NEW BUSINESS OPPORTUNITIES

Budget 2016-17- New business opportunities

A number of measures for promotion of entrepreneurship were announced in the budget 2016-17. We bring you details of specific programmes and key sectors that are likely to benefit.

Measures for entrepreneurship promotion

Stand up India Scheme

  • Promotes entrepreneurship among SC/ST entrepreneurs and women
  • Facilitates Loans from Rs. 10 lakhs to Rs.1 crore for green field projects in non-farm sector
  • Loans to be backed by Credit guarantee via National Credit Guarantee Trustee Company

Shyama Prasad Mukherjee Rurban Mission

  • A cluster development scheme for rural areas
  • Clusters to promote local entrepreneurship and to provide infrastructure for development
  • 300 clusters to be developed over three years, part funding would be from Ministry of Rural Development
  • State government to identify the clusters

Opening up road transport sector in the passenger segment

  • Government to allow private operators to operate buses for passengers, leading to opportunities for entrepreneurs to operate buses
  • Currently this sector is a monopoly of State Transport Departments
  • State governments will take a decision on whether/when they would allow private players

Parmparagat Krishi Vikas Yojana

  • Promotes organic farming
  • Fifty or more farmers form a cluster having 50 acre land to take organic farming
  • Each farmer will be provided Rs. 20000 per acre in three years for seed to harvesting crops and to transport them to market
  • The produce would be certified, farmer doesn’t have to bear certification cost

 How can we help?

If you are looking to start a new business and looking for new opportunities, we can help you understand locally available opportunities

If you already have a business idea and we can help you understand its viability

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us-www.finetrain.com

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Startup India: Action plan

Startup India Action Plan was launched on 16th January, 2016 at Vigyan Bhavan, New Delhi by the Government of India (GOI), with a mission to unleash the startups from administrative obstructions and to foster innovation and entrepreneurship.

What is a startup?

What is StartupFor availing incentives available under startup action plan, government has defined startup as an entity that is not more than 5 years old, is registered and focused on innovation.

 

 

 

                                            Startup definition
Parameters Eligibility criteria Remarks
Company type Either a LLP, registered partnership firm, private limited company Proprietorship firms are not eligible
Years in business The company should be less than 5 years old. The company’s age is measured from date of incorporation
Turnover Less  than Rs. 25 crores
Product New product, service or process(Or)a significantly improved product, service or process

 

(This  is difficult to ascertain, therefore, the government has defined the eligibility parameters, explained in the adjoining column)

The startup should:

  1. Be endorsed by an incubator established in a post graduate college or by an incubator that is funded/recognized by government
  2. Be funded by a Venture Capital fund/angel fund/PE fund that endorses the innovative nature of its business.
  3. Have a  patent from Indian Patent and Trademark office

 

Key measures:  The Startup India Action Plan can be broadly divided into three parts as shown below.

Startup Indian Action Plan

Ease of doing business

  1. Easy registration: Company registration through an app
  2. Self-certification:
  • Startups will be allowed to self-certify compliance with nine labor laws; no inspection will be conducted for three years
  • White startups (i.e., software startups) will be allowed to self-certify compliances with environment laws
  • Startups do not have to pay income tax for first 3 years
  1. Easy exit:
  • Startups allowed to close within 90 days of submitting the application for closure

Funding

  1. The government plans to set up a INR 10,000 crore fund to invest in startups, of which INR 500 crore corpus is towards a Credit Guarantee Fund, which will make it easier for startups to obtain a bank loan
  2. Exemption on long term capital gains, if capital gains are deployed in a fund that invests in startups, or if these gains are used to purchase assets in a startup
  3. The GOI plans to set up a specific fund for investing in bio-technology startups

 Fostering Innovation

  1. Industry-Academia Partnership
  • Incubators at engineering and management colleges to support technology driven innovation
  • Research parks in IITs, so that research based companies could be housed there and benefit from their research expertise
  • Funding support for setting up new incubators by both government as well as private institutions
  • Incubators for bio-technology startups
  1. Government to hold startup fest to facilitate exchange of ideas between incubators, investors and entrepreneurs
  2. Innovation focused programs for school and college students

How Finetrain Can Help:

The startup mission couldn’t have come at a better time: The business environment in India is becoming more entrepreneur friendly, as also reflected in the World Bank’s recent report on ease of doing business across countries.

If you are thinking about a new venture, now is the time to start. Finetrain can assist you in identifying locally available opportunities that can be converted into viable businesses. We can help you with:

  • Comprehensive, real-time information on local opportunities
  • Assessing viability of specific opportunity
  • Facilitating connections to sector experts and/or professionals who can help you in implementing your plans

Contact:

Write to us: bchhatre@finetrain.com

Call us: 800 888 4932

Visit us: www.finetrain.com

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