The Department of Industrial Policy and Promotion (DIPP) which takes care of the Start-up India campaign initiated by our prime minister under the ministry of finance has proposed some amendments in the policies of the campaign started on 16th of January this year. The reason for this turns out to be low application turn out i.e. only 200 applications were received and only 30 got shortlisted. The most surprising fact is that one company out of those 30 got selected!
The main reason for such failure was procedural delays by the affiliated officials. The delay in reviewing application caused many problems in carrying out actions in time. Along with that there were legal issues regarding documentation. This led to rejection of many companies in the initial stage. Besides this, start-ups required a certificate of recognition from the government to access legal help for filing patents which takes really long time to get one. And finally all these steps required quite a lot of money to be completed.
Now the DIPP has decided to ease out many procedures to ensure effective and efficient work towards the improvement of start-up culture. The primary changes include processing the documents in a day’s time so that there isn’t any delay in documentation. For those who aren’t aware of required documentation they will be provided with proper counselling in helping with documentation and procedures. For those who intend to get patents or Intellectual Property Rights (IPR) registered would require filing an inter-departmental request. Other special features included are, free legal assistance in fulfilling legal procedures through their specially appointed panel. Another important update proposed is regarding the tax holiday of 3 years to be extended to 5 years.
This serves to be a good confidence builder for budding start-ups but time shall tell its real upside and downside!