Government Schemes Every startup should know about (Part 1)

• Udyog Aadhar Memorandum: The Udyog Aadhaar Memorandum (UAM) is a single-page registration that replaces the earlier 11-form process for MSMEs' self-certification. This could be used to prove the establishment's existence and the identity of the owner or promoter.‍

• IPO: The process of issuing shares of a private firm to the public in a fresh stock issuance is known as an Initial Public Offering (IPO). An IPO allows a firm to raise funds from public investors.‍

• NBFCs: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act of 1956 that deals in loans and advances, as well as the acquisition of shares, stocks, bonds, debentures, and other marketable securities issued by the government or local authority.‍

• Campaigns: Campaigns are well-planned efforts to promote a certain company aim, such as promoting awareness of a new product or gathering feedback from customers.‍

• Incubators: A collaborative program aimed at assisting fledgling businesses in their growth. Incubators provide workspace, seed cash, coaching, and training to help entrepreneurs handle some of the issues that come with establishing a firm.

The Marketing Assistance Scheme aims to provide marketing support to the MSMEs through National Small Industries Corporation (NSIC) to improve the marketability of the products. It also enhances the competitiveness of the MSMEs in the Indian market, encouraging more and more small-scale businesses to grow. 

Eligibility :

• MSMEs with Udyog Aadhar Memorandum (UAM) are eligible for benefits under the scheme.
• Institutions, Industry associations, and organisations involved in the MSME sector may also get support through this scheme.

Application procedure :

The applications/proposals seeking to avail of the benefits of this scheme can be submitted to the Branch Manager of the nearest NSIC office with full details and supporting documents. The proposals are then examined by a Screening Committee and shortlisted to be part of the scheme.

Benefits :

• Assistance in organising and participation in these exhibitions abroad with net budgetary support of Rs. 30 lakh per event ( Rs. 40 lakh for Latin American Countries).
• Assistance in organising domestic exhibitions/trade fairs with budgetary support of maximum Rs. 45 lakh, while for participating in these exhibitions, the amount is capped to Rs. 15 Lakh. 
• Financial assistance in co-sponsoring exhibitions as well. The budget, however, is limited to 40% of the net expenditure.
• Other monetary support in airfares, space rents, and advertisements based on size and type of enterprise.
• Marketing promotion events and intensive campaigns.‍

For the holistic development of the field of Information and Communications Technology (ICT), the National Small Industries Corporation- IT Incubator (NSIC IT Incubator) scheme encourages the spirit of entrepreneurship by turning innovative ideas into viable commercial ventures.

Eligibility :

• Must be a first-generation entrepreneur.
• Must be an MSME.
• Must be willing to pay the monthly license fee and other payable charges.

Application procedure :

One can go forward with the registration process either online or offline:

Online:

• Visit the official website of NSIC.
• Click on the “Apply Now,” and a registration page will open.
• Fill in all the required details along with all the documents needed. 
• After filling out the form, click on the “Submit” button.

Offline:

1. Download the NSIC form
2. Fill in all the details and attach the required documents.
3. Submit it to the nearest office of NSIC.

Selection process :

The applicant has to undergo a thorough scrutinisation process before getting selected to be a part of this scheme. The initial process involves 

1. Applying with a viable business plan, which further gets checked by a selection committee and selected for presentation on merit. 
2. The applicant is then called for a presentation of their business plan, and based on skills and experience, the committee takes the final decision. 
3. After selection, the applicant has to sign an agreement with NSIC to work in the Incubator and avail of the benefits. The incubation period is a maximum of 12 months which may or may not be extended to 6 months with a gap of 3 months each if the enterprise is deserving.

Benefits :

• The scheme provides built-in space (infrastructure), access to business centres, software libraries, and internet facilities. 
• Initial level counselling and skill training.
• Mentoring and legal services along with market exposure.
• Access to Seed/Venture capital and various funding sources based on the viability of the business plan and the process.
• Documentation support and various statutory formalities are required for starting an enterprise.

To improve the credit delivery system and make credit more accessible to small and medium-sized businesses, Credit Guarantee Scheme (CGS) was launched. It further accelerates the access to finance for the underprivileged, making the availability of finance from conventional lenders to new generation entrepreneurs. A credit guarantee is provided to banks and financial institutions by CGTMSE(Trust) under this scheme so that they can in turn lend collateral-free credit to MSEs. There are namely four types of Credit Guarantee schemes:

1. Credit Guarantee Scheme for banks: Borrowers avail of the scheme through banks.
2. Credit Guarantee Scheme for NBFCs: Borrowers avail of the scheme through eligible NBFCs.
3. Sub-debt scheme: Credit guarantee coverage for distressed MSMEs.
4. PM Svanidhi: Credit facilities for the street vendors.

Eligibility :

• New and existing Micro and Small Enterprises engaged in manufacturing, service, or retail activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions, etc.
• All service sector enterprises under the MSMED Act are eligible for coverage.
• The applicant must be a “First-generation” entrepreneur.

Application procedure :

• Go to https://www.cgtmse.in/Home.
• The homepage will open.
• Click on the “Register” option seen on the homepage.
• Enter your details and click on “Get OTP.”
• After typing in the OTP, the registration will be completed.
• “Login” into the page again. You will have to fill in the required information like GST details, Bank Account details, and ITR.
• Click on “Submit” to avail the benefits under this scheme.
• You can further download the financial report, calculate the guarantee, etc.

Benefits :

• This scheme strengthens the credit delivery system to the MSMEs through Banks and NBFCs.
• The larger flow of credit without any collateral or third-party guarantees. 
• The extent of guarantee cover is 50% up to a credit of Rs 10 lakh to 200 lakh per MSE borrower in the retail trade activity.
• Micro and small businesses operated or owned by women, as well as all credit or loans in the northeast region for credit facilities up to Rs 50 lakh, are covered by an 80 percent guarantee.
• For up to 5 lakh loans of micro-enterprises, the guarantee cover stands at 85%.
• A new hybrid product has also been launched wherein the collateral security can be collected for a portion of the credit facility. At the same time, the remaining part is covered under the CGS scheme.

