NEW DELHI -- Indian Prime Minister Narendra Modi on Saturday unveiled a slew of incentives to boost start-up businesses, offering them a tax holiday and inspector raj-free regime for three years, capital gains tax exemption and Rs 10,000 crore corpus to fund them.
Prime Minister Narendra Modi addressing the gathering at the launch of Start-Up India at Vigyan Bhavan on January 16, 2016 in New Delhi, India.
He also announced a self-certification scheme in respect of nine labour and environment laws and said there will be no inspection during the first three years of launch of the venture.
Also, a liberalised patent regime is being brought to help start-up businesses register patents, for which the fee will be slashed by 80 per cent.
Addressing the first conference of start-up entrepreneurs, Modi announced an action plan to boost such ventures which are seen as key to employment generation and wealth creation.
This start up movement is not merely guided by money or name & fame. The purpose is beyond that: PM on start up entrepreneurs #StartupIndia
— PMO India (@PMOIndia) January 16, 2016
India, which has the third-largest number of start-ups globally, will also support the ventures by removing the criteria of experience and turnover for bagging government procurement contracts.
#StartupIndia for a prosperous India. pic.twitter.com/E4CahfAhbJ
— Narendra Modi (@narendramodi) January 16, 2016
Modi said profits earned by start-ups will be exempt from payment of income tax during the first three years of business. To boost financing, a 20 per cent tax on capital gains made on investments by entrepreneurs after selling own assets as well as government-recognised venture capitalists will also be exempt.
He further said an unencumbered easy exit option will be provided under the bankruptcy Act so that start-ups can exit within 90 days.
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