Legal Aspects for a Startup

STARTUP INDIA POLICYUnderstanding - Legal Aspects

Aims and ObjectivesAIM > To foster entrepreneurship > To promote Innovation by creating

ecosystem OBJECTIVES > India to become Nation of “Jobs

Creator” and not “Jobs Seeker” > Start a revolution for Startups

Stakeholders

Advantage India

Start Up

Incubators

VC

Govt of India

Commitments by Govt. of IndiaSimplification and Handholding

Funding Support of Rs. 10,000 Crores in next 4 years and Incentives

Incubation & Industry Acadamia Partnership

Eligibility Entity should be either: > a Private Limited Company > a Registered Partnership Firm > LLPEntity : > Should be New OR registered in last 5

years > Should not have turnover exceed Rs. 25

Cr > Working towards Innovation, IPR, new

products

Innovation means…..Working towards Innovation, Development,

Deployment or Commercialisation of: - New Products, - New Processes or - New Services Driven by Technology OR Intellectual Property

Commitments by Govt. of India

SIMPLIFICATION AND HANDHOLDING

Simplification and Handholding

Commitment 1 Simplify Labour

Laws &

Environment Laws

Simplification and HandholdingCommitment 2 Create a Platform for Startup

- Central & State Govt, Incubators

- VCs, Angels, Banks - Mentors, Legal Partners,

Advisors

www.startupindia.gov.in

Simplification and HandholdingCommitment 3 Connect via Mobile App - Register your Startup - Tracking final registration - Filing Compliances - Apply for various Schemes - Connect and Collaborate

with Startup Ecosystem

Download App…… now

Simplification and HandholdingCommitment 4 Free Legal Support for Trademark ,

Patent, Design applications - Free Legal Advise to file Trademark

and Patent Application through Empanelled Legal Consultants

- Fast Track Patent Examination - Rebate of 80% of Govt Fee for

Trademark, Patent, Design applications

Simplification and HandholdingCommitment 5 Startup can participate 20% of Govt supplies

- Startup can supply to Govt. Tenders without meeting criteria of Experience or Turnover

- No compromise with quality / technology parameters

Simplification and HandholdingCommitment 6 Faster Exit for Failed Startup

- Failed Startup can wind-up / close Company / Firm in 90 days

- New Law on Insolvency to be passed

Commitments by Govt. of India

FUNDING SUPPORT & INCENTIVES

Funding Support and Incentives Commitment 7 Funding of Rs. 10,000 Cr by Govt. of India -

- Rs. 2500 Cr every year - Fund of Funds - Managed by Professionals - LIC to be co-investors

Funding Flow Govt of India will fund to SEBI

registered Venture Capital Fund

Venture Capital Fund will invest in Eligible Start Up

Funding Received by Startup

Funding Support and IncentivesCommitment 8 Credit Guarantee on Debts

- Venture Debts to Startup by Banks and other lenders

- Rs. 500 Cr per year Thru SIDBI / National Credit Guarantee Trust

Funding Support and IncentivesCommitment 9 Capital Gain Relaxation to

Investors - Investor can invest in Fund of

Funds to get exemption of Capital Gain

- Investment in Computer Software to be considered as purchase of “New Asset”

Funding Support and IncentivesCommitment 10 Tax Exemptions - Exemption of Profits for

a period of 3 years subject to non distribution of dividends

Funding Support and IncentivesCommitment 11 Exemption to investors for

Fair Market Value - Investor can invest at any

value without any restriction on Fair Value

- Available to VC as well as Incubators

Commitments by Govt. of India

PARTNERSHIP WITH INDUSTRY & INCUBATORS

Partnership with Industry and Incubators Commitment 12 National and International Fests Commitment 13 Innovation Hubs - 500 Tinkering Labs - Sector Specific Incubators - Innovation Awards - 31 Innovation Centres - 13 Startup Centres - 18 Technology Incubators - 7 New R&D Parks

How Startup get benefits Step 1 - Check your eligibility as entityStep 2 - Check whether you have

“Innovation” Step 3 - Register with ANY ONE of the

following:- - Incubator in Post Graduate Indian College - Incubator Funded by Govt - Incubator Recognised by Govt - Funded by Incubator/Angle/PE - Patent Granted

How Startup get benefitsStep 4 – To get IPR and Tax

Benefits – get approval of DIPP about Innovation

Step 5 – Apply online on Govt Portal www.makeindia.gov.in

Step 6 – Get Registration Certificate as Startup Online

Other Legal Aspects for All StartupDecide about Legal Structure of

Startup - LLP, Partnership Firm or Company

Incorporation / Registration Initial Tax / Labour Law Registrations Legal Agreements between Founders,

Website Development Related, Technology Development Related, Employee Related, Vendors related

Registration of Trademark, Patent

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