The guarantee will commence from the e-date of payment of the guarantee fee. It will run for the agreed term credit tenure in the event of term loans / composite loans, and for a period of 5 years in the case of working capital facilities only granted to borrowers or for such period as the Guarantee Trust may specify in this regard.

• Capital Gains Tax: The tax paid on the profit received through the sale of a capital asset.

• Line of Credit: A Line Of Credit (LOC) is a revolving credit line with a predetermined borrowing limit.

• VC: Venture capital (VC) is a type of equity financing that allows entrepreneurs and other small businesses to raise funds before they start operating or making revenue or profits.

• ICTE: The Information Communication Technology & Electronics (ICTE)

• Business Plan: A business plan is a written document that explains how a company, typically a startup, defines its goals and plans to attain them.

• MSME Development Act 2006: The Micro, Small, and Medium Enterprises Development Act of 2006 is a law passed by the Indian Parliament. "Any buyer who fails to make payment to MSMEs within stipulated terms or a maximum of 45 days," according to the act, "would be liable to pay monthly compounded interest at three times the bank rate published by RBI."

• STP Unit: The Software Technology Park (STP) programme is a 100 percent export-oriented scheme for developing and exporting computer software via data communication networks or physical media, as well as professional services.

• PCT Route: The Patent Cooperation Treaty (PCT) is a 1970 international treaty on patent law. It establishes a standardised method for filing patent applications.

• Interest Subsidy: The amount of a person's or a company's profits that are taxed as interest payments on its debt over the course of a year.

• IPR: Intellectual property rights (IPR)  are the rights given to persons over the creations of their minds for a certain period of time.

• ITR: The Income Tax Return (ITR) is a document that must be submitted to the Income Tax Department of India. It comprises information on a person's earnings and the taxes that must be paid on those earnings throughout the year.

• Corpus: The sum invested in a particular scheme by all investors is referred to as the corpus.

Venture capital or equity financing primarily emerged to give the necessary financial support for start-ups in different fields. Since this financing is not solely based on funding, the start-ups can access the expertise of professionals who, in turn, play an essential role in the management of the company. Small Industries Development Bank of India (SIDBI) has come up with Venture Capital funds that extensively deal with MSMEs and co-finances in various sectors. 

Some of the venture capital funds managed by SIDBI are

• Ubharte SItaare Fund: To invest in ventures from manufacturing and service industries in domestic markets looking to enter foreign markets or mid-size enterprises trying to scale up their operations. 
• SME Growth Fund (SGF): In association with other commercial banks, this close-ended eight-year fund is dedicated to the SME sector with a corpus of RS. 500 Crore. (In divestment stage)
• National Venture Fund for Software and Information Technology (NFSIT): In association with the Ministry of Information Technology, SIDBI has designated this close-ended 10-year fund with a corpus of 1 Billion for the IT sector. (In the Divestment stage)
• Samridhi Fund: For the betterment of states like Bihar, Odisha, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand, Rajasthan, and West Bengal, this fund provides capital to various social enterprises which can deliver both financial and social returns. 

Eligibility :

• MSME companies engaged in growth sectors like retailing, food processing, manufacturing, IT, life sciences, healthcare, infrastructure, logistics, and distribution.
• Should have high growth potential
• Should have the ability to scale up within 3-5 years of investment
• Should be unlisted at the time of investment
• Should have plans to expand operations as well as for profitable returns in the form of IPO, mergers, or acquisitions

Application procedure :

The interested entrepreneur or firm can send their proposal with a detailed business plan entailing all the background details, an executive summary of the management team, an intricate shareholding pattern, as well as company performance, and more. The proposal must be sent to the respective email addresses of the types of Venture capital funds of SIDBI they are interested in. The processing cycle widely ranges from 8 to 12 weeks, including documentation and due diligence. 

Criteria for investment :

• Long-term competitive advantage
• Strong management team
• Potential for average profitability
• Profitable exit plans
• Unlisted companies( Preferably SMEs)
• Subscription to equity/ equity-type instruments

Benefits :

• Provides long-term equity finance that holds a solid capital base for growth and development.
• The support scale is between INR 5 to INR 25 Crore in the form of equity and convertible instruments payable after seven years.
• Networking and management support 
• Assist investee companies in attracting investments from other venture capitalists

SIP-EIT is a programme that offers financial assistance to MSMEs and Technology Startups in order to file international patents. It also encourages innovation and recognizes the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.

Eligibility :

• The applicant must be registered under the Government of India's MSME Development Act of 2006.
• The applicant must be a company registered under the Companies Act of the Government of India and must meet the investment restrictions in plant and machinery or equipment set forth in the Government of India's MSME Development Act 2006.
• The application must be a technology incubation enterprise or a startup that is registered as a company and is located in an incubation center/park (in this case, a certification from the incubation center/park is required).
• The applicant must be an STP Unit that has been approved.
• The invention must be in the field of electronics or information and communication technologies.

Application procedure :

• Go to http://www.ict-ipr.in/sipeit/login.
• Create a User account by logging in after filling in all the details.
• Once “Login” is created, one can apply online for the scheme by submitting the required documents.

Selection OR Acceptance of Startups :

The acceptance of startups under this scheme depends on the following criteria:

• For a particular invention, there can be one application for foreign filling.
• An Indian patent attorney firm having experience of at least five years in handling international patent applications often handles and processes patent applications. 
• Only five applications per financial year will be considered for reimbursement from a single applicant.
• The applicant should have already filed a patent application with the complete specification for the said invention with the Indian Patent Office.
• International patent filing options include the PCT route, the Paris Convention route, or filing directly in a foreign country of the innovator's choice.

Benefits :

• This scheme provides financial support for the International filing of patents at different stages, including expenses in filing and processing.
• It also helps in entering the global market. 
• The maximum amount reimbursed per innovation shall be Rs 15 lakhs or 50% of the total expenditures paid in filing and processing a patent application up to grant, whichever is less.
• Under the scheme, the Ministry of Electronics and Information Technology aims to provide financial support to Education Institutes, Meity societies, etc., for organizing seminars & workshops on IPR awareness.

