PM Modi Announces 5 Vital Sops To Accelerate Startups
Prime Minister Narendra Modi has released the Startup India action plan, stating that the success of entrepreneurs depends on their ability to take risk
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Prime Minister Narendra Modi on Saturday (16 January) doled out several tax exemptions and financial incentives to enthuse young entreprenuers in India. The startup action plan today, read like a startup wish list as Modi announced a flurry of sops for the startup ecosystem in India.
The announcement comes months after Modi made a whirlwind tour of Silicon Valley, meeting the chief executives of Facebook Inc, Google Inc and Apple Inc.
Here are the five biggest incentives announced by the Prime Minister:
Tax exemption for three years
All profit making startups can breathe a sigh of relief as Modi exempted them from coughing up income tax for the first 3 years of their creation.
Patent fee cut by 80%
Innovations in India can now be patented at a much lower cost as the Prime Minister cut patent fees by 80 per cent.
Capital gains tax exemption
Keeping with a long-term wish of investors, Modi announced capital gains tax exemption for venture capital investment into startups.
3-year exemption from inspections
To ease being a startup in India, Modi has exempted the country’s new sunshine sector from all inspections for the first 3 years of their existence. This is freedom from inspections into compliance of labour and environment laws, instead the government will now recognise self-certification.
Startup registration App
The government will introduce a mobile-abased app from April 1, 2016 to facilitate startup registration. This magic app will ensure the setting up of a company in just 24 hours, cutting short several permits and permissions required to set up businesses in India.