Uttarakhand Startup Policy
Uttarakhand Startup Policy
The Indian Government initiated Startup India with the aim of providing a conducive environment for startups in the country. In line with the same objective, the Government of Uttarakhand has created the Uttarakhand Startup Policy to attract investments in terms of startups and to nurture the youth who pass out of various technology institutes of the State to become future entrepreneurs. Uttarakhand is known to be an educational hub with institutes such as IIT Roorkee, NIT, IIM Kashipur, GBPUAT and so on. On the other hand, the State Government has established industrial estates like Pantnagar, Haridwar, Kashipur, Kotdwar, Selaqui, Sitarganj, Dehradun and many more. This Policy aims to offer a platform for students who emerge from these institutes and provide them with maximum support. In this article, we look at the various aspects of the Uttarakhand Startup policy in detail.
Startups
The following are the various essential information related to Startups in the State of Uttarakhand.
Registering a Startup
The registration for a startup in Uttarakhand may be done online by easily filling a standard form online and uploading the relevant Company Incorporation or Registration Certificate.
Benefits to recognised Startups
The following are the benefits that recognised startups could avail:
Monthly Allowance
A monthly allowance of INR 20,000 for one year would be provided to the startups selected by the Startup Council. However, any of the following conditions must be fulfilled by the startup.
- The startup has received total equity financing by a SEBI registered AIF Category 1 & 2 funds or Ange Networks in the range of INR 5 Lakhs to INR 100 Lakhs;
- A Sanction Letter of grant or funding to the entity by the Government of India or from any other State Government;
- The startup has obtained a revenue run rate of any digit between INR 50,000 to INR 10 Lakhs per month over the last 3 months.
As per the policy, if the startup operates a business in any of the focus sectors or ST/ SC/ Women/ Physically challenged startup entrepreneurs or belongs to the Category-A district of Uttarakhand, the monthly allowance would be increased to INR 30,000.
Product Development and Marketing Assistance
Product Development and Marketing Assistance one-time fund with a limit of INR 5 Lakhs may be offered to a recognised startup entity for the introduction of the innovated product in the market if either of the following conditions is fulfilled.
- The startup has received total equity financing by a SEBI registered AIF Category 1 & 2 funds or Angel Networks for a minimum of INR 10 Lakhs;
- A Sanction Letter of grant or funding to the entity by the Government of India or from any other State Government for a minimum of INR 2 Lakhs;
- The startup has obtained a minimum revenue run rate of any digit of INR 2.5 Lakhs over the last 3 months.
As per the policy, if the startup operates a business in any of the focus sectors or ST/ SC/ Women/ Physically challenged startup entrepreneurs or belongs to the Category-A district of Uttarakhand, the product development and marketing assistance allowance would be increased to INR 7.5 Lakhs.
Need-Based Assistance
The Need-Based Assistance with a maximum budget of INR 5 Lakhs may be offered to startups on a case-to-case basis. This fund would be directed towards the cost of components or raw materials and other related equipment that is essential for the innovation process for the new product development or existing product improvement. However, this assistance would be provided in cases where the innovation depends on the specific raw material or equipment and is subject to approval by the Startup Council.
Fund Release Guidelines
Monthly Allowances
- The payment would be made for one year.
- Monthly payment for the initial 6 months would be made directly to the eligible startup’s registered bank account every month.
- From the sixth month, the startup is required to submit a utilisation report to the Nodal Agency. This report should highlight the use of the monthly allowance in the last 6 months along with documents and bills that support the statement.
- The payment would be released according to the utilisation report which has to be submitted by the startup to the Nodal Agency online, in 15 days before the completion of the first six months.
- Startups would only be able to avail of this benefit once.
Marketing Assistance
- Startups are required to sub a pro-forma marketing plan online.
- The one-time payment would be made to the eligible startup’s registered bank account directly in advance if approved.
- Half of the payment would be made in advance, and the remaining half would be reimbursed.
- The startup must submit bills for all the expenses for marketing for the year after receiving the grant.
- Startups are eligible to avail this benefit again, after proper review.
Need Based Assistance
- Startups are required to sub a pro-forma marketing plan online.
- The one-time payment would be made to the eligible startup’s registered bank account directly in advance if approved.
- The startup must submit bills for all the expenses for 6 months after receiving the grant.
- Startups are eligible to avail this benefit again, after proper review.
Reimbrsements
Stamp Duty
All recognised startups would be entitled to 50% reimbursement of the stamp duty on the lease deed or the purchase of space. As per the policy, if the startup operates a business in any of the focus sectors or ST/ SC/ Women/ Physically challenged startup entrepreneurs or belongs to the Category-A district of Uttarakhand, they are entitled to a complete reimbursement of the stamp duty.
All recognised startups which require Stamp Duty reimbursed must submit relevant bills to the Nodal Agency, where the documents would be reviewed and sent to the Task Force for further approval.
SGST
Recognised startups which are in the process of deploying their products and services in Uttarakhand, would be entitled to a complete reimbursement of the SGST paid to the State with a limit of INR 5 Lakhs. This reimbursement would be given once only for state GST paid in sales of goods for 3 years with a maximum of INR 5 Lakhs per startup per annum if the following conditions are met.
- The startup must be incorporated in Uttarakhand.
- The startup must have an annual turnover of less than INR 1 Crore per annum.
- Proof of taxes paid by the startup and issued by the competent authority must be submitted.
Startups recognised by the Task Force as per the MSME Policy 2015 may apply for reimbursement.
Incubators
The following are the various essential information related to Incubators in the State of Uttarakhand.
Registration of Incubator
The registration for Incubators may be completed online by easily filling a standard form online and uploading the Company Incorporation or Registration Certificate.
Capital Grant
A one-time Capital Grant of 50% of the capital cost with a maximum of INR 1 Crore may be offered to an approved incubator in order to set up or scale up incubation facility. This grant excludes the cost of the building and the land.
Running Expense
Incubators that are recognised by the Startup Council would be given INR 2 Lakhs per annum as part of the operating and management expenses for 3 years.
Eligibility
- One-Time Capital Grant
- Aspiring or existing incubator established in an Educational Institute or University would be eligible for a one-time capital grant of a maximum budget of INR 1 Crore.
- Aspiring or existing incubator must have a dedicated area of 5,000 Sq. Ft. to the incubator.
- Running Expense
- As per the definition of Incubator in the Startup Uttarakhand Policy, an applying body must be an existing incubator.
Fund Release Guideline
- One-Time Capital Grant
- The grant would be disbursed in a phased manner according to the budget plan that was submitted by the applicant as well as approved by the Task Force.
- The grant would be disbursed proportionately to the funds brought in by the party, as per the budget plans and subsequently approved by the Task Force.
- Running Expense
- A one-time payment would be made directly to an eligible incubator’s registered bank account.
