startup  India  Initiative,  entities  are  recognized  by  the  Department  for Promotion of Industry  and  Internal  Trade  (DPIIT)  as  startups  as  per  eligibility conditions  prescribed  under  G.S.R.  notification  127  (E)  dated  19th  February, 2019. The district-wise detail of startups recognized by the DPIIT in the State of Tamil Nadu, in the last three years and the current year is placed at Annexure-I.
- (b): No such information is maintained.
- (c): The  Government  has  taken  various  measures  to  enhance  ease  of  doing business, raising capital and reducing compliance burden. In this regard, a list of the  53  key  regulatory  reforms  undertaken  for  startup  ecosystem  is  placed  at Annexure-II.

(d): The measures  taken  by  the  Government  to  promote  Startup  India initiative across the country, including the State of Tamil Nadu are placed at Annexure-III . All  the  initiatives  under  the  Startup  India  are  inclusive  and  are  implemented across States, cities, towns and rural areas.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 198 FOR ANSWER ON 07.12.2022.

The district-wise detail of startups recognized by the DPIIT in the State of Tamil Nadu, in the last three years and the current year (as on 30 th  November 2022) is as under:

| Districts       | 2019   | 2020   | 2021   |   2022 (as on 30 th Nov. 2022) |
|-----------------|--------|--------|--------|--------------------------------|
| Ariyalur        |        | 1      | 2      |                              2 |
| Chennai         | 344    | 380    | 515    |                            661 |
| Coimbatore      | 87     | 90     | 153    |                            186 |
| Cuddalore       | 2      | 5      | 12     |                             11 |
| Dharmapuri      | 1      | 3      | 5      |                              8 |
| Dindigul        | 1      | 6      | 12     |                             17 |
| Erode           | 10     | 13     | 29     |                             31 |
| Kanchipuram     | 62     | 76     | 109    |                            135 |
| Kanyakumari     | 4      | 10     | 12     |                             25 |
| Karur           | 1      | 6      | 9      |                              4 |
| Krishnagiri     | 2      | 12     | 17     |                             23 |
| Madurai         | 9      | 23     | 32     |                             59 |
| Nagapattinam    | 1      | 2      | 2      |                              4 |
| Namakkal        | 2      | 13     | 14     |                             15 |
| Perambalur      |        |        |        |                              2 |
| Pudukkottai     |        | 1      | 4      |                              4 |
| Ramanathapuram  | 2      | 2      | 4      |                              4 |
| Salem           | 3      | 13     | 15     |                             30 |
| Sivaganga       | 2      |        | 5      |                              8 |
| Thanjavur       | 3      | 5      | 10     |                             22 |
| The Nilgiris    |        | 1      | 4      |                              9 |
| Theni           | 1      | 4      | 1      |                             10 |
| Thoothukudi     |        | 3      | 10     |                             16 |
| Tiruchirappalli | 12     | 22     | 30     |                             48 |
| Tirunelveli     | 4      | 3      | 11     |                             16 |
| Tiruppur        | 11     | 12     | 11     |                             28 |
| Tiruvallur      | 20     | 23     | 44     |                             70 |
| Tiruvannamalai  | 1      | 3      | 3      |                             10 |
| Tiruvarur       | 1      | 1      | 2      |                              3 |
| Vellore         | 11     | 10     | 14     |                             20 |
| Viluppuram      | 1      | 3      | 4      |                              9 |
| Virudhunagar    | 4      | 9      | 8      |                             11 |
| Grand Total     | 602    | 755    | 1103   |                           1501 |

## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 198 FOR ANSWER ON 07.12.2022.

53 key regulatory reforms undertaken for startup ecosystem are as under:

## Reserve Bank of India

1.  Startup enterprises permitted to access loans under External Commercial Borrowing Framework up to USD 3 million.(Oct, 2016)
2.  A Securities and Exchange Board of India (SEBI) registered Foreign Venture Capital Investor  (FVCI)  may  contribute  up  to  100%of  the  capital  of  an  Indian  company engaged in any activity mentioned in Schedule 6 of Notification No. FEMA 20/2000, including  startups  irrespective  of  the  sector  in  which  it  is  engaged,  under  the automatic route. (Aug, 2017)
3.  An  Indian  startup  having  an  overseas  subsidiary,  may  open  a  foreign  currency account with a bank outside India for the purpose of crediting to it foreign exchange earnings out of exports/ sales made by the said entity and/ or the receivables, arising out of exports/ sales, of its overseas subsidiary. (June, 2016)
4.  SOFTEX form filed by software exporters moved online. (Feb, 2019)
5.  Under FDI Policy, tenure of Startup has been aligned with DPIIT Notification dated 19th February,2019 for the purpose of definition of convertible notes. (March 2022)

