Start-ups

Why is it in the news?
  • Government has proposed to relax the General Financial Rules (GFR) to enable all government organisations to accept “untested innovative goods and services solutions" from start-ups.
  • The government also plans to do away with “competitive tendering” while placing orders from such start-ups.
More in the news
    • More about the plan:
      (1) Proposal of a minimum 2% of the procurement budget of a ministry or department may be “earmarked for procurement of such goods or services which are yet to be tested or evaluated and brought to market as acceptable commercial product service or technology.”
      (2) Finance Minister in a budget speech had announced easing tax scrutiny for start-ups and those investing in such firms.
      (3) GFRs are a compilation of rules and orders of Government of India to be followed by all while dealing with matters involving public finance.
      • Incentives available to startups:
        (1) Self-Certification under 6 Labour Laws & 3 Environmental Laws.
        (2) Relaxation in Public Procurement Norms.
        (3) Faster exit under the Bankruptcy Code.
        (4) Rebates on Patent & Trademark filing fees, support from facilitators and to expedite examination of Patent application.
        (5) Income Tax exemption.
        (6) Exemption from Income Tax on investments received above fair market value.
        (7) Funding support under the Fund of Funds for Startups.
        (8) Guidance and facilitation support from Startup India Hub.
      Source
      The Hindu, PIB.




      Posted by Jawwad Kazi on 12th Jul 2019
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