Action Plans of Start up India and the status so far.

Compliance regime based on self certification

Startups still have to comply with the payment of gratuity, payment of
provident fund, contract labour regulations etc. The only difference is that
no labour inspector will come and conduct a suo moto(on its own motion).
Startup India Hub
The Startup India Hub resolved over 12,000 queries received from
startups in first 3 months of its operation.
Mobile app and portal
It allow startups to register in one-day.
Is it really possible to register given the norms and steps for registration?
Faster Exit:
Insolvency and Bankruptcy Code, which seeks to provide an easy exit
option for insolvent and sick companies.
The government has relied on the Insolvency and Bankruptcy Bill, 2015,
but we do not know when it is likely to receive Presidential assent.
Tax exemption from capital gains:
A start-up becomes eligible for tax benefits only if the three-member
board is convinced that the business "involves innovation, development,
deployment or commercialisation of new products, processes or services
driven by technology or intellectual property".
Income tax on profits:
The income tax waiver for three consecutive years can be availed only if
the entity's turnover is below Rs 25 crore in any year up to 2020-21. This
tax exemption would be available only to start-ups registered between
April 1, 2016 and March 31, 2019.
The exemption does not clarify whether this three-year exemption will
apply to startups once they have started earning profits or will apply to
them for a period of three years from their incorporation. If the latter, the
exemption is fairly redundant as most startups do not make any profit in
intital years.

So far, the DIPP(department of industrial policy and promotion) has

received 728 applications for tax benefits. It has registered and
recognised 180 start-ups. Of these, the inter-ministerial board has
appraised 33 start-ups for tax benefits. Only one has been approved so
far. Another has been approved only for IPR benefits. Ten have been
rejected, while the decision on others has been deferred.(july28, 2016)

Fund of Funds: .
10,000 crore fund over 10 years
"subject to progress of the scheme and availability of funds
This fund will not invest directly in start-ups. Instead, it will invest in
existing venture capital funds (alternate investment funds registered with
the Securities and Exchange Board of India), which in turn will invest in
start-ups.
Credit Guarantee Fund for startups:
Micro Small Enterprise (MSEs) is simply a guaranteed loan by the
government micro and small enterprises do not have to have collateral in
order to borrow funds for business whether it be for a start up or
expansion of operating business.
Setting up of 35 new incubators:
An incubator shall be required to meet the following 4 criteria in order to
be awarded a certificate of recognition from Government of India. The key
parameters along with the benchmark set for selection are as follows:
Number of years of establishment
Number of incubatees currently enrolled & graduated?
Availability of Infrastructure
Contact period of engagement

To conclude, the action plan was largely optimistic since it shows a very
positive intent by the government. However, going forward, it is critical
that the government sets up a team of founders, investors, angels,
lawyers and accountants who can ensure that the final policies
surrounding startups are as flawless as possible and maintain the right
balance between accountability, transparency and doing business.