In order to boost the start – up culture in India and strengthen the start – up ecosystem by nurturing innovation and entrepreneurship, Government of India introduced the start – up action plan (“Action Plan”) on 16th January, 2016, that aims to empower the start – ups to grow through innovation and design and also address the difficulties faced by new enterprises by relaxing compliance requirements and addressing the regulatory hurdles faced by new enterprises.
The Action Plan is structured on three aspects viz.
(i) Simplification and Handholding
(ii) Funding Support and Incentives
(iii) Industry-Academia Partnership and Incubation.
The Action Plan was followed by amendments in various legislations and notification issued by the government under various enabling legislations, to give effect to the road map laid down by government while introducing the start – up action plan.
The action points in the Action Plan have been implemented without much delay, which has considerably reduced the number of compliance requirements for a new enterprise. Before analysing the benefits available under the Action Plan, it is important to understand when an entity qualifies as a startup under the Action Plan.
I will be discussing the various benefits available to startups in the regulatory and legal sphere in my subsequent posts.
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