## Securities and Exchange Board of India (SEBI)

6.  Lock in period for investments made by an Angel Fund reduced to 1 year from 3 years as amended by the SEBI (Alternative Investment Funds) (Amendment) Regulations,2016, w.e.f. 04-01-2017.
7.  Angel Funds are allowed to invest in overseas venture capital undertakings upto 25% of their investible corpus in line with other AIFs as provided by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017.
8.  The upper limit for number of angel investors in a scheme is increased from forty nine to two hundred as amended by SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016,w.e.f. 04-01-2017
9.  The requirements of minimum investment amount by an Angel Fund in any venture capital undertaking is reduced from fifty lakhs to twenty five lakhs as amended by SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016,w.e.f. 04-012017
10.  'Operating  Guidelines  for  Alternative  Investment  Funds  in  International  Financial Services Centres' issued by SEBI. (Nov, 2018)
11.  Under AIF Regulations, definition of Startup has been aligned with DPIIT Notification dated 19 th  February,2019 for the purpose of investment by Angel Funds in Startups (5 th  May,2021)
12.  The  SEBI  (Alternative  Investment  Fund)  (Second  Amendment)  Regulations  2021 removes the list of restricted activities or sectors from the definition of Venture Capital Undertaking i.e. Category 1 AIFs can now invest in NBFCs.  (5 th  May 2021)

## Ministry of Corporate Affairs

13.  The financial statement, with respect to private company (if such private company is a start-up) may not include the cash flow statement. (June, 2017)
14.  A private company, which is considered as a start-up for a period of five years from the date of its incorporation, is also allowed to accept deposits from members without any restriction on the amount. (Sep, 2017)
15.  Startup defined for the purpose of Companies Act, 2013: As per the definition, a startup company means a private company incorporated under the Companies Act, 2013 and  recognised  as  a  'start-up'  in  accordance  with  the  notification  issued  by  the Department for Promotion of Industry and Internal Trade. (June, 2017)
16.  Exemption from  procedural  compliance  (e.g.  such  as  issue  of  an  offer  circular  or creation  of  a  deposit  repayment  reserve)  for  raising  deposits  from  shareholders. (June, 2017)
17.  In relation to a private company (if such private company is a startup), the annual return shall be signed by the Company Secretary, or where there is no Company Secretary, by the Director of the company. (June, 2017)
18.  A private company (if such private company is a startup) is required to conduct at least one meeting of the Board of Directors  in each half of a calendar year and the gap between the two meetings is not less than ninety days. (June, 2017)
19.  Name Reservation for Company incorporation: Rule 8, Companies (Incorporation) Rules,  2014  substituted  with  Companies  (Incorporation)  5th  Amendment  Rules, 2019,which provides for new regulations on resemblance with an existing company name, new categories of undesirable names of a company and list of words which can be used only after obtaining approval. (May, 2019)
20.  Amendment in Companies (Share Capital and Debentures) Rules, 2014: The Ministry of Corporate Affairs issued a notification on 16th August, 2019 increasing the period in which ESOPs could be granted to promoters and directors (holding more than 10% equity)  of  Startups,  from  5  years  to  10  years  from  the  date  of  incorporation  and thereby aligned the provisions of the Companies (Share Capital and Debentures) Rules with the provisions referred to in the DPIIT notification dated 19th Feb, 2019. The notification also enhanced the limit on shares with Differential Voting Rights in the Company from 26% of the total post-issue paid up equity capital of the Company to  74%  of  the  total  voting  power.  Further,  the  condition  for  the  company  to  have consistent track record of distributable profits for the last three years for issue of DVR shares has been removed. (August 2019)
21.  Corporate Social Responsibility Funds: In reference to section 135 of the Companies Act  2013, Schedule VII has been amended to include  Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and contributions to public funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and  Industrial  Research  (CSIR),  Department  of  Atomic  Energy  (DAE),  Defence Research  and  Development  Organisation  (DRDO),  Department  of  Science  and Technology (DST), Ministry of Electronics and Information Technology) engaged in

conducting  research  in  science,  technology,  engineering  and  medicine  aimed  at promoting Sustainable Development Goals (SDGs). (October 2019).

