Start-Up Schemes

Introduction
There are two Start-up schemes that can be availed by artisans/workers/ business entities
based in Uttar Pradesh. One is Start-up scheme of Government of India (GoI) which is open
for all industry types and other one is Start-up scheme of Government of Uttar Pradesh
(GoUP) which is open to IT/ITes and Electronics industry. Primary aim of both the schemes
is to build a strong ecosystem that is conducive for growth of start-up businesses.
Benefits/ Nature of Assistance
Start-ups based in Uttar Pradesh can claim the benefits under GoI as well as GoUP Start-up
schemes (IT/ITeS and Electronics companies only), simultaneously.
1. Under GoI Scheme
For availing various benefits under the Start-up India scheme, an entity would be required to
be recognized by Department of Industrial Policy and Promotion (DIPP) as a start-up by
applying at https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-
page.html.
a. Tax holiday for 3 Years: Start-ups are eligible for getting 100% tax rebate on
profit for a period of three years in a block of seven years provided that annual
turnover does not exceed Rs 25 crores in any financial year. In such case, they
should be registered DIPP and also get a certification from Inter-Ministerial Board
(IMB validates Start-ups for granting tax related benefits and is setup by DIPP.
For more info, visit:
https://www.startupindia.gov.in/content/sih/en/startupgov/imb.html)
b. Easy Exit: In case of exit, a Start-up can close its business within 90 days from
the date of application of winding-up
c. Self-certification for labour and environment compliances: Start-ups are permitted
to self-certify with nine labour and environmental laws. Additionally, in case of
labour laws, no inspection will be conducted for a period of three years.
o Labour compliances wherein self-certification is permitted: The Building
and Other Constructions Workers’ (Regulation of Employment &
Conditions of Service) Act, 1996; The Inter-State Migrant Workmen
(Regulation of Employment & Conditions of Service) Act, 1979; The
Payment of Gratuity Act, 1972; The Contract Labour (Regulation and
Abolition) Act, 1970; The Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952 and The Employees’ State Insurance Act, 1948;
o Environment compliances wherein self-certification is permitted: The
Water (Prevention & Control of Pollution) Act, 1974; The Water
(Prevention & Control of Pollution) Cess (Amendment) Act, 2003 and The
Air (Prevention & Control of Pollution) Act, 1981
d. Patents and Trademark Facilitation: GoI has empanelled facilitators of patents
and trademarks who shall provide high quality Intellectual Property Right
Services including fast examination of patents at lower fees. Kindly visit the link
for details –
 https://www.startupindia.gov.in/content/sih/en/search.html?roles=Accelerator&pa
ge=0
e. Startup Patent Application & IPR Protection: Fast track patent application with up
to 80% rebate in filling patents
f. Easier Public Procurement Norms: Exemption from requirement of earnest
money deposit, prior turnover and experience requirements in government
tenders
g. Single window clearances for registrations, approvals, and filing compliances
h. SIDBI Fund of Funds: Funds for investment into startups through Alternate
Investment Funds. Further, the Startup India portal – www.startupindia.gov.in – is
a one-stop platform for all stakeholders in the startup ecosystem to interact
amongst each other, exchange knowledge and form successful partnerships in a
highly dynamic environment. To know more about the benefits under Startup
India, visit https://www.startupindia.gov.in/content/dam/invest-
india/startup_kit.pdf.

2. Under GoUP Scheme

a. Interest Subsidy: An interest subsidy of 5% per annum on the rate of interest paid
on the loans obtained from Scheduled Banks/ Financial Institutions, for a period
of 7 years; subsidy shall be in the form of reimbursed and subject to a maximum
of INR 1 crore per annum, per unit
b. Stamp Duty: 100% exemption of stamp duty on purchase/lease of land/office
space/ buildings for IT/ITeS use with condition of commencing operations within 3
years
c. Exemption of Electricity Duty: 100% exemption on Electricity duty for new IT/ITeS
units for a period of 10 years post commencement of commercial operations
d. Incentives for Certifications: Reimbursement of the cost incurred by an IT/ITeS
companies operating in the State on successfully securing quality & IT related
certifications such as Capability Maturity Model (CMM) level 2 upwards, ISO
27001 for security, ISO 20000 for service management terminology, COPC,
eSCM certification; subject to maximum reimbursement of 3 certifications with
total limit of INR 25 lakhs per unit. The similar certifications related to this sector
shall be included in the list, from time to time
e. Promotional Incentives:
o GoUP shall promote organization of start-up challenges, Hackathons,
boot camps, workshops, business plan competitions, conclave,
conferences etc. to boost the start-up environment
o GoUP shall provide sponsorship assistance, subject to a maximum of Rs
50,000 per start-up for participation in such forums

