Government Schemes to Help Young Startups Grow in India

The startups scene in India is now red hot, as evidenced by a NASSCOM report which reveals that the funding pouring into this segment has increased to $4.9 billion last year. This is 125% more compared to $2.2 billion the year before that, and also higher than the cumulative funding of $3.2 billion over the last five years. The total number of active investors has also grown 2.3x to 490 last year. The most heartening aspect of this startup wave is the average age of the entrepreneurs, which makes India the youngest startup nation in the world.

How Evoma helps Startups in India
How Evoma helps Startups in India

Everyone wants to help startups now. Startup incubators and accelerators, including Evoma, have packages that make it easy for startups to begin small and grow fast.

Visit to find out the advantages for entrepreneurs like you to start and grow your business at an Evoma Business Centre in Bangalore.

Karnataka Startup Cell Booster and Funding

The Karnataka Govt. has just released its new startup policy, and Karnataka is also the first state in India to announce the establishment of first dedicated startup cell (in KBITS) with the aim of promoting Bangalore and Karnataka as the ultimate start up destination in the world.

On a much broader note, the Government of India is also actively scheming to encourage and help entrepreneurs and startup founders in every way possible. Start Up India, an ambitious scheme and policy framework, has been set up to help startups begin and grow without facing any of the usual regulatory roadblocks and entry barriers that other businesses in India have to face.      

Startup India – New Incentives and Benefits Explained  

New incentives for Startups in India
New incentives for Startups in India

Easy Company Registrations

Startups will be able to complete registration formalities within a day, with a one-page company registration form. A dedicated portal and mobile application for one-point registration was launched on April 1, 2016 to simplify the process.

Income & Capital Tax Exemptions

Startups will be exempted from taxes on income for the first three years of operation if they do not distribute dividends for those years. In addition, taxes on capital gains—that have been invested in venture funds registered with the Securities and Exchange Board of India (SEBI) — will not be levied.

Faster Patent Approvals

Startups will be able to exert their intellectual property rights with ease and speed. The union government will simplify the Intellectual Property Regime and will also bear the cost of registering trademarks, designs, and patents. In addition, it will fast-track patent applications for faster approvals.

Funding from dedicated corpus fund

Startups will be able to raise funds from a dedicated startup-funding body, which will be set up with an initial corpus of INR 2,500 crore and gradually move up to INR 10,000 crore by the end of four years. The funding body will be managed by a team of leading professionals from successful startups and academia, instead of public servants.

Debt funding from formal banking institutions

Startups can raise debt funding directly through recognized banking institutions via the National Credit Guarantee Trust Company (NCGTC). A credit guarantee scheme will be set in place to allow access to the NCGTC and the Small Industries Development Bank of India, for the same. Funds of about INR 500 crores will be available for startups each year.

Freedom from regulatory and compliance inspections

Startups will be able to self-certify their compliance on key labor and environment laws with the help of a new startup mobile application. In addition, they will be exempted from inspections for  a period of three years.

Relaxation in the procurement policy

Startups that have their own manufacturing units in India will enjoy lenient procurement policies. They will be exempted from the strict “prior experience and/or turnover” criteria by central and state governments as well as PSUs.

Availability of new innovation centers

Startups will be able to avail 31 new state-of-the-art innovation centers, seven new research parks, and five bio-clusters, which will be set up under the Atal Innovation mission of Startup India. In addition, a host of new sector-specific incubators will be set up, along with 500 ‘Tinkering Labs’, and a total of seven entrepreneurship awards.

Cleaner exit

Startups will be able to make an exit within three months (90 days), using provisions from Government of India’s new bankruptcy bill.

Startup Eligibility and Registration Forms

Startup India Eligibility –

Startup India Registration Form –

Startup Cell Karnataka Registration –

Startup Cell Karnataka Funding –

Startup at Evoma –

Leave a Reply

Your email address will not be published. Required fields are marked *

Let's have a chat

Please enable JavaScript in your browser to complete this form.