Govt to Set Up a New Not-for-Profit Company to Consolidate All Startup India Entities

Commerce and Business Minister Piyush Goyal introduced that the Indian authorities will set up a not-for-profit firm underneath Part 8 of the Corporations Act to consolidate all initiatives and our bodies of Startup India underneath one roof.

This transfer goals to additional strengthen the startup ecosystem by fostering innovation and making a self-sufficient construction for the sector.

Launched on January 16, 2016, the Startup India initiative encompasses quite a lot of applications and schemes designed to help and nurture startups in India. Below this, a number of programmes have been rolled out to help entrepreneurs, construct a strong startup ecosystem and rework India into a rustic of job creators as a substitute of job seekers.

The brand new firm will likely be industry-led, much like Make investments India, and can handle its affairs independently. It can additionally contain the Nationwide Startup Advisory Council and doubtlessly SIDBI. This initiative is predicted to help entrepreneurs and rework India into a rustic of job creators.

The Small Industries Improvement Financial institution of India (SIDBI) is predicted to play a major position within the new not-for-profit firm being arrange by the Indian authorities to consolidate all Startup India initiatives.

Part 8 of the Corporations Act, 2013, pertains to the formation of not-for-profit organizations in India. These firms are established with the target of selling fields akin to commerce, artwork, science, sports activities, training, analysis, social welfare, faith, charity, and environmental safety.

The Non-profit firms are shaped to advertise charitable functions somewhat than to earn earnings. Earnings, if any, are reinvested within the firm’s aims and never distributed as dividends to members. Such firms get pleasure from sure exemptions and advantages underneath the Corporations Act, akin to diminished compliance necessities.

At current, Startup India is housed in Make investments India, which is a nationwide physique to advertise investments.

“We’ll help it as a catalyst in order that policy-wise, it’s heading in the right direction. It can have an impartial board and organisation construction and we’d do some oversight. The Nationwide Startup Advisory Council may also be part of it,” Goyal stated.