Startup India Seed Fund Scheme
The Government of India started the Startup India Seed Fund Scheme (SISFS) as part of the Startup India program. It is meant to help new, innovative businesses get off the ground by giving them money to help with things like proof of concept, prototype development, product trials, market entry, and commercialization. SISFS makes sure that promising business owners get the right help at the right time to grow their businesses.
What This Scheme Provides?
SISFS gives eligible startups up to ₹20 Lakhs in grants to help them prove their concept (PoC), build a prototype, or test their product. Additionally, startups can get up to ₹50 Lakhs as a loan to help them get into the market, make money, or grow their business. Incubators all over India carry out the plan by evaluating and helping startups that are part of it.
Benefits of Startup India Seed Fund Scheme
- Access to early-stage funding without diluting equity.
- Financial support for prototype development, trials, and go-to-market strategy.
- Strengthened credibility by being backed by Startup India.
- Mentorship and incubation support through government-approved incubators.
- Increased chances of attracting private investors and venture capital after initial growth.
Eligibility Criteria For Startup India Seed Fund Scheme
To qualify for the Startup India Seed Fund Scheme, a startup must:
- Be recognized by DPIIT (Department for Promotion of Industry and Internal Trade) under Startup India.
- Have been incorporated for not more than 10 years from the date of application.
- Have a business idea with market fit, scalability, and potential for employment generation.
- Not have received more than ₹10 Lakhs of financial assistance from any other Central or State Government scheme.
- The shareholding by Indian promoters should be at least 51% at the time of application.
Startup India Certificate (DPIIT Recognition)
The Department for Promotion of Industry and Internal Trade (DPIIT) gives out the Startup India Certificate to officially say that a business is a startup. This recognition shows that the startup has a new and interesting business idea. It also makes it eligible for a number of government-backed programs, funding opportunities, and support programs that are meant to help new businesses grow and expand.
80-IAC Income Tax Exemption
Section 80-IAC of the Income Tax Act gives recognized startups a 100% tax break on their profits for three years in a row. This exemption lowers the amount of taxes that new businesses have to pay, which lets them put the money they save back into their business to help it grow, develop new products, and reach new markets. This makes their business stronger in the beginning.