The PMMY scheme launched in 2015 aims to provide MUDRA Loans to small and micro enterprises through various commercial banks, RRBs, SFBs, NBFCs, and Cooperative Banks. The loan range may vary depending on growth, development, and funding needs. The MUDRA loan can be categorized into

1. Sishu- Upto Rs. 50,000
2. Kishore- Rs. 50,000 to 5 Lakh
3. Tarum- Rs. 5 Lakh to 10 Lakh

Eligibility :

• Must have their business plans for service sector activities or trading or manufacturing activities.
• In the case of an individual applicant, the age range must be between 18 and 65 years. 
• Must be a non-corporate and non-farm small and micro-enterprise. 

Application procedure :

If you are eligible, applying for a MUDRA loan is relatively easy and can be done both online & offline. 

Online : 

• Visit the official website of the PMMY-authorized financial institution from which you wish to avail of the Mudra loan.
• Download the relevant form depending on the type of loan (Sishu, Kishore, and Tarun).
• Fill in all the personal and business details and then “Submit” the form. 
• The application form, once received, is verified and processed accordingly. Following the verification, the loan amount is approved and disbursed.
• One can withdraw the amount with the help of a MUDRA card assigned to them.

Offline :

• Visit a PMMY-authorized bank or NBFC of your choice.
• Fill in the MUDRA loan application form with the required details.
• Submit the application form with a self-written business plan and other documents to substantiate those details.
• After successful document verification, the loan will get approved, and the desired amount will be credited.
• The loan amount can be withdrawn with the help of a MUDRA card issued after the loan approval.

Benefits :

• MUDRA loans can be taken for small amounts at affordable interest rates; also, the credit guarantee is borne by the Government.
• This scheme could be availed without any collateral or security.
• The Mudra loan scheme in collaboration with the “Make In India” campaign, helps in fostering innovation, facilitating investment, and improving skill development.
• Women Borrowers can avail this scheme with discounted interest rates.
• Relief of up to 1500 Crore will be provided to the Borrowers as Interest Subsidy under the Mudra Shishu Category.

• DPIIT: DPIIT (Department for Promotion of Industry and Internal Trade) reports to the Ministry of Commerce and Industry under Central Government. It is in charge of developing and implementing promotional and developmental initiatives to help the industrial sector grow.

• Shareholding: The shares in a company that a particular person or organization owns are considered together as a unit.

• Companies Act 2013: The Companies Act of 2013 is an Act of the Indian Parliament on Indian company law that governs the formation of a company, its obligations, its directors, and its dissolution.

• ICDR: Issue of Capital and Disclosure Requirements

• SEBI: The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodities markets in India under the ownership of the Indian Finance Ministry.

• Seed Support: A very early investment meant to support the business until it can generate cash of its own (see cash flow) or until it is ready for further investments.

• Debentures: A debenture is a financial instrument with a period of more than ten years that is not secured by any security.

• EAC: An Experts Advisory Committee is responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.

SAMRIDH or Startup Accelerators of MeitY for Product Innovation, Development, and Growth, launched by the Ministry of Electronics and IT, aims to provide funding and acceleration to startups, predominantly software startups. The investment is extensively for brilliant solutions and proof of concepts through selected accelerators. The selected accelerators are responsible for providing a customized acceleration programme for selected 300 startups.

‍

Eligibility :

For Startups: 

• Must be recognised by DPIIT.
• Must be in the Early-growth stage.
• The product of the startup must be software-based.

For Accelerators:

• Must have operations in India.
• Must have been in the business of incubation for more than three years and supported more than 50 startups.
• Must have the required infrastructure and targeted acceleration programmes.

Application procedure for Startups :

The application procedure primarily comprises the following steps:

• Visit https://meitystartuphub.in.
• On the homepage, click on “Register” under the Startup section. 
• The registration page will appear. Fill in all the requisite details and click on the “Submit” button. 
• Following registration, one can “login” into the page for further access by filling in the Username and Password. 

Benefits :

• This scheme provides a platform for product development and business scaling in terms of investment. 
• To provide customer connect, investor connects, and international connect services.
• Financial support of up to Rs 40 lakh to the startups according to their current valuation and growth stage through accelerators.
• Customized acceleration programs for startups and provided product and capacity enhancement services.

Post selection process :

The ​​MeitY SAMRIDH Scheme will be implemented through the MeitY Startup Hub (MSH). The selected Accelerator will be responsible for developing personalized acceleration programmes, and the budget for each startup is Rs. 2 lakh. The services include- Co-learning, networking, expert diagnosis, and negotiation of investment funding from Angel Investors.  A maximum of 10 businesses and a minimum of 5 startups working in the sphere of software products can be helped by a shortlisted accelerator.

The Women Entrepreneurship Platform (WEP) is a NITI Aayog initiative that seeks to bring together women from various parts of the country through a unified access portal to help them realize their entrepreneurial aspirations. It is built on three foundation pillars: Iccha Shakti, Karma Shakti, and Gyaan Shakti.

Eligibility :

Any woman entrepreneur with an established or new startup or just a business idea can benefit from this scheme.

Application procedure for Startups :

1. Visit https://wep.gov.in/.
2. Click on the “Register” button on the homepage. Following this, a registration form will appear on the screen.
3. Fill in all the details and click on the “Register” button at the bottom of the page. 
4. After completing registration, a page will appear asking for “Areas of interest” and relevant fields.
5. Fill in all the Personal Information, Business Information, and Educational information. Keep in mind that the fields might vary with the area of interest you are choosing. 
6. Successful submission of details leads you to become a member of the WEP and grants you access to several benefits.

Benefits :

WEP actively hosts a wide range of events as a platform, providing resources and promoting entrepreneurial communities.

• It provides monetary assistance, including seed capital, growth capital, line of credit( LOC), and non-credit support.
• Promotion of offline initiatives and outreach programs by partnering with other organizations.
• Incubation and acceleration support to startups founded or co-founded by women entrepreneurs registered with the program.
• Identification of skill gaps and providing online/offline training on these aspects.
• Marketing and networking support to early-stage or established entities
• Compliance services to registered users, which provides them with the essential tools to adhere to legal compliances, perform registrations, furnish accounts, make loan applications, provide license counseling, and so on.
• A like-minded community to understand the true spirit of entrepreneurship and the way forward.

