Incentives for Start-Ups in India

In tune with the Start-Up India Campaign launched in India recently, the Government of India has also launched the Scheme of Facilitating Start-Ups Intellectual Property Protection (SIPP) on January 18, 2016 to facilitate the protection of Patents, Trade Marks and Designs of innovative and interested Start Ups.

The idea is to promote the Intellectual Property Rights of Start-Ups and thus encourage innovation and creativity amongst them.

For this purpose, a start-up has been defined as an entity, incorporated or registered in India not prior to five (5) years, with an annual turnover not more than INR 25 Crores (250 Million) in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. The start-up must also be certified by the Start-Up Certification Board as having an innovative business.

The scheme is inclined to assist Start-Ups in protecting and commercializing their intellectual property by providing them access to high-quality IP services and resources.

The Startup India aims to encourage more people to start a new business having innovative ideas and for that many incentives are being provided to Startups for their easy smooth functioning, such as:

• Tax exemptions for three (3) years and on Capital Gains on Investments above the fair Market Value
• Faster Exit or wind-up procedures for Start-ups
• Single platform through Mobile Apps and Portals for startups to interact with the Government
• Compliance Regime based on Self-Certification
• Relaxed norms of Public Procurement
• Legal Support and Fast-tracking Patent Examination at lower costs

Besides this, Facilitators are also being appointed to be empaneled by the Controller General of Patent, Designs and Trade Marks (CGPDTM) for the effective implementation of the SIPP.

Subsidized Fee Structures have also been made applicable to start-ups under the said scheme, for any number of patents, trademarks or designs that may be applied for by a Start-Up.