Startup Odisha

Startup Odisha

Guides » Government Initiatives » Startup Odisha

Startup Odisha

Startup Odisha, which goes by the tagline of “A New Wave of Innovation”, is a Government of Odisha initiative that seeks to develop a world-class “Startup Hub” in the State by the year 2020. Notably, the measure provides incentives and exemptions that scale above the Startup Policy of the Central Government or for that matter any other existing policy of Odisha. This article looks at the initiative in detail.

Vision and Mission

The initiative has been framed with the vision of:

  • Making Odisha rank in the top three “Startup Hubs” in India by the year 2020 through strategic partnership, conducive ecosystem, investment and policy intervention.
  • Unleashing the potential of women entrepreneurship in Odisha by promoting at least 33% of the Startups with Founders/Co-Founders as women.

Its mission is to:

  • Build a holistic Startup ecosystem in Odisha to facilitate its emergence as one of India’s top three Startup destinations.
  • Implement a supportive regulatory framework and robust governance structure to facilitate a hassle-free and time-bound statutory clearances and monitoring.

Objectives

Startup Odisha has been introduced with the objectives of:

  • Developing a world-class “Startup Hub” in the State by the year 2020.
  • Encouraging incubators to align with the strengths and requirements of the State.
  • Rendering skill-based training to encourage youth to take up startups.
  • Encouraging all Odisha-based companies to include a CSR provision that pertains to skill and infrastructure development for startups.
  • Create a supportive environment and ecosystem that makes way for the creation of at least 1,000 startups in the next five years.
  • Create a robust institutional framework for effective implementation, monitoring and evaluation of the initiative.

Why Odisha?

  • The State, according to a report by Dun & Bradstreet, is one of India’s fastest growing economies which is poised to grow at a rate of 12% by the year 2020.
  • Quite remarkably, it is the pioneer of the Single Window Clearance System.
  • It is known as the educational hub of the East.
  • Its Capital, Bhubaneswar, is acclaimed by the World Bank as the third best Indian city to do business.
  • Acclaimed entrepreneurial ecosystem.
  • State-of-the-art Industrial clusters.

Startup Ecosystem Development

The Government of Odisha has laid out an enabling ecosystem to nurture the seeds of entrepreneurship and the instinctive ability to innovate. The ecosystem entails:

  • The creation of world-class physical infrastructure to support Startups.
  • The promotion of innovation through Academic Interventions.
  • Institutionalizing the entrepreneurship culture by imparting training for the requisite skills.

Scope of Assistance

Startups will be rendered assistance in terms of the following:

Monthly Allowance

Recognized and eligible startups will receive a monthly allowance of Rs. 20,000 in their registered bank account, which will be initially accorded for the first three months. Post this stage; the Startup venture must submit a utilization report depicting the utilization of the allowance during these months by enclosing/uploading the essential supporting documents and bills, based on which the payment would be released. The payment would be released within fifteen days of the expiry of such three-month period and will continue for up to a year.

Assistance for Product Development and Marketing/Publicity

Startups may avail assistance for these purposes by submitting a self-contained product development plan with justification. If the same is approved, part of the aid will be provided in advance, and the remaining will be rendered to the registered bank account of the startup upon utilization of the advance payment, for which the startup would be obligated to submit utilization certificates with bills. An assistance of Rs. 15 lakhs will be rendered for such purposes.

Need-Based Assistance

The manner of assistance here is the same as above, which includes the submission of a self-contained plan by the startups, the provision of support after approval, and the submission of utilization certificates.

Subsidized Incubation

Subsidized incubation space in Government incubators could be received by recognized startups under this initiative.

Assistance for Event Participation

Startups representing the State in national and international events will be accorded the facility to commute in economy class flight or three-tier AC compartment in trains, in addition to the provision of free stall space.

For Startups Headed by Certain Classes

Startup ventures founded/co-founded by women, transgender, and people associated with social categories such as SC/ST/SEBC/PH will be granted a monthly allowance of Rs. 22,000. To qualify for this special allowance, the category of people mentioned herewith should hold at least 50% of equity in the startup entity. These people are also granted a sum of Rs. 16 lakhs for product development and marketing/publicity assistance.

Governance Structure

The policy would be governed by a three-tier governance structure, which includes:

  • Startup council headed by Chief Secretary
  • Task Force headed by Principal Secretary
  • Startup Secretariat at Institute of Entrepreneurship Development, Odisha (IED)

Registration for Recognition

A startup entity may register for recognition (consideration as a startup) online by filling a Startup registration Form. The documents to be submitted include the incorporation certificate and the proof of innovation as per any of the following:

  • DIPP Startup India recognition certificate
  • Patent filled in the name of the company and published in the Journal by India Patent Office in areas affiliated with the nature of the business being promoted.
  • Sanction/Assurance Letter of funding/Grant by the Government of India or any of the state governments as a part of any specified scheme to encourage innovation.
  • Letter of funding, which constitutes to less than 20% of equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with the Securities and Exchange Board of India (SEBI) that endorses the innovative nature of the business.

Note – entities not in custody of any of the above-mentioned documents may furnish a one-page write-up/note that substantiates the innovative nature of the applicant entity.

Qualifying Conditions

An entity must fulfil the following criteria to be considered as a startup under Odisha Startup Policy:

  • Its date of incorporation/registration is five years or below.
  • Its annual turnover doesn’t exceed a sum of Rs. 25 crores for any of these financial years.
  • It’s on the pursuit of innovation/development, and deployment or commercialization of new products, processes or services driven by technology or intellectual property, making it scalable for commercial success.
  • It’s registered in Odisha or has employed at least 50% of its qualified workforce in Odisha.
  • It’s not an extension of an existing family business or formed by splitting up or reconstructing an existing family business.

Applicability for Foreigners

A foreign national may get registered under the Startup Odisha Program by forming a partnership under the LLP Act. Funding from a foreign partner must be on par with the FDI regulations. A foreign national, NRI and PIO may self-register through MCA or Registrar of Firms using the existing processes and further register itself on the Startup Odisha Portal to avail the required benefits.

Internal Processing

After the startup entity files an application in the respective form, the concerned Nodal Agency (if satisfied with the requirements) will certify the registration proposal online within two weeks, which will be forwarded to the Startup Secretariat. The Nodal Agency may schedule or call for a meeting with the startup entity within the first week of such application. The results of the review process will be published online and emailed to the concerned startup venture. If an application is rejected, the applicant may reapply for startup recognition/financial assistance after three months from the date of communication of such rejection.

Incubator Related Benefits

Incubators, in general, are entrusted to accelerate the growth and success of startups through the provision of various services. The following bodies are eligible for incubator related benefits under the initiative:

  • Universities which has been in existence for at least five years
  • Educational Institutions which has been in existence for at least five years
  • Incubators recognized by a State or Central Government
  • Industry Group such as corporates, PSU or industrial units existing for at least five years in the State of Odisha and has/building an Incubator to support and mentor startups in the State of Odisha.

Contact Info

For any further queries, the reader may contact:

Institute of Entrepreneurship Development & Startup Secretariat
Sector-A,zone-A ,Plot no-123
Mancheswar Industrial Estate
Bhubaneswar-751010
Odisha
Contact No: -(0674) 2585609 / 2587176 / 2587286
Fax :2587176
(On all Working Days between 10am to 5pm)


Income Tax eFiling

We have made the Income Tax eFiling, simple and easy. File your income tax return online with the dedicated Tax Experts support from IndiaFilings.


Authorised eReturn Intermediary

IndiaFilings.com (ERI ID: ERIA100945) is an Income Tax Department authorised eReturn Intermediary.



Leave a comment