To provide better support, WEP has tied up with some fortune companies like CRISIL, Facebook, SIDBI,  NASSCOM, DICE, FICCI, Mann Foundations, Shopclues, CII, and many others. The fortunes will play a key role in developing different skill sets important for a robust entrepreneurial ecosystem.

• Udyog Aadhar Memorandum: The Udyog Aadhaar Memorandum (UAM) is a single-page registration that replaces the earlier 11-form process for MSMEs' self-certification. This could be used to prove the establishment's existence and the identity of the owner or promoter.‍

• IPO: The process of issuing shares of a private firm to the public in a fresh stock issuance is known as an Initial Public Offering (IPO). An IPO allows a firm to raise funds from public investors.‍

• NBFCs: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act of 1956 that deals in loans and advances, as well as the acquisition of shares, stocks, bonds, debentures, and other marketable securities issued by the government or local authority.‍

• Campaigns: Campaigns are well-planned efforts to promote a certain company aim, such as promoting awareness of a new product or gathering feedback from customers.‍

• Incubators: A collaborative program aimed at assisting fledgling businesses in their growth. Incubators provide workspace, seed cash, coaching, and training to help entrepreneurs handle some of the issues that come with establishing a firm.

The Marketing Assistance Scheme aims to provide marketing support to the MSMEs through National Small Industries Corporation (NSIC) to improve the marketability of the products. It also enhances the competitiveness of the MSMEs in the Indian market, encouraging more and more small-scale businesses to grow. 

Eligibility :

• MSMEs with Udyog Aadhar Memorandum (UAM) are eligible for benefits under the scheme.
• Institutions, Industry associations, and organisations involved in the MSME sector may also get support through this scheme.

Application procedure :

The applications/proposals seeking to avail of the benefits of this scheme can be submitted to the Branch Manager of the nearest NSIC office with full details and supporting documents. The proposals are then examined by a Screening Committee and shortlisted to be part of the scheme.

Benefits :

• Assistance in organising and participation in these exhibitions abroad with net budgetary support of Rs. 30 lakh per event ( Rs. 40 lakh for Latin American Countries).
• Assistance in organising domestic exhibitions/trade fairs with budgetary support of maximum Rs. 45 lakh, while for participating in these exhibitions, the amount is capped to Rs. 15 Lakh. 
• Financial assistance in co-sponsoring exhibitions as well. The budget, however, is limited to 40% of the net expenditure.
• Other monetary support in airfares, space rents, and advertisements based on size and type of enterprise.
• Marketing promotion events and intensive campaigns.‍

For the holistic development of the field of Information and Communications Technology (ICT), the National Small Industries Corporation- IT Incubator (NSIC IT Incubator) scheme encourages the spirit of entrepreneurship by turning innovative ideas into viable commercial ventures.

Eligibility :

• Must be a first-generation entrepreneur.
• Must be an MSME.
• Must be willing to pay the monthly license fee and other payable charges.

Application procedure :

One can go forward with the registration process either online or offline:

Online:

• Visit the official website of NSIC.
• Click on the “Apply Now,” and a registration page will open.
• Fill in all the required details along with all the documents needed. 
• After filling out the form, click on the “Submit” button.

Offline:

1. Download the NSIC form
2. Fill in all the details and attach the required documents.
3. Submit it to the nearest office of NSIC.

Selection process :

The applicant has to undergo a thorough scrutinisation process before getting selected to be a part of this scheme. The initial process involves 

1. Applying with a viable business plan, which further gets checked by a selection committee and selected for presentation on merit. 
2. The applicant is then called for a presentation of their business plan, and based on skills and experience, the committee takes the final decision. 
3. After selection, the applicant has to sign an agreement with NSIC to work in the Incubator and avail of the benefits. The incubation period is a maximum of 12 months which may or may not be extended to 6 months with a gap of 3 months each if the enterprise is deserving.

Benefits :

• The scheme provides built-in space (infrastructure), access to business centres, software libraries, and internet facilities. 
• Initial level counselling and skill training.
• Mentoring and legal services along with market exposure.
• Access to Seed/Venture capital and various funding sources based on the viability of the business plan and the process.
• Documentation support and various statutory formalities are required for starting an enterprise.

To improve the credit delivery system and make credit more accessible to small and medium-sized businesses, Credit Guarantee Scheme (CGS) was launched. It further accelerates the access to finance for the underprivileged, making the availability of finance from conventional lenders to new generation entrepreneurs. A credit guarantee is provided to banks and financial institutions by CGTMSE(Trust) under this scheme so that they can in turn lend collateral-free credit to MSEs. There are namely four types of Credit Guarantee schemes:

1. Credit Guarantee Scheme for banks: Borrowers avail of the scheme through banks.
2. Credit Guarantee Scheme for NBFCs: Borrowers avail of the scheme through eligible NBFCs.
3. Sub-debt scheme: Credit guarantee coverage for distressed MSMEs.
4. PM Svanidhi: Credit facilities for the street vendors.

Eligibility :

• New and existing Micro and Small Enterprises engaged in manufacturing, service, or retail activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions, etc.
• All service sector enterprises under the MSMED Act are eligible for coverage.
• The applicant must be a “First-generation” entrepreneur.

Application procedure :

• Go to https://www.cgtmse.in/Home.
• The homepage will open.
• Click on the “Register” option seen on the homepage.
• Enter your details and click on “Get OTP.”
• After typing in the OTP, the registration will be completed.
• “Login” into the page again. You will have to fill in the required information like GST details, Bank Account details, and ITR.
• Click on “Submit” to avail the benefits under this scheme.
• You can further download the financial report, calculate the guarantee, etc.

Benefits :

• This scheme strengthens the credit delivery system to the MSMEs through Banks and NBFCs.
• The larger flow of credit without any collateral or third-party guarantees. 
• The extent of guarantee cover is 50% up to a credit of Rs 10 lakh to 200 lakh per MSE borrower in the retail trade activity.
• Micro and small businesses operated or owned by women, as well as all credit or loans in the northeast region for credit facilities up to Rs 50 lakh, are covered by an 80 percent guarantee.
• For up to 5 lakh loans of micro-enterprises, the guarantee cover stands at 85%.
• A new hybrid product has also been launched wherein the collateral security can be collected for a portion of the credit facility. At the same time, the remaining part is covered under the CGS scheme.