22.  As  part  of  Government  of  India's  Ease  of  Doing  Business  (EODB)  initiatives,  the Ministry of Corporate Affairs has launched a new integrated Web Form christened 'SPICe+' replacing the existing SPICe form. SPICe+ would offer 10 services by 3 Central  Govt  Ministries  &  Departments  (Ministry  of  Corporate  Affairs,  Ministry  of Labour  &  Department  of  Revenue  in  the  Ministry  of  Finance)  and  One  State Government(Maharashtra), thereby saving as many procedures, time and cost for Starting  a  Business  in  India  and  would  be  applicable  for  all  new  company incorporations  w.e.f.23rd  February  2020.  SPICe+  has  two  parts:  Part  A-for  Name reservation  for  new  companies  and  Part  B  offering  a  bouquet  of  services  viz.  (i) Incorporation (ii) DIN allotment (iii) Mandatory issue of PAN (iv) Mandatory issue of TAN  (v)  Mandatory  issue  of  EPFO  registration  (vi)  Mandatory  issue  of  ESIC registration  (vii)  Mandatory  issue  of  Profession Tax  registration(Maharashtra)  (viii) Mandatory Opening of Bank Account for the Company and (ix) Allotment of GSTIN (if so applied for) (February 2020)
23.  Amendment in Companies (Share Capital and Debentures) Rules, 2014: The Ministry of Corporate Affairs issued a notification on 05th June, 2020 increasing the period in which Sweat Equity shares, from 5 years to 10 years from the date of incorporation and thereby aligned the provisions of the Companies (Share Capital and Debentures) Rules with the provisions referred to in the DPIIT notification dated 19th Feb, 2019. (June 2020)
24.  Amendment in Companies (Acceptance of Deposits) Rules, 2014: The Ministry of Corporate Affairs issued a notification on 07th September, 2020 increasing the period of issuance of convertible note, from 5 years to 10 years from the date of issue and thereby aligned the provisions of the Companies  (Acceptance of Deposits) Rules, 2014 with the provisions referred to in the DPIIT notification dated 19th Feb, 2019. (September 2020)
25.  Amendment in Companies (Acceptance of Deposits) Rules, 2014: The Ministry of Corporate  Affairs  issued  a  notification  on  07th  September,  2020  whereby  the maximum limit in  respect  of  deposits  to  be  accepted  from  members  by  a  private company shall not  apply  to  a  start-up  company  for  10  years  from  the  date  of  its incorporation, instead of 5 years. (September 2020)
26.  Incorporation of One Person Companies (OPCs) by allowing OPCs to grow without any restrictions on paid up capital and turnover, allowing their conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India. (February 2021)
27.  Amendment in Insolvency and Bankruptcy Code, 2016: The Ministry of Corporate Affairs issued a notification on 30th August, 2022 harmonizing the definition of startup with the DPIIT notification dated 19 th  February 2019. (August 2022)

