The Department for Promotion of Industry and Internal Trade (DPIIT) amended the rules a few years ago, such as the startups will be eligible for Rs.10,000 crore funds of funds from the Alternative Investment Funds, The DPIIT recognized startups can apply for Angel Tax Exemption, he DPIIT recognized startups will get an opportunity to list the product on Government e-Marketplace, contributing all these factors. The rate of startups being recognized has increased and also is allowing them to receive infrastructural assistance. Over the previous six months, the government has recognized 50,000 startups around the country, assisting them in obtaining benefits under a variety of laws and regulations. In reality, the covid-19 does not appear to have dampened the spirit in any way, as seen by the increased number of startups registered last year.
According to DPIIT, 16,287 startups were established in 2020, compared to 12,874 in 2019. IT startups account for 41% of all startups, while healthcare and life sciences accounting for 28% and education contributing for 22%. There is at least one startup in each of the 623 districts, with Maharashtra, Karnataka, New Delhi, and Gujarat having most of the companies. While 30 states and union territories have promised to support them with specific policies.
According to the ministry of corporate affairs data, there was a 27 percent increase in the number of new businesses established in 2020-21, totalling over 1.5 lakh, with another 42,000 limited liability partnership entities being incorporated during the year. Startups have made a major contribution to job creation, Employment of 5,49,842 reported by 48,093 businesses with an average of 11 employees per business.
For example, a startup that registers with DPPIT benefits from simplified compliances such as an 80% reduction in the cost of filing patents, tax exemptions, and the ability to close its firm within 90 days of its application. “STARTUP INDIA”, a government initiative was launched in 2016 to boost the domestic startup ecosystem. A company must fulfill certain criteria and must be incorporated and registered in India for at least 10 years from the date of incorporation, and must have an annual turnover of not more than Rs. 100 crores for the financial years since registration.