DIPP to move cabinet note on guarantee fund for startups

Source: The Economic Times, Sept 07, 2017

NEW DELHI: Keen to ease the flow of loans to startups, the Department of Industrial Policy and Promotion (DIPP) will move a cabinet note on a credit guarantee fund for budding entrepreneurs.

The government will use the fund to stand guarantee for loans given to startups. The fund was announced by Prime Minister Narendra Modi as part of the Startup India action plan in January 2016.

Accessing capital is one of the primary challenges faced by startups. The fund managed by the DIPP has a corpus of Rs 2,000 crore and will enable greater financial support to startups. “We have finalised the details of how the fund has to be managed. A cabinet note will be moved soon,” a senior government official said. Only startups recognised and certified by the DIPP can access the credit guarantee fund. So far, the industry department has recognised 2,865 applicants and 60 of them have been approved for a tax holiday.

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Start-ups can now raise 100 per cent of funds from foreign VC investor

Source: Business Standard, Aug 28, 2017

New Delhi: The Commerce Ministry in its consolidated Foreign direct investment (FDI) policy document released on Monday has for the first time included start-ups, which can raise up to 100 per cent of funds from Foreign Venture Capital Investor (FVCI).

Start-ups can issue equity or equity linked instruments or debt instruments to FVCI against receipt of foreign remittance, said the document which incorporates all the changes made in FDI policy over the past year.

“In addition, startups can issue convertible notes to person resident outside India (subject to certain conditions),” it said.

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Approvals to start-ups for tax sops multiply as govt softens stand

Source: The Hindu Business Line, Aug 18, 2017

New Delhi: Faced with criticism over the slow pace of approvals to start-ups for tax sops, the government has speeded-up the process with as many as 55 ventures getting the go-ahead in the on-going fiscal so far as opposed to just 10 approved in the last financial year.

“Approvals will be even faster in the coming months as now the inter-ministerial board (IMB) is giving reasons to applicants for non-approval and is allowing start-ups to apply again by making changes in their original proposals,” a government official told BusinessLine. The Prime Minister’s ‘Start Up India’ campaign launched in January 2016 with the objective of boosting entrepreneurship and creating more jobs across the country has been losing some sheen because of the low levels of tax incentives on offer and the handful of start-ups that qualified for it.

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Prime Minister Modi and Prime Minister Costa launch unique Start-up portal

Source: IBEF.org, June 27, 2017

New Delhi: Prime Minister Modi and Prime Minister Costa today launched a unique startup Portal – the India-Portugal International StartUp Hub (IPISH) – in Lisbon.

This is a platform initiated by Startup India and supported by Commerce & Industry Ministry and Startup Portugal to create a mutually supportive entrepreneurial partnership.

IPISH hosts a range of tools and will provide information on the start-up hotspots of Bangalore, Delhi and Lisbon; and on associated subjects, such as policy, taxation, and visa options. It will develop a Go-To-Market Guide to support start-ups.

IPISH is expected to help in mutual capacity building, and enable connections between start-ups, investors, and incubators from relevant sectors. It is also expected to establish a network of honorary ambassadors based in India and Portugal to guide start-ups from both countries.

Background:

There are strong complementarities between India and Portugal in the start-up sector. Portugal has one of the highest rates of business creation in Europe and has emerged as one of the most vibrant European eco-systems for entrepreneurship. Lisbon is hosting the Web Summit – a key annual international technology conference – for 3 years from 2016 onwards. The last Web Summit had 700 participants from India, and the number is expected to go up further this year. The governments of both India and Portugal are focusing on promoting Start-ups.

Commerce & Industry Minister launches the Startup India Hub

Source: IBEF.com, June 20, 2017

New Delhi: The Commerce & Industry Minister Smt. Nirmala Sitharaman today launched theStartup India Virtual Hub, an online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other.

Speaking about the need to bring the entire ecosystem together on one platform, Smt. Nirmala Sitharaman mentioned that Startup India Virtual Hub is an effort to create a marketplace where all the stakeholders can interact, exchange knowledge, and enable each other to grow. It will streamline the lifecycle of existing and potential startups, helping them access the right resources at the right time. She also encouraged all entrepreneurs in India to utilize this portal and all enabling stakeholders to contribute to the platform as much as possible. The Minister also announced a new initiative, wherein a Startup exchange program amongst the SAARC nations would be organized.

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Good news for start-ups, faster insolvency resolution on anvil

Source: Financial Express, Apr 18, 2017

New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) is considering a proposal to expedite the resolution of smaller and less complicated cases, and those involving start-ups within 90 days.“We are putting out a draft on this issue in a day or two,” IBBI chairman MS Sahoo told FE. A final decision will be made in due course. The Insolvency and Bankruptcy Code, under which the IBBI was set up, provides for wrapping up the insolvency resolution process in 180 days from the date of the admission of an application for initiating the resolution process by the adjudicating authority. The IBBI came into force from December 1, 2016. Read the rest of this entry »

Start-ups to get more money as Cabinet gievs nod to Rs 1k cr fund

Source: Business Standard, Mar 23, 2017

New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved Rs 1,000-crore initial corpus for the Fund of Funds for Start-ups (FFS), which was established in June last year.According to the Cabinet decision, Alternate Investment Funds (AIFs) supported by FFS shall invest at least twice the amount of contribution received from FFS in start-ups.

It was also decided that operating expenses for carrying out due diligence, legal and technical appraisals and convening meeting of Venture Capital Investment Committee, among others, would be met out of the FFS to the extent of 0.50 per cent of the commitments made to AIFs.

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