New Delhi: Prime Minister Narendra Modi on Saturday announced an action plan to boost new ventures which are seen as key to employment generation and wealth creation.He offered a slew of incentives to boost start-up businesses. A tax holiday , inspector raj-free regime for three years and capital gains tax exemption are some features of the action plan. A Rs 10,000 crore corpus fund was formed for them.
Mr.Mody was addressing the first conference of start-up entrepreneurs.
He also announced a self-certification scheme in respect of nine labour and environment laws and said there will be no inspection during the first three years of launch of the venture.
Also, a liberalised patent regime is being brought to help start-up businesses register patents, for which the fee will be slashed by 80 per cent.
Modi said profits earned by start-ups will be exempt from payment of income tax during the first three years of business. To boost financing, a 20 per cent tax on venture capitalists also will go.
He further said an unencumbered easy exit option will be provided under the bankruptcy Act so that start-ups can exit within 90 days.
The government will also support the ventures by removing the criteria of experience and turnover for bagging government procurement contracts.
India, has the third-largest number of start-ups globally.
