The Government of Assam has launched the ‘Startup Assam’ initiative to promote sustainable economic growth and generate large scale employment opportunities in the state of Assam. Under Assam Startup Policy 2017, various incubation centres were set up by the state government to facilitate the growth of at least 1,000 new startups over the upcoming years. In this article, we look at the “Startup Assam” in detail.
Objectives of the Scheme
The Objectives of the ‘Start-up Assam’ are as follows:
- To provide the funding required to enable startups in Assam.
- To develop a mechanism of problem-solving and the culture of entrepreneurship in the state.
- To enable the citizens of the state to associate with the startups to have a higher quality of life.
- To establish a state-owned business incubator.
- To facilitate the growth of at least 1,000 new startups over the next 5 years.
Eligibility Criteria for Startup Registration
The given below eligibility criteria may register under Startup Assam policy:
- The company to be formed should be a limited liability partnership/ private limited company/ partnership firm.
- It should be a new firm or existing firm not older than 7 years, and the annual turnover of the company not exceeding Rs. 25 crores.
- The firm must work towards innovative schemes, development, deployment or commercialization of new products.
- The firm should not be an expansion or extension of an existing business.
Incentives for Startups
Digital Upgradation Subsidy
The State Government will provide 50% subsidy for the purchase of computers, related hardware and software if all the following conditions are satisfied:
- The startup with the legal bill as proof of purchase.
- The date of purchase should be after the notification of the policy circulated.
- The self-attested note needs to be enclosed specifying the use of purchased items and ensuring that the items purchased will not be resold for 1 year from date of purchase.
Lease Rental Reimbursement
The State Government will provide subsidy up to 50% subject to a maximum of 5 lakhs of the rental cost for the first three years if the following conditions are satisfied:
- The startup should employ at least 5 people on a full-time basis.
- The startup has rented a property for its official purpose. This may cover rent paid to incubators, co-working or shared spaces.
- The rent/lease agreement should be in the name of the startup or one of its directors.
- The startup is holding the proof of rent paid by way of receipts or bank statements.
The State Government will provide subsidy up to 50% subject to a maximum of 1 lakh for 5 years under the following conditions:
- The startup has received a proper electricity bill in the name of the startup or one of its directors.
- The electricity bills generated after the release of the Startup Assam policy will be considered. Any bill older than 12 months will not be considered for reimbursement.
- The Startup should have proof of payment against the electricity bill.
Note: The Startups operating out of co-working spaces/ shared spaces/ incubators will not be eligible for this benefit.
Patent Filing Cost reimbursement
The cost for filing a patent application will be reimbursed to the startup companies with the limit of Rs. 1 lakh per Indian patent awarded. For awarded foreign patents, maximum limit up to Rs. 5 lakhs can be reimbursed.
The startup benefits can be availed only if the startup has MASI recognition and if the following conditions are satisfied:
- The startup should have filed for a patent and should hold the Application Filing Report (AFR), Form 1, Form 5, Form 18 or other invoice receipts, if applicable.
- The startup should have a copy of the patent certificate issued to them.
Incentives for Women, Transgender and Differently abled
The one-time incentive of Rs.5000 for hiring women, transgender and differently abled will be given for 3 years under the following conditions:
- The employee must be a woman, a transgender or a differently abled individual.
- The employee may be a founder or director of the company.
- The employee must be employed for a minimum period of 12 months before the startup applies for the scheme.
One-Time Idea Grant
Any innovative idea developed into a new product or service, which generates revenue for the startups will be funded with the amount of Rs.5,00,000 per startup.
Marketing and promotion assistance
The cost for marketing and promotion, including travel incurred by the startup will be reimbursed to the startup companies with the limit of Rs. 5 lakh per startup.
Incentive for Entrepreneurs
Any entrepreneur who establishes Start-ups will be eligible for an allowance of Rs 20,000 per month per Start-Up for one year under the following conditions:
- The startups should have a validated prototype or working model.
- The entrepreneurs of the Start-Up entity should have an alternate source of income.
- It has to be at least one woman entrepreneur in the Start-Up entity.
My Assam Startup ID (MASI)
My Startup Assam ID (MASI) is a unique ID granted to “Startups” that apply for recognition in the Assam Startup Portal and are duly approved by the concerned authority. Startups with valid MASI become eligible to apply for benefits under the Assam Start-up Policy subject to other criteria laid out by the concerned authority.
Documents Required for MASI Recognition
The following set of documents has to be submitted while registering for Startup recognition:
- Certified copy of Incorporation
- Proof of innovation has to be enclosed as per any of the following:
- Certificate of DIPP Startup India recognition with a one-page write-up on Innovation.
- The patent filed in the entity name and the nature of business being promoted with one page write up on Innovation
- Assurance Letter of the grant provided by the Government of India to the entity to promote innovation with one page write up about innovation.
- Letter of grant issued by any Angel Fund/ Private Equity Fund/ Incubation Fund/ Accelerator/ Angel Network duly registered with (SEBI) Securities and Exchange Board of India.
Note: If an entity doesn’t own any of the above mentioned four documents, they may submit a one-page write-up/note explaining the innovative nature of the entity. The applicant is encouraged to share its business plan along with the letter on innovation.
To register for Startup Assam, visit the official website of Assam Startup. The eligible entities can register for a startup using the startup registration link. After registration, the application will be reviewed by the Officer from Department of Commerce and Industries (Nodal Department), the state startup certificate will be issued within 10 days of applying after all the submitted documents are verified.