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Survey says that most of the start ups failed because of the weak financial backups. Efficient business plans cannot be implemented due to crisis in financial end. Stand up India is definitely a smart initiative to encourage the start ups in the country. As we know that the loan is for the people who live under scheduled caste and tribal group, women who are widower and such. Union Cabinet ministry said that expectedly 2.5 lakh borrowers will be benefited from this scheme.
According to the Union Cabinet Minister, government has already released INR 10, 000 crores to refinance the widow entrepreneurs through SIDBI and NCGTC. It was said to be an initial amount to start the venture which means the amount can go beyond the mentioned limit.
For the scheduled caste and schedule tribes along with women entrepreneurs will get loan of minimum 10 lakhs and maximum of 100 lakhs by institutional credit structure. However the loan is payable to the applicants is only for the start-ups that fall under non-farm sectors.
The repayment time for the loan is up to 7 years which is quite better unlike other schemes.
There will be an online portal where applicants can register their names and nature of business. Of course there will be some more documents like ID, PAN and such must be submitted before applying for the loan.
Late environmental law inspection: only after you self certify yourself, you will be required to comply with the environmental law regulations.
No Inspection for 3 years: as per the regulation of this scheme any labor law related inspection will not be carried out on the startups for the first three years
High rebate: the startups can now claim up to 80% rebates on patent costs. This means that if the startup applies for a patent, the government will give them an 80% rebate. In addition to that, the government will also be paying the fees of the facilitator that helped the startup to obtain the patent.
Faster and cheaper patent obtaining: Under this scheme it is also mentioned that you would be able to obtain patents faster for Intellectual Property Rights (IPRs). Also the procedure for filing patents has been simplified due to this itself. The fees for patents have been reduced as well.
Tax exemption: in addition to no inspection, tax emption is also applicable for the first three years. However your startup will be eligible for tax benefits only after you obtain a certificate from the Inter Ministerial Board.
Benefits for manufacture sector: if your startup is in the manufacturing sector, there’s good news for you. Under this scheme, the eligibility criteria of having a prior experience or turnover experience to open a business has now be removed – without compromising on the quality of the goods produced.
Exemptions on capital gains: tax exemptions on capital gains can now be claimed by the investors under this scheme. The tax exemption regulation which is applicable for newly formed MSMEs will now be extended to all start ups.
Easy Registration: earlier the startups had to struggle very much to get them registered. Not anymore. The government will launch a mobile app on 1st April 2016 whereby the registration process will take only a day to complete. Also a web portal will be launched later to give clearances, approvals, etc., in no time.