Eligibility/ Who can apply?

a. Definition of Start-up:

o Start-up is a business entity working towards innovation, development or

improvement of products or processes or services. Additionally, business
entity having a scalable business model with a high potential of
employment generation or wealth creation, shall be treated as a Start-up
 o Start-up should be registered as Private limited company/ Partnership
firm/ limited liability partnership, in India
o The definition will be valid up to seven years from the date of its
incorporation/registration; however, in the case of startups in the
biotechnology sector, the period shall be up to ten years from the date of
its incorporation/registration;
o Start-up status of a business entity shall cease to exist post the financial
year wherein it attains turnover of over Rs 25 Crores; Start-up status once
lost, can’t be awarded to the same business entity again
o An entity formed by splitting up or reconstruction of a business already in
existence shall not be considered a ‘Start-up’
b. Start-up scheme of Government of India (GoI) which is open for all industry types
c. Start-up scheme of Government of Uttar Pradesh (GoUP) which is open to
IT/ITes and Electronics industry
Note:
A Startup which has a profile on the “Startup India” website is considered a registered
Startup on the portal. These Startups can apply for various acceleration,
incubator/mentorship programmes and other challenges on the website along with getting an
access to resources like Learning and Development Program, Government Schemes, State
Polices for Startups, and pro-bono services.
For DIPP-recognition, the Startups will have to apply
at https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html to
avail benefits like access to high quality Intellectual Property services and resources,
relaxation in public procurement norms, self-certification under labour and environment laws,
easy winding of company, access to SIDBI Fund of Funds, tax exemption for 3 consecutive
years, and tax exemption on investment above fair market value.
How and Where to Apply?
To register on Start Up India website:

· Simply click on 'Register' and fill in the details as required in the registration form. An OTP
will be sent to your registered email address, post submitting which your profile will get
created.
· Option to select profile type will appear. For 'Individuals', the profile goes live immediately,
whereas for 'Start-ups', the profile goes under moderation for 24-48 Hrs, post which you
will be able to avail all benefits on www.startupindia.gov.in
What is the application procedure?

Step 1: Log on Startup India Portal https://startupindia.gov.in/registration.php. Please

follow the page below
Step 2: Enter your Legal Entity Representative.
Step 3: Enter your Incorporation / Step 8: Enter the Details of Directors and
Registration No. Partners.
Step 4: Enter your Incorporation / Step 9: Upload the essential documents
Registration Date. and Self – Certification in the prescribed
manner.
Step 5: Enter the PAN Number (optional).
Step 10: File the Incorporation /
Step 6: Enter your address, Pin Code &
Registration certificate of the company.
State.
Step 7: Enter details of the Authorized

To register as a Start Up with DIPP:

Step 1: Incorporate your business in Limited Liability Partnership or a Private Limited
company or a Firm
Step 2: Register your business with the start-up India scheme (as illustrated previously)
Step 3: Documents required to be upload online (upload only .pdf format)
o Any patent filed and published in patent journals available online or
offline.
o Registration wit incubators which are established in prominent post-
graduation colleges in India.
o Support letter from one of the startups who is funded through central or
state Government authorities or any incubator which is duly recognized by
the government of India.
o Letter of funding which should not be less than 20% in equity by angel or
incubation fund
o Certificate of the incorporation of your business
Step 4: Self-certify all your documents (as discussed above in page 1, point 1.c) before filing
for the recognition
Step 5: Await approval from Inter Ministerial Board

To register as a Start Up in Uttar Pradesh:

Step 1: Log in to http://itpolicyup.gov.in/login/ ; create new username ID and password

Step 2: Log in to http://lucknowinfo.com/itpolicyform/Public/frmStartupEnrollmentForm.aspx
Step 3: Fill in the required details

Download Scheme Guidelines:

https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html (GoI)

http://www.uplc.in/docs/Final%20UP%20IT%20Start-
up%20Policy%202017_13%20Dec%20English.pdf (GoUP)

Whom to Contact

1. Start-up
Nodal Officer’s Name: Shri Praveen Kumar
Address: 10, Ashok Marg, Sadullah Nagar, Narhi, Hazratganj, Lucknow, Uttar
Pradesh 226001
Email: [email protected]
Phone No: +91-522-2286808/09

2. ODOP PMU
Ram Kumar GK
Address: Niryat Bhawan, Second Floor, 8 Cantt Road, Qaiserbagh, Lucknow -
226001, Uttar Pradesh, India
Email: [email protected]