Important benefits that start-ups enjoy in India
Starting a business is no easy feat. In addition to the various legalities and paperwork involved, there are also a number of important decisions to be made. One of these decisions is choosing where to start your business. While there are many factors to consider when making this decision, one important factor is the benefits that your business will enjoy. And if you’re looking for a country with a favourable environment for start-ups, India is a great option.
In this article, we’ll explore some of the important benefits that start-ups enjoy in India. From access to funding to a large pool of talent, read on to learn more about why India is a great place to start your business.
Tax exemption – In India, start-ups are entitled to a number of tax benefits and exemptions. These include:
-Exemption from corporate tax for the first three years of operation
-Exemption from capital gains tax on profits earned from the sale of shares
-Exemption from customs duty and excise duty on imported goods
-Exemption from value added tax (VAT) on locally sourced goods and services
Start-up India initiative – The Narendra Modi government has launched the Start-up India initiative with an aim to boost the start-up ecosystem in the country. Under this initiative, start-ups will enjoy a number of benefits, including:
- Access to funding: Start-ups will have access to a Rs 10,000 crore fund set up by the government to support them.
- Tax breaks: Start-ups will be exempted from paying income tax for their first three years of operation. Additionally, they will not have to pay capital gains tax on investments made by angel investors and venture capitalists.
- Easy regulations: Start-ups will be able to self-certify compliance with labour and environmental laws. They will also be exempt from inspections by regulatory authorities for a period of three years.
- Mentorship and support: The government will setup a network of mentors to support start-ups. Additionally, it will also provide them with access to incubators and accelerators.
Low cost of labor – The cost of labor in India is relatively low when compared to other countries. This makes it an attractive destination for start-ups who are looking to reduce their costs. Additionally, the availability of skilled labor in India is high, making it easier for start-ups to find the personnel they need to get their businesses up and running quickly and efficiently. If you are looking to start your own business, India is a great place to build your own business.