The guarantee will commence from the e-date of payment of the guarantee fee. It will run for the agreed term credit tenure in the event of term loans / composite loans, and for a period of 5 years in the case of working capital facilities only granted to borrowers or for such period as the Guarantee Trust may specify in this regard.

• Capital Gains Tax: The tax paid on the profit received through the sale of a capital asset.

• Line of Credit: A Line Of Credit (LOC) is a revolving credit line with a predetermined borrowing limit.

• VC: Venture capital (VC) is a type of equity financing that allows entrepreneurs and other small businesses to raise funds before they start operating or making revenue or profits.

• ICTE: The Information Communication Technology & Electronics (ICTE)

• Business Plan: A business plan is a written document that explains how a company, typically a startup, defines its goals and plans to attain them.

• MSME Development Act 2006: The Micro, Small, and Medium Enterprises Development Act of 2006 is a law passed by the Indian Parliament. "Any buyer who fails to make payment to MSMEs within stipulated terms or a maximum of 45 days," according to the act, "would be liable to pay monthly compounded interest at three times the bank rate published by RBI."

• STP Unit: The Software Technology Park (STP) programme is a 100 percent export-oriented scheme for developing and exporting computer software via data communication networks or physical media, as well as professional services.

• PCT Route: The Patent Cooperation Treaty (PCT) is a 1970 international treaty on patent law. It establishes a standardised method for filing patent applications.

• Interest Subsidy: The amount of a person's or a company's profits that are taxed as interest payments on its debt over the course of a year.

• IPR: Intellectual property rights (IPR)  are the rights given to persons over the creations of their minds for a certain period of time.

• ITR: The Income Tax Return (ITR) is a document that must be submitted to the Income Tax Department of India. It comprises information on a person's earnings and the taxes that must be paid on those earnings throughout the year.

• Corpus: The sum invested in a particular scheme by all investors is referred to as the corpus.

Venture capital or equity financing primarily emerged to give the necessary financial support for start-ups in different fields. Since this financing is not solely based on funding, the start-ups can access the expertise of professionals who, in turn, play an essential role in the management of the company. Small Industries Development Bank of India (SIDBI) has come up with Venture Capital funds that extensively deal with MSMEs and co-finances in various sectors. 

Some of the venture capital funds managed by SIDBI are

• Ubharte SItaare Fund: To invest in ventures from manufacturing and service industries in domestic markets looking to enter foreign markets or mid-size enterprises trying to scale up their operations. 
• SME Growth Fund (SGF): In association with other commercial banks, this close-ended eight-year fund is dedicated to the SME sector with a corpus of RS. 500 Crore. (In divestment stage)
• National Venture Fund for Software and Information Technology (NFSIT): In association with the Ministry of Information Technology, SIDBI has designated this close-ended 10-year fund with a corpus of 1 Billion for the IT sector. (In the Divestment stage)
• Samridhi Fund: For the betterment of states like Bihar, Odisha, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand, Rajasthan, and West Bengal, this fund provides capital to various social enterprises which can deliver both financial and social returns. 

Eligibility :

• MSME companies engaged in growth sectors like retailing, food processing, manufacturing, IT, life sciences, healthcare, infrastructure, logistics, and distribution.
• Should have high growth potential
• Should have the ability to scale up within 3-5 years of investment
• Should be unlisted at the time of investment
• Should have plans to expand operations as well as for profitable returns in the form of IPO, mergers, or acquisitions

Application procedure :

The interested entrepreneur or firm can send their proposal with a detailed business plan entailing all the background details, an executive summary of the management team, an intricate shareholding pattern, as well as company performance, and more. The proposal must be sent to the respective email addresses of the types of Venture capital funds of SIDBI they are interested in. The processing cycle widely ranges from 8 to 12 weeks, including documentation and due diligence. 

Criteria for investment :

• Long-term competitive advantage
• Strong management team
• Potential for average profitability
• Profitable exit plans
• Unlisted companies( Preferably SMEs)
• Subscription to equity/ equity-type instruments

Benefits :

• Provides long-term equity finance that holds a solid capital base for growth and development.
• The support scale is between INR 5 to INR 25 Crore in the form of equity and convertible instruments payable after seven years.
• Networking and management support 
• Assist investee companies in attracting investments from other venture capitalists

SIP-EIT is a programme that offers financial assistance to MSMEs and Technology Startups in order to file international patents. It also encourages innovation and recognizes the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.

Eligibility :

• The applicant must be registered under the Government of India's MSME Development Act of 2006.
• The applicant must be a company registered under the Companies Act of the Government of India and must meet the investment restrictions in plant and machinery or equipment set forth in the Government of India's MSME Development Act 2006.
• The application must be a technology incubation enterprise or a startup that is registered as a company and is located in an incubation center/park (in this case, a certification from the incubation center/park is required).
• The applicant must be an STP Unit that has been approved.
• The invention must be in the field of electronics or information and communication technologies.

Application procedure :

• Go to http://www.ict-ipr.in/sipeit/login.
• Create a User account by logging in after filling in all the details.
• Once “Login” is created, one can apply online for the scheme by submitting the required documents.

Selection OR Acceptance of Startups :

The acceptance of startups under this scheme depends on the following criteria:

• For a particular invention, there can be one application for foreign filling.
• An Indian patent attorney firm having experience of at least five years in handling international patent applications often handles and processes patent applications. 
• Only five applications per financial year will be considered for reimbursement from a single applicant.
• The applicant should have already filed a patent application with the complete specification for the said invention with the Indian Patent Office.
• International patent filing options include the PCT route, the Paris Convention route, or filing directly in a foreign country of the innovator's choice.

Benefits :

• This scheme provides financial support for the International filing of patents at different stages, including expenses in filing and processing.
• It also helps in entering the global market. 
• The maximum amount reimbursed per innovation shall be Rs 15 lakhs or 50% of the total expenditures paid in filing and processing a patent application up to grant, whichever is less.
• Under the scheme, the Ministry of Electronics and Information Technology aims to provide financial support to Education Institutes, Meity societies, etc., for organizing seminars & workshops on IPR awareness.

