The department for the promotion of industry and internal trade (DPIIT) has recognised as many as 50,000 start-ups so far, enabling them to take advantage of a plethora of tax and other incentives extended by the government under the Start-up India programme.
The last 10,000 start-ups were added in just 180 days, against 245 days for the previous 10,000 and 808 days for the first 10,000.
Currently, DPIIT-registered start-ups that were incorporated between April 1, 2016, and March 31, 2021, are allowed to apply for the income-tax holiday and the eligible ones get it for a block of three out of the first 10 years. Start-ups wishing to apply from an exemption from the so-called ‘angel tax’, also need to be recognised by the DPIIT.
Recognition by the DPIIT is also a must for applying for easier compliance norms (especially labour and environmental standards), relaxation in public procurement rules, funds under the SIDBI’s Fund of Funds and fast-tracking of patent applications at much-reduced fee, among others.
The fast registration, especially in the wake of the Covid-19 pandemic, augurs well for start-ups, many of which are struggling to cope with liquidity woes.
According to an official statement, recognised start-ups have now been spread across 623 districts. As many as 1,79,181 jobs were created by recognised start-ups in 2020-21, against 1,63,485 in 2019-20 and 92,843 in 2018-19. In the first two months of the current fiscal, the start-ups have created 34,949 jobs despite the second Covid wave, the government said.
According to the official statement, 48,093 recognised start-ups have added 5,49,842 jobs, with an average number of 11 employees per start-up.
On January 16, 2016, launching an action plan on ‘Start-up India’, the government had envisaged for itself the role of only a “facilitator” for investments, promising to cut the maze of red tape that had hampered the country’s economic growth for decades and squeezed employment opportunities.
As many as 30 states and Union territories have now announced specific start-up policies. Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat are the major states housing start-ups.