Start-ups now need only a DIPP certificate for IPR benefits

To improve ease of doing business, Commerce and Industry Minister Nirmala Sitharaman today said a start-up would now need only a certificate of recognition from the government to avail IPR-related benefits.
Earlier, a budding entrepreneur had to go through an elaborate process of approaching an inter-ministerial board to procure the Intellectual Property Rights (IPR) benefits.
"A start-up would now require only a certificate of recognition from the Department of Industrial Policy and Promotion (DIPP) and would not be required to be examined by the inter-ministerial board, as was being done earlier. This is one rapid change that we have brought in," she said here at the 'Start-up India States' Conference'.

Under the 'Start-up India' action plan, the government has announced three-year tax holiday and other benefits to these entrepreneurs.
She also said that the ministry has lined up a series of meetings with different stakeholders, including investors to resolve start-up issues. She will also meet investors, industry and journalists soon.
Commenting on views of some critics about interference of government in implementing the action plan for start-ups, particularly on extending tax holiday, Sitharaman said the government is committed to facilitate young entrepreneurs.

"...Many questions are being raised about 'minimum government and maximum governance'. I want to ensure that the government is only facilitating you," she said.

However, she said, "As and when money has to be spent, it will have to be looked into. All of us are duty-bound to be accountable and transparent...Accountability and transparency warrants that if tax breaks have to be given, in cases when the government defers, postpones or foregoes, we have to have some kind of accountability system. Therefore, there has to be an inter-ministerial board".
The Minister also said that seven proposals for research parks, 16 for TBIs (Technology Business Incubators) and 13 proposals for Start-up Centres have been recommended by the National Expert Advisory Committee formed by the Human Resource Development Ministry.

To obtain tax and IPR related benefits, a start-up shall
be required to be certified as an eligible business from the inter-ministerial board of certification. The board consists of DIPP Joint Secretary, representative of Department of Science and Technology; and Department of Bio-technology.
Sitharaman asked all the stakeholders to regularly provide inputs to further improve the start-up ecosystem to give it an impetus.
India is ranked third in the world, behind the US and the UK in terms of number of start-ups. Close to 4,400 technology start-ups exist in India and the number is expected to reach 12,000-plus by 2020, driven by a young and diverse entrepreneurial ecosystem, she said.

On the rate of success of start-ups, she said: "World-over, the success rate is not very high. But that is the nature of the business. Rate of success is beyond the government. What the government, however, can do is to give a chance to every idea to reach some stage and give facilitation and tax breaks," she said.
She also said that the DIPP has written to top 50 companies requesting them to support the initiative under their CSR activities by setting up new incubators in collaboration with educational institutes.
Five states including Rajasthan, Kerala, Telangana, Karnataka gave detailed presentation about their initiatives to boost start-up ecosystem.

"Every state is working for start-ups and it's not like these five states only are working," Sitharaman said.
(REOPENS DCM26)
Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek urged all the states to set up incubators and start-up hubs to promote budding entrepreneurs.
The demand was made during the day-long function on start-ups here today.
Besides the states, start-ups, investors, incubators and various ministries and departments of government related to start-ups were part of separate panel discussions on various facets, like funding and incubation, of the 'Startup India' initiative and the startup ecosystem as a whole.

While the start-ups shared their growth stories and expectations from the government, the investors deliberated on access of funds in different stages of the startup life-cycle.
The ministry said that 13,500 applications for setting up of new tinkering labs in schools have been received by Niti Aayog while the target was only 500.
Similarly, for a target of setting up of 100 new incubators, 3,300 applications were received.
Earlier in the day, Commerce Minister Nirmala Sitharaman said the government needs to balance the reforms with accountability.
She stressed that startups need to only focus on their ideas and not worry about compliances under various acts.

The aim of the conference was to serve as a platform for all states to discuss the progress, policies and good practices they have made on the 'Startup India' initiative.
State governments of Telangana, Gujarat, Rajasthan, Kerala and Karnataka presented the initiatives undertaken by them to promote start-ups.