The Department of Industrial Policy and Promotion (DIPP) also known as the Department for the Promotion of Manufacturing and International Trade (DPIIT) is responsible for the design and execution of promotional and production initiatives for the growth of the industrial sector, taking into account national goals and socio-economic objectives.
- DPIIT-Recognized Startups are qualified for numerous advantages such as:
Intellectual Property Rights (IPR) benefits - Startup India offers access to high-quality Intellectual Property services and tools to encourage understanding and acceptance of IPRs by Startups and enable their security and commercialization of IPRs.
- Relaxation of public procurement requirements
- The Government of India has approved its ministries, agencies and public sector undertakings to loosen requirements in all public procurement procedures. Startups are entitled to an exception on the use of
■ Previous Turnover
■ Previous Experience
■ Deposit of Earnest Money
● Self-Certification under Labour & Environment laws Reducing the regulatory pressure on start-ups, helping them to concentrate on their core market and keep enforcement costs down.
● Fund of Funds for Startups (FFS)
○ In order to provide equity capital funding for the creation and growth of innovation-driven companies, the Government has set aside a Corpus Fund of INR 10,000 Crores operated by SIDBI. The Investment is in the essence of the Fund, which means that the Government shares in the money of SEBI registered Venture Funds, which spends twice the sum in Startups.
● Faster exit for Startups
○ Operations by other businesses within 90 days vis-a-vis 180 days. Insolvency practitioners shall be assigned to the Startup, who shall be responsible for the notification by the Ministry of Corporate Affairs of Startups as ‘fast track companies’ allowing them to liquidate their properties and pay their creditors within 6 months of filing an application in this regard.
● Can apply to IMB for the benefit under section 80 IAC: Income Tax exemption for 3 out of 7 years