INCENTIVES TO ENTREPRENEURS IN INDIA

Incentives to Entrepreneurs in India

The Indian government and various institutions provide several incentives to encourage entrepreneurship:

Financial Incentives:

Startup India Seed Fund Scheme (SISFS): Provides financial assistance to startups for proof of concept, prototype development, product trials, and commercialization.

Mudra Yojana: Offers loans to small businesses, particularly in the non-corporate and unorganized sectors, to encourage entrepreneurship at the grassroots level.

Tax Incentives:

Tax Holiday: Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) are eligible for a tax holiday for three consecutive years out of the first ten years since incorporation.

Capital Gains Exemption: Investments made in startups are exempt from capital gains tax, encouraging investment in early-stage companies.

Infrastructure Support:

Incubators and Accelerators: The government and private sector have established numerous incubators and accelerators that provide infrastructure, mentorship, and resources to startups.

Make in India: This initiative promotes manufacturing in India by providing infrastructure, financial support, and ease of doing business.

Regulatory Support:

Ease of Doing Business: The Indian government has implemented measures to simplify business registration, compliance, and taxation processes to make it easier for entrepreneurs to start and operate businesses.