## Ministry of Finance

## Department of Revenue

28.  In the case of a domestic company, where its total turnover or the gross receipt in the previous year does not exceed two hundred and fifty crore rupees, income tax shall be charged at the rate of 25 percent of the total income. (Feb, 2018)
29.  Definition  of  eligible  business  as  stated  in  Section  80-IAC  aligned  with  Startups definition. (April, 2018)
30.  Introduction of Section 54EE in the Income Tax Act, 1961: Exemption from tax on long-term capital gain if such long-term capital gain is invested in a fund notified by Central Government. The maximum amount that can be invested is Rs 50 lakh. (May, 2016)
31.  Amendment in Section 54GB of Income Tax Act: Exemption from tax on capital gains arising out of sale of residential house or a residential plot of land if the amount of net consideration is invested in prescribed stake of equity shares of eligible Startup for utilizing the same for purchase of specified asset. (Feb, 2016)
32.  Minimum  Alternate  Tax  credit  allowed  to  be  carried  forward  up  to  fifteenth assessment years instead of ten assessment years. (2017)
33.  Exemption under section 80-IAC of Income Tax Act: Exemption to eligible Startup for any 3 consecutive assessment years out of 7 years (earlier 5 years) beginning from the year in which such eligible Startup is incorporated.(April, 2018)
34.  Exemption from tax under the provisions of section 56(2)(viib) to Startups for issue of shares above fair market value on the basis of a self-declaration to the Central Board of Direct Taxes. The aggregate amount of paid up share capital and share premium of the startup after issue or proposed issue should not exceed Rs. 25 Crore (Feb, 2019)
35.  Taxation of convertible notes - Period for which a bond, debenture, debenture-stock or deposit certificate was held prior to conversion shall be considered for determining the period of holding of such shares or debentures acquired upon conversion. (March, 2016)
36.  Amendment in Section 54GB of Income Tax Act w.e.f 1 st  April 2020: (August 2019)
- i. The condition of minimum holding of 50% of share capital or voting rights in the start-up relaxed to 25%
- ii. Extension of period under which benefit under section 54GB from for sale of residential property can be availed up to 31st March, 2021
- iii. Condition  restricting  transfer  of  new  asset  being  computer  or  computer software is to relaxed from 5 years to 3 years w.e.f. 1-4-2020
37.  Amendment in Section 79 of Income Tax Act (August 2019): Eligible Startups to carry forward their losses on satisfaction of any one of the two conditions:
- i. Continuity of 51% shareholding/voting power or
- ii. Continuity of 100% of original shareholders carrying voting power
38.  Pass through of losses allowed to Investment Funds i.e. Category I and II AIF similar to pass through of income. These amendments will take effect from the 1st April, 2020 and  will,  accordingly,  apply  in  relation  to  the  assessment  year  2020-21  and subsequent assessment years (August 2019)
39.  The investment made by Venture Capital Fund of Category-I AIF in a startup was exempted from the applicability of the provisions of section 56(2)(viib) of the IT Act. This  exemption  has  been  extended  to  all  sub-categories  of  Category-I  AIF  and Category-II AIF via introduction of 'specified funds' in the said section (August 2019)
40.  The Finance Act 2020 provides for amendment in section 80-IAC of the Income-tax Act relating to special provision in respect of specified business. The provisions of section 80-IAC, inter alia, provide for a deduction of an amount equal to hundred per

cent. of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years vis-à-vis the earlier norm of seven years at the option of the assessee and the total turnover of its business does not exceed hundred crore rupees in the previous year relevant to the assessment year for which deduction under this section is claimed. This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-2022 and subsequent assessment years. (Feb 2020).

41.  The Finance Act 2020 provides for amendment in section 80-IAC of the Income-tax Act relating to special provision in respect of specified business. The provisions of section 80-IAC, inter alia, provide for a deduction of an amount equal to hundred per cent. of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years at the option of the assessee and the total turnover of its business does not exceed hundred crore rupees vis-à-vis the  earlier  norm  of  twenty-five  crore  rupees  in  the  previous  year  relevant  to  the assessment year for which deduction under this section is claimed. This amendment will  take  effect  from  1st  April,  2021  and  will,  accordingly,  apply  in  relation  to  the assessment year 2021-2022 and subsequent assessment years. (Feb 2020)
42.  The Finance Act 2020 provides for amendment in sections 156, 191 and 192 of the Income Tax Act laying to enable employees receiving specified security or sweat equity share as perquisite under section 17(2)(vi) of an eligible startup referred to in section 80-IAC, to deduct or pay, as the case may be, tax on such income within fourteen  days  after  the  expiry  of  forty-eight  months  from  the  end  of  the  relevant assessment year; or from the date of the sale of such specified security or sweat equity share by the assessee; or from the date of the assessee ceasing to be the employee of the person, whichever is earlier, on the basis of rates in force of the financial year in which the said specified security or sweat equity share is allotted or transferred. This amendment will take effect from 1st April, 2020. As per the earlier norms, the said perquisite including ESOPs were taxed in the hands of the employee at the time of exercise of the option. (Feb 2020)
43.  The  Finance  Bill  2021  provides  for  extension  of  the  eligibility  period  to  claim  tax holiday for the startups by one more year. (Feb 2021)
44.  The Finance Bill 2021 provides for extension of claiming Capital gains exemption for investment in startups by one year i.e. till 31 March, 2022. (Feb 2021)
45.  The  Finance  Bill  2022  provides  for  extension  of  the  eligibility  period  to  claim  tax holiday for the startups by one more year. (Feb 2022)
46.  The Finance Bill 2022 capped the surcharge on the long term capital gain at 15% for unlisted companies from existing 37%. The effective rate of tax has been reduced from 28.5% to 23.9%. (Feb 2022)

## Department of Economics Affairs

47.  The Ministry of Finance now allows non-government provident funds, superannuation, and gratuity funds to invest up to 5 percent of their investible surplus in Category I and II Alternate Investment Funds (AIFs) registered with SEBI. (March 2021).

## Insurance Regulatory and Development Authority

48.  The Insurance Regulatory and Development Authority of India (IRDAI) has allowed insurance companies to invest in Fund-of-Funds (FoF) that invest within the country subject to certain conditions. (April 2021).

## Department of Expenditure

49.  Harmonization of Startup Definition under the Manual for Procurement of Consultancy and other Services with the DPIIT notification dated 19 th  February 2019.

## Ministry of Labour and Employment

50.  The Ministry of Labour and Employment now allows EPFO to invest up to 5 percent of  their  investible  surplus  in  Category  I  and  II  Alternate  Investment  Funds  (AIFs) registered with SEBI. (April 2021)

## Ministry of Electronics and Information Technology

51.  Removal of clause from Electronic Development Fund (EDF) operating guidelines stating that if a fund draws from Fund of Funds for Startups, then they cannot draw from EDF and vice versa. (Nov, 2018)

## Ministry  of  Commerce  and  Industry,  Department  for  Promotion  of  Industry  and Internal Trade

52.  Amendment in the definition of a Startup: An entity shall be considered as a Startup upto a period of ten years from the date of incorporation/ registration and turnover of the  entity  for  any  of  the  financial  years  since  incorporation/  registration  has  not exceeded one hundred crore rupees. (Feb, 2019)
53.  Ministry  of  Commerce  and  Industry,  Department  for  Promotion  of  Industry  and Internal Trade vide Gazette Notification No. G.S.R. 646(E). dated 21st September 2021 amended the Patent Rules. The Patent Rules have now extended the benefits related to 80% reduced fee for patent filing & prosecution to Educational institutions as well. (Sept 2021)

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## ANNEXURE-III

## ANNEXURE REFERRED TO IN REPLY TO PART (d) OF THE LOK SABHA UNSTARRED QUESTION NO. 198 FOR ANSWER ON 07.12.2022.

## Programs Launched under Startup India initiative

The details of various programs undertaken by the Government to promote startups under Startup India initiative across the country are as under:

1. Startup India Action Plan :  An Action Plan for Startup India was unveiled on 16 th January 2016. The Action Plan comprises of 19 action items spanning across areas such  as  'Simplification  and  handholding',  'Funding  support  and  incentives'  and 'Industry-academia partnership and incubation'. The Action Plan laid the foundation of  Government  support,  schemes  and  incentives  envisaged  to  create  a  vibrant startup ecosystem in the country.
2. Fund of Funds for Startups (FFS) Scheme : The Government has established FFS with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating raising of domestic capital, reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
3. Credit Guarantee Scheme for Startups (CGSS) : The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to loans extended  to  DPIIT  recognized  startups  by  Scheduled  Commercial  Banks,  NonBanking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered  Alternative  Investment  Funds.  CGSS  is  aimed  at  providing  credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
4. Regulatory  Reforms :  Over  50  regulatory  reforms  have  been  undertaken  by  the Government since 2016 to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem.
5. Ease  of  Procurement : To  enable  ease  of procurement,  Central  Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all DPIIT recognised startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) Startup Runway has been developed which is a dedicated corner for startups to sell products and services directly to the Government.
6. Support for Intellectual Property Protection : Startups are eligible for fast-tracked patent application examination and disposal. The Government launched Start-ups Intellectual Property Protection (SIPP) which facilitates the startups to file applications for  patents,  designs  and  trademarks  through  registered  facilitators  in appropriate  IP  offices  by  paying  only  the  statutory  fees.  Facilitators  under  this Scheme  are  responsible  for  providing  general  advisory  on  different  IPRs,  and
7. information on protecting and promoting IPRs in other countries. The Government bears  the  entire  fees  of  the  facilitators  for  any  number  of  patents,  trademark  or designs, and startups only bear the cost of the statutory fees payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
7. Self-Certification under Labour and Environmental laws : Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
8. Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
9. International Market Access to Indian Startups : One of the key objectives under the  Startup  India  initiative  is  to  help  connect  Indian  startup  ecosystem  to  global startup ecosystems through various engagement models. This has been done though international Government to Government partnerships, participation in international forums and hosting of global events. Startup India has launched bridges with over 15 countries (Brazil, Sweden, Russia, Portugal, UK, Finland, Netherlands, Singapore, Israel, Japan, South Korea, Canada, Croatia, Qatar and UAE) that provides a softlanding  platform  for  startups  from  the  partner  nations  and  aid  in  promoting  cross collaboration.
10. Faster Exit for Startups : The Government has notified Startups as 'fast track firms' enabling  them  to  wind  up  operations  within  90  days  vis-a-vis  180  days  for  other companies.
11. Startup India Hub : The Government launched a Startup India Online Hub on 19 th June  2017  which  is  one  of  its  kind  online  platform  for  all  stakeholders  of  the entrepreneurial ecosystem in India to discover, connect and engage with each other. The Online Hub hosts Startups, Investors, Funds, Mentors, Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.
12. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of  the  Act  (2019) :  A  DPIIT  recognized  startup  is  eligible  for  exemption  from  the provisions of section 56(2)(viib) of the Income Tax Act.
13. Startup India Showcase : Startup India Showcase is an online discovery platform for the  most  promising  startups  of  the  country  chosen  through  various  programs  for startups exhibited in a form of virtual profiles. The startups showcased on the platform have distinctly emerged as the best in their fields. These innovations span across various  cutting-edge  sectors  such  as  Fintech,  EntrepriseTech,  Social  Impact, HealthTech, EdTech, among others. These startups are solving critical problems and have shown exceptional innovation in their respective sectors. Ecosystem stakeholders have nurtured and supported these startups, thereby validating their presence on this platform.
14. National  Startup  Advisory  Council :  The  Government  in  January  2020  notified constitution of the National Startup Advisory Council to advise the Government on measures needed to build a strong ecosystem for nurturing innovation and startups in  the  country  to  drive  sustainable  economic  growth  and  generate  large  scale employment opportunities. Besides the ex-officio members, the council has a number
16. of non-official  members,  representing  various stakeholders  from the startup ecosystem.
15. Startup India: The Way Ahead : Startup India: The Way Ahead at 5 years celebration of Startup India was unveiled on 16 th  January 2021 which includes actionable plans for promotion of ease of doing business for startups, greater role of technology in executing various reforms, building capacities of stakeholders and enabling a digital Aatmanirbhar Bharat.
16. Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. The capital required at this stage often presents a make-or-break situation for startups with good business ideas.  The  Scheme  aims  to  provide  financial  assistance  to  startups  for  proof  of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22.
17. National  Startup  Awards  (NSA) :  National  Startup  Awards  is  an  initiative  to recognize and reward outstanding startups and ecosystem enablers that are building innovative  products  or  solutions  and  scalable  enterprises,  with  high  potential  of employment generation or wealth creation, demonstrating measurable social impact. Handholding support is provided to all the finalists across various tracks viz. Investor Connect,  Mentorship,  Corporate  Connect,  Govt.  Connect,  International  Market Access, Regulatory Support, Startup Champions on Doordarshan and Startup India Showcase, etc.
18. States' Startup Ranking Framework (SRF) : States' Startup Ranking Framework is a  unique  initiative  to  harness  strength  of  competitive  federalism  and  create  a flourishing  startup  ecosystem  in  the  country.  The  major  objectives  of  the  ranking exercise  are  facilitating  states  to  identify,  learn  and  replace  good  practices, highlighting the policy intervention by states for promoting startup ecosystem and fostering competitiveness among states.
19. Startup Champions on Doordarshan : Startup Champions program on Doordarshan  is  a  one-hour  weekly  program  covering  stories  of  award  winning/ nationally  recognised  startups.  It  is  telecasted  in  both  Hindi  and  English  across Doordarshan network channels.
20. Startup India  Innovation  Week : The Government  organises Startup India Innovation week around the National Startup Day i.e. 16 th  January, with the primary goal  was  to  bring  together  the  country's  key  startups,  entrepreneurs,  investors, incubators,  funding  entities,  banks,  policymakers,  and  other  national/international stakeholders to celebrate entrepreneurship and promote innovation.

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