The PMMY scheme launched in 2015 aims to provide MUDRA Loans to small and micro enterprises through various commercial banks, RRBs, SFBs, NBFCs, and Cooperative Banks. The loan range may vary depending on growth, development, and funding needs. The MUDRA loan can be categorized into

1. Sishu- Upto Rs. 50,000
2. Kishore- Rs. 50,000 to 5 Lakh
3. Tarum- Rs. 5 Lakh to 10 Lakh

Eligibility :

• Must have their business plans for service sector activities or trading or manufacturing activities.
• In the case of an individual applicant, the age range must be between 18 and 65 years. 
• Must be a non-corporate and non-farm small and micro-enterprise. 

Application procedure :

If you are eligible, applying for a MUDRA loan is relatively easy and can be done both online & offline. 

Online : 

• Visit the official website of the PMMY-authorized financial institution from which you wish to avail of the Mudra loan.
• Download the relevant form depending on the type of loan (Sishu, Kishore, and Tarun).
• Fill in all the personal and business details and then “Submit” the form. 
• The application form, once received, is verified and processed accordingly. Following the verification, the loan amount is approved and disbursed.
• One can withdraw the amount with the help of a MUDRA card assigned to them.

Offline :

• Visit a PMMY-authorized bank or NBFC of your choice.
• Fill in the MUDRA loan application form with the required details.
• Submit the application form with a self-written business plan and other documents to substantiate those details.
• After successful document verification, the loan will get approved, and the desired amount will be credited.
• The loan amount can be withdrawn with the help of a MUDRA card issued after the loan approval.

Benefits :

• MUDRA loans can be taken for small amounts at affordable interest rates; also, the credit guarantee is borne by the Government.
• This scheme could be availed without any collateral or security.
• The Mudra loan scheme in collaboration with the “Make In India” campaign, helps in fostering innovation, facilitating investment, and improving skill development.
• Women Borrowers can avail this scheme with discounted interest rates.
• Relief of up to 1500 Crore will be provided to the Borrowers as Interest Subsidy under the Mudra Shishu Category.

• DPIIT: DPIIT (Department for Promotion of Industry and Internal Trade) reports to the Ministry of Commerce and Industry under Central Government. It is in charge of developing and implementing promotional and developmental initiatives to help the industrial sector grow.

• Shareholding: The shares in a company that a particular person or organization owns are considered together as a unit.

• Companies Act 2013: The Companies Act of 2013 is an Act of the Indian Parliament on Indian company law that governs the formation of a company, its obligations, its directors, and its dissolution.

• ICDR: Issue of Capital and Disclosure Requirements

• SEBI: The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodities markets in India under the ownership of the Indian Finance Ministry.

• Seed Support: A very early investment meant to support the business until it can generate cash of its own (see cash flow) or until it is ready for further investments.

• Debentures: A debenture is a financial instrument with a period of more than ten years that is not secured by any security.

• EAC: An Experts Advisory Committee is responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.

SAMRIDH or Startup Accelerators of MeitY for Product Innovation, Development, and Growth, launched by the Ministry of Electronics and IT, aims to provide funding and acceleration to startups, predominantly software startups. The investment is extensively for brilliant solutions and proof of concepts through selected accelerators. The selected accelerators are responsible for providing a customized acceleration programme for selected 300 startups.

‍

Eligibility :

For Startups: 

• Must be recognised by DPIIT.
• Must be in the Early-growth stage.
• The product of the startup must be software-based.

For Accelerators:

• Must have operations in India.
• Must have been in the business of incubation for more than three years and supported more than 50 startups.
• Must have the required infrastructure and targeted acceleration programmes.

Application procedure for Startups :

The application procedure primarily comprises the following steps:

• Visit https://meitystartuphub.in.
• On the homepage, click on “Register” under the Startup section. 
• The registration page will appear. Fill in all the requisite details and click on the “Submit” button. 
• Following registration, one can “login” into the page for further access by filling in the Username and Password. 

Benefits :

• This scheme provides a platform for product development and business scaling in terms of investment. 
• To provide customer connect, investor connects, and international connect services.
• Financial support of up to Rs 40 lakh to the startups according to their current valuation and growth stage through accelerators.
• Customized acceleration programs for startups and provided product and capacity enhancement services.

Post selection process :

The ​​MeitY SAMRIDH Scheme will be implemented through the MeitY Startup Hub (MSH). The selected Accelerator will be responsible for developing personalized acceleration programmes, and the budget for each startup is Rs. 2 lakh. The services include- Co-learning, networking, expert diagnosis, and negotiation of investment funding from Angel Investors.  A maximum of 10 businesses and a minimum of 5 startups working in the sphere of software products can be helped by a shortlisted accelerator.

As a part of the programme, the Startup India Seed Fund Scheme was introduced in 2021 to facilitate the process of creating a robust startup ecosystem and providing financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.

Eligibility :

• Should be recognised by DPIIT.
• Startups should not have received more than Rs 10 lakh of monetary support under other significant government schemes.
• The Startup shall have been in existence for no more than two years at the time of application.
• Should be using Technology as its core product or service, creating innovative solutions in different sectors.
• Must have a business idea to develop the product with a scope of scaling
• According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the company at the time of application to the incubator for the programme.
• The seed support is generally available in grants and debt/convertible debentures.

Application procedure for Startups :

The application procedure for availing the seed fund from the incubators by the startups under the StartUp India Seed Fund Scheme is as follows:

• Go to https://seedfund.startupindia.gov.in/.
• On the top right side of the homepage, click the 'Login' button, then the 'Create an Account' option at the bottom of the "login" tab.
• The ‘Startup India’ registration page will open.
• After filling out the form, click the 'Register' button.
• An OTP will be sent. Enter the OTP and click the ‘Submit’ button.
• Go to the website again and click on the ‘Apply Now’ button on the right-hand side of the homepage. 
• Click on the ‘Apply Now’ button under the ‘For Startups’ option and further log in using the username and password registered.
• The application form will open. Put in all the details, upload the documents and click on the ‘Submit’ button.
• The application will be submitted for the selection of the startup.

Selection of Startups for the Scheme :

The Eligible Incubator will select startups for this scheme based on the following criteria:

• Idea
• Feasibility
• Novelty
• Fund Utilization Plan
• Business Plan
• Presentation
• Potential Impact

Benefits :

• Under this scheme, Financial assistance up to Rs 50 lakh will be provided to startups at an early stage through incubators.
• The incubator will disburse the seed fund to an eligible startup: 

       - As a grant for validation of “prototype development, proof of concept or product trials”-  Up to Rs. 20 Lakh

        - Investment for commercialisation, market-entry, or scaling up through debt-linked instruments - Up to Rs. 50 Lakh‍

• Once incubated, physical infrastructure, testing support, mentoring for prototype or commercialization, human resources, and legal compliances are provided to the startups, all by the incubators.‍
• For eligible startups, there are income tax and capital gains tax exemptions.

Post funding process :

Each incubator must track specific criteria for each beneficiary startup. Every beneficiary startup must present the reports to its incubators periodically. The data is submitted to Startup India in real-time via their web dashboards and further to the EAC quarterly. Each Startup’s return on investment is also reported by the designated incubator.

• Proof of concept
• Prototype development
• Progress of product development & field trials
• Turnover of startup
• Progress of market launch
• Quantum of loan, angel, or VC funding raised
• Jobs created by startup

• Udyog Aadhar Memorandum: The Udyog Aadhaar Memorandum (UAM) is a single-page registration that replaces the earlier 11-form process for MSMEs' self-certification. This could be used to prove the establishment's existence and the identity of the owner or promoter.‍

• IPO: The process of issuing shares of a private firm to the public in a fresh stock issuance is known as an Initial Public Offering (IPO). An IPO allows a firm to raise funds from public investors.‍

• NBFCs: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act of 1956 that deals in loans and advances, as well as the acquisition of shares, stocks, bonds, debentures, and other marketable securities issued by the government or local authority.‍

• Campaigns: Campaigns are well-planned efforts to promote a certain company aim, such as promoting awareness of a new product or gathering feedback from customers.‍

• Incubators: A collaborative program aimed at assisting fledgling businesses in their growth. Incubators provide workspace, seed cash, coaching, and training to help entrepreneurs handle some of the issues that come with establishing a firm.

The Marketing Assistance Scheme aims to provide marketing support to the MSMEs through National Small Industries Corporation (NSIC) to improve the marketability of the products. It also enhances the competitiveness of the MSMEs in the Indian market, encouraging more and more small-scale businesses to grow. 

Eligibility :

• MSMEs with Udyog Aadhar Memorandum (UAM) are eligible for benefits under the scheme.
• Institutions, Industry associations, and organisations involved in the MSME sector may also get support through this scheme.

Application procedure :

The applications/proposals seeking to avail of the benefits of this scheme can be submitted to the Branch Manager of the nearest NSIC office with full details and supporting documents. The proposals are then examined by a Screening Committee and shortlisted to be part of the scheme.

Benefits :

• Assistance in organising and participation in these exhibitions abroad with net budgetary support of Rs. 30 lakh per event ( Rs. 40 lakh for Latin American Countries).
• Assistance in organising domestic exhibitions/trade fairs with budgetary support of maximum Rs. 45 lakh, while for participating in these exhibitions, the amount is capped to Rs. 15 Lakh. 
• Financial assistance in co-sponsoring exhibitions as well. The budget, however, is limited to 40% of the net expenditure.
• Other monetary support in airfares, space rents, and advertisements based on size and type of enterprise.
• Marketing promotion events and intensive campaigns.‍

For the holistic development of the field of Information and Communications Technology (ICT), the National Small Industries Corporation- IT Incubator (NSIC IT Incubator) scheme encourages the spirit of entrepreneurship by turning innovative ideas into viable commercial ventures.

Eligibility :

• Must be a first-generation entrepreneur.
• Must be an MSME.
• Must be willing to pay the monthly license fee and other payable charges.

Application procedure :

One can go forward with the registration process either online or offline:

Online:

• Visit the official website of NSIC.
• Click on the “Apply Now,” and a registration page will open.
• Fill in all the required details along with all the documents needed. 
• After filling out the form, click on the “Submit” button.

Offline:

1. Download the NSIC form
2. Fill in all the details and attach the required documents.
3. Submit it to the nearest office of NSIC.

Selection process :

The applicant has to undergo a thorough scrutinisation process before getting selected to be a part of this scheme. The initial process involves 

1. Applying with a viable business plan, which further gets checked by a selection committee and selected for presentation on merit. 
2. The applicant is then called for a presentation of their business plan, and based on skills and experience, the committee takes the final decision. 
3. After selection, the applicant has to sign an agreement with NSIC to work in the Incubator and avail of the benefits. The incubation period is a maximum of 12 months which may or may not be extended to 6 months with a gap of 3 months each if the enterprise is deserving.

Benefits :

• The scheme provides built-in space (infrastructure), access to business centres, software libraries, and internet facilities. 
• Initial level counselling and skill training.
• Mentoring and legal services along with market exposure.
• Access to Seed/Venture capital and various funding sources based on the viability of the business plan and the process.
• Documentation support and various statutory formalities are required for starting an enterprise.

To improve the credit delivery system and make credit more accessible to small and medium-sized businesses, Credit Guarantee Scheme (CGS) was launched. It further accelerates the access to finance for the underprivileged, making the availability of finance from conventional lenders to new generation entrepreneurs. A credit guarantee is provided to banks and financial institutions by CGTMSE(Trust) under this scheme so that they can in turn lend collateral-free credit to MSEs. There are namely four types of Credit Guarantee schemes:

1. Credit Guarantee Scheme for banks: Borrowers avail of the scheme through banks.
2. Credit Guarantee Scheme for NBFCs: Borrowers avail of the scheme through eligible NBFCs.
3. Sub-debt scheme: Credit guarantee coverage for distressed MSMEs.
4. PM Svanidhi: Credit facilities for the street vendors.

Eligibility :

• New and existing Micro and Small Enterprises engaged in manufacturing, service, or retail activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions, etc.
• All service sector enterprises under the MSMED Act are eligible for coverage.
• The applicant must be a “First-generation” entrepreneur.

Application procedure :

• Go to https://www.cgtmse.in/Home.
• The homepage will open.
• Click on the “Register” option seen on the homepage.
• Enter your details and click on “Get OTP.”
• After typing in the OTP, the registration will be completed.
• “Login” into the page again. You will have to fill in the required information like GST details, Bank Account details, and ITR.
• Click on “Submit” to avail the benefits under this scheme.
• You can further download the financial report, calculate the guarantee, etc.

Benefits :

• This scheme strengthens the credit delivery system to the MSMEs through Banks and NBFCs.
• The larger flow of credit without any collateral or third-party guarantees. 
• The extent of guarantee cover is 50% up to a credit of Rs 10 lakh to 200 lakh per MSE borrower in the retail trade activity.
• Micro and small businesses operated or owned by women, as well as all credit or loans in the northeast region for credit facilities up to Rs 50 lakh, are covered by an 80 percent guarantee.
• For up to 5 lakh loans of micro-enterprises, the guarantee cover stands at 85%.
• A new hybrid product has also been launched wherein the collateral security can be collected for a portion of the credit facility. At the same time, the remaining part is covered under the CGS scheme.

The guarantee will commence from the e-date of payment of the guarantee fee. It will run for the agreed term credit tenure in the event of term loans / composite loans, and for a period of 5 years in the case of working capital facilities only granted to borrowers or for such period as the Guarantee Trust may specify in this regard.

• Capital Gains Tax: The tax paid on the profit received through the sale of a capital asset.

• Line of Credit: A Line Of Credit (LOC) is a revolving credit line with a predetermined borrowing limit.

• VC: Venture capital (VC) is a type of equity financing that allows entrepreneurs and other small businesses to raise funds before they start operating or making revenue or profits.

• ICTE: The Information Communication Technology & Electronics (ICTE)

• Business Plan: A business plan is a written document that explains how a company, typically a startup, defines its goals and plans to attain them.

• MSME Development Act 2006: The Micro, Small, and Medium Enterprises Development Act of 2006 is a law passed by the Indian Parliament. "Any buyer who fails to make payment to MSMEs within stipulated terms or a maximum of 45 days," according to the act, "would be liable to pay monthly compounded interest at three times the bank rate published by RBI."

• STP Unit: The Software Technology Park (STP) programme is a 100 percent export-oriented scheme for developing and exporting computer software via data communication networks or physical media, as well as professional services.

• PCT Route: The Patent Cooperation Treaty (PCT) is a 1970 international treaty on patent law. It establishes a standardised method for filing patent applications.

• Interest Subsidy: The amount of a person's or a company's profits that are taxed as interest payments on its debt over the course of a year.

• IPR: Intellectual property rights (IPR)  are the rights given to persons over the creations of their minds for a certain period of time.

• ITR: The Income Tax Return (ITR) is a document that must be submitted to the Income Tax Department of India. It comprises information on a person's earnings and the taxes that must be paid on those earnings throughout the year.

• Corpus: The sum invested in a particular scheme by all investors is referred to as the corpus.

Venture capital or equity financing primarily emerged to give the necessary financial support for start-ups in different fields. Since this financing is not solely based on funding, the start-ups can access the expertise of professionals who, in turn, play an essential role in the management of the company. Small Industries Development Bank of India (SIDBI) has come up with Venture Capital funds that extensively deal with MSMEs and co-finances in various sectors. 

Some of the venture capital funds managed by SIDBI are

• Ubharte SItaare Fund: To invest in ventures from manufacturing and service industries in domestic markets looking to enter foreign markets or mid-size enterprises trying to scale up their operations. 
• SME Growth Fund (SGF): In association with other commercial banks, this close-ended eight-year fund is dedicated to the SME sector with a corpus of RS. 500 Crore. (In divestment stage)
• National Venture Fund for Software and Information Technology (NFSIT): In association with the Ministry of Information Technology, SIDBI has designated this close-ended 10-year fund with a corpus of 1 Billion for the IT sector. (In the Divestment stage)
• Samridhi Fund: For the betterment of states like Bihar, Odisha, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand, Rajasthan, and West Bengal, this fund provides capital to various social enterprises which can deliver both financial and social returns. 

Eligibility :

• MSME companies engaged in growth sectors like retailing, food processing, manufacturing, IT, life sciences, healthcare, infrastructure, logistics, and distribution.
• Should have high growth potential
• Should have the ability to scale up within 3-5 years of investment
• Should be unlisted at the time of investment
• Should have plans to expand operations as well as for profitable returns in the form of IPO, mergers, or acquisitions

Application procedure :

The interested entrepreneur or firm can send their proposal with a detailed business plan entailing all the background details, an executive summary of the management team, an intricate shareholding pattern, as well as company performance, and more. The proposal must be sent to the respective email addresses of the types of Venture capital funds of SIDBI they are interested in. The processing cycle widely ranges from 8 to 12 weeks, including documentation and due diligence. 

Criteria for investment :

• Long-term competitive advantage
• Strong management team
• Potential for average profitability
• Profitable exit plans
• Unlisted companies( Preferably SMEs)
• Subscription to equity/ equity-type instruments

Benefits :

• Provides long-term equity finance that holds a solid capital base for growth and development.
• The support scale is between INR 5 to INR 25 Crore in the form of equity and convertible instruments payable after seven years.
• Networking and management support 
• Assist investee companies in attracting investments from other venture capitalists

SIP-EIT is a programme that offers financial assistance to MSMEs and Technology Startups in order to file international patents. It also encourages innovation and recognizes the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.

Eligibility :

• The applicant must be registered under the Government of India's MSME Development Act of 2006.
• The applicant must be a company registered under the Companies Act of the Government of India and must meet the investment restrictions in plant and machinery or equipment set forth in the Government of India's MSME Development Act 2006.
• The application must be a technology incubation enterprise or a startup that is registered as a company and is located in an incubation center/park (in this case, a certification from the incubation center/park is required).
• The applicant must be an STP Unit that has been approved.
• The invention must be in the field of electronics or information and communication technologies.

Application procedure :

• Go to http://www.ict-ipr.in/sipeit/login.
• Create a User account by logging in after filling in all the details.
• Once “Login” is created, one can apply online for the scheme by submitting the required documents.

Selection OR Acceptance of Startups :

The acceptance of startups under this scheme depends on the following criteria:

• For a particular invention, there can be one application for foