Startup Buzz: Portal & Mobile App for Startups launched

There’s good news for startups in India. The government launched a dedicated online portal and a mobile application, to enable easy one-day registration process for startups. A real-time recognition certificate will be available for download upon completion of the application process. Another separate portal has been launched that will act as a single-window interface for information on intellectual property rights (IPR).

This is a significant development as it comes in the backdrop of the announcements made during the launch of the ‘Startup India’ event by Prime Minister Modi in January 2016, which aims to create a strong ecosystem for fostering the growth of startups in the country. The small and medium enterprises and startups, especially in the technology sector, stand to benefit from these key measures and developments.

The portal will serve as a single point of contact for the entire startup ecosystem and will be eventually integrated with 'Make in India' portal. It seeks to provide all information about tax benefits, notifications issued by government ministries, information about incubators, VCs, angel funds, IPR support and more.

Those entities that fulfil the criteria (as per the definition of a startup) and are incorporated/registered in India, can obtain recognition as a startup to avail various benefits listed in the Startup India Action Plan. The process of recognition is simple and user friendly. It involves a single page application form that a user can fill either through a web interface or through mobile app. The formats of the recommendation/support letters that need to be attached as part of the application form have also been published on the portal and mobile app. A key feature of the site will be the Startup India Hub, established within Invest India, to facilitate exchange of knowledge.

The Department of Industrial Policy and Promotion has developed the portal and set up a board to quickly verify the eligibility of startups opting to avail tax and IPR-related benefits. The startups will be required to pay only statutory fees. As per Ramesh Abhishek, Secretary DIPP, "A digital version of the final certificate of recognition is available for download, through the portal and mobile app. A request for certificate of eligibility for tax exemptions from Inter-Ministerial Board will be made simultaneously by selection of a simple option.” The DIPP would also at a later stage equip the Startup India portal to get the companies registered under the Companies Act.

The Startup India portal will serve as a single point of contact for clearances, approvals and registrations, and for companies to apply for schemes under the Startup India Action Plan; thus facilitating easy exchange of information between all stakeholders.

India is home to over 18,000 startups; making it the third-largest in the world after the US and England. All the key developments are in tune with the government’s efforts to create a conducive environment for growth of startups and give impetus to budding entrepreneurs. During the Union Budget for 2016-17, the government announced a slew of initiatives for startups, including 100 percent tax exemption for three years and improved patent laws. Under the 'Start Up India Action Plan', the government proposes to establish a 'Fund of Funds' which intends to raise Rs 2,500 crore annually for four years to finance startups. The government also has a many large funds in the pipeline for startups. Only time will tell to what extent the Startup Ecosystem is benefitted from all these measures.