Overview

1. PAN, TAN and DIN merged into single form for Company incorporation and ease in reserving name of company.
2. PF and ESIC registration are available at Shram Suvidha portal as a common online service with no physical touch point.
3. No requirement of inspection before registration under Shops & Establishment Act in Mumbai and Delhi.

1. Implementation of ‘Indian Customs Single Window Project’ to facilitate foreign trade. This allows importers and exporters to electronically lodge their Customs clearance documents at a single point.
2. Mandatory documents required for import and export reduced to only 3.
3. E-Sanchit, an online application system, allows traders to file all documents electronically.
4. The electronic self-sealing of the container at the factory has reduced time and cost for exporting firms.
5. A computerized risk management system has brought transparency and reduced frequency of custom inspections significantly.
6. Facility of Advance Bill of Entry.

1. New cases in district courts are assigned to Judges randomly through an automated system in Delhi and Mumbai.
2. E-filing of cases introduced in district courts of Mumbai and Delhi.

1. Electricity connection is now provided maximum within 15 days.
2. Number of documents for getting connection now reduced to two and no physical documents are accepted.
3. Total number of procedures reduced to 3 in Delhi and 4 in Mumbai.

1. The Insolvency and Bankruptcy Code, 2016 has introduced new dimensions in resolving insolvency in India. It is India’s first comprehensive legislation on corporate insolvency.Recently the governmnet has also introduced Pre-packagaed Insolvency for MSMEs.
2. Under Fast-track Corporate Insolvency Resolution Process (CIRP) for mid-sized companies, the process for insolvency shall be completed within 90 days with a maximum grace period of another 45 days.

1. Reduction of corporate tax to 25% for mid-sized domestic companies.
2. Domestic companies can opt for concessional tax regime @ 22% (effective tax rate: 25.17% inclusive of surcharge and cess). Such a company cannot claim any income tax incentive or exemption. Such companies are not liable to pay the Minimum Alternate Tax (MAT).
3. New Domestic manufacturing companies can opt for concessional tax regime @ 15% (effective tax rate: 17.16% inclusive of surcharge and cess) subject to certain conditions. Such a company cannot claim any income tax incentive or exemption. Also these companies are not liable to pay the Minimum Alternate Tax (MAT).
4. Robust IT infrastructure of online return filing for Indian taxpayers.
5. The Goods and Service Tax came into effect from 01st July, 2017. It subsumes eight taxes at the Central and nine taxes at the State level.
6. The Employee State Insurance Corporation (ESIC) has developed a fully online module for electronic return filing with online payment. This has substantially reduced the time to prepare and file returns.

Rebate on filing of application - Startups are provided with an 80% rebate in filing of patents vis-a-vis other companies, bringing down the cost from INR 8,000 to INR 1,600. This helps them cut down on costs in their early years. 50% rebate is also provided in filing of trademarks vis-a-vis other companies decreasing the cost from INR 10,000 to INR 5,000.
Panel of facilitators - To assist in IP applications. Facilitators are responsible for providing general advisory on different IPRs, and information on protecting and promoting IPRs in other countries. Central Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable.
Fast-tracking of startup patent applications - The patent application of startups is fast-tracked for examination and disposal. The process is much faster for Recognised Startups.

Entity will be allowed to self-certify compliance with 6 Labour Laws & 3 Environment Laws i.e. no inspections will be conducted for a period of 3 to 5 years. Inspection will only be conducted on receipt of credible & verifiable complaint of violation. This will ease the burden of compliance for the startup.
6 Labour laws are
The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
The Payment of Gratuity Act, 1972
The Contract Labour (Regulation and Abolition) Act, 1970
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Employees’ State Insurance Act, 1948

3 Environment Laws are
The Water (Prevention & Control of Pollution) Act, 1974
The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
The Air (Prevention & Control of Pollution) Act, 1981

Exemption on Profits for 3 Years - The recognised startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
Exemption from Angel Tax under section 56(2)(viib) - Angel Tax i.e section 56(2)(viib) is applicable when a closely held company issues its shares to a resident person at a price which is more than its fair market value calculated as per prescribed rules. This section becomes applicable in majority cases when startups want to raise money through issue of shares as the valuation determined for issuing shares is more than fair market calculated as per rules. However, a DPIIT recognized startup is given exemption from this section, subject to certain conditions
Relaxations in case Employee Stock Option Plan (ESOP) of Startups - In order to ease the burden of payment of taxes by the employees of the eligible start-ups or TDS by the start-up employer, TDS or tax payment has been deferred to earlier of the following period

1. On expiry of 48 months from the end of Assessment year in which ESOPs are exercised
2. At the date when employee leaves the company
3. At the date of sale of shares allotted under ESOP

Startups can bid for government tenders and become a seller to the Government through the Government e-Marketplace (GeM) and other channels
Government of India has authorised its ministries, departments and public sector undertakings to relax norms in all public procurements. Startups are given exemptions relating to

1. Prior Year Turnover
2. Prior Experience
3. Earnest Money Deposits

To provide equity funding support for development and growth of innovation driven enterprises, the government has set aside a corpus fund of INR 10,000 Cr managed by SIDBI. The fund is in the nature of Fund of Funds, which means that the government participates in the capital of SEBI registered Venture Funds, who invest twice the amount in startups (For instance, if contribution sought is Rs 100 crore under FFS, Venture Capital Fund should invest at least Rs 200 crore in Startups). The flow of funds is from Government to SIDBI to Venture Capital Funds to Startups 424 Startups including Dunzo, CureFit, Unacademy, Fresh to Home have been supported under FFS as on 31st March, 2021

Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. Funding from angel investors and venture capital firms becomes available to startups only after the proof of concept, prototype development, product trials, market entry and commercialization has been established. Similarly, banks provide loans only to asset-backed applicants. To resolve this issue the Startup India Seed Fund Scheme is introduced to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization

Ministry of Corporate Affairs has notified Startups as ‘fast track firms’ enabling them to close down operations within 90 days as against 180 days for other companies. Startups with simple debt structures or those meet such criteria as may be specified may be wound up within a period of 90 days from making of an application for winding up on a fast-track basis.

Various other benefits such as Capital Guarantee Fund for Startups, Organization of Startup Fests for Showcasing Innovation and Providing a Collaboration Platform, Launch of Atal Innovation Mission (AIM) with Self Employment and Talent Utilization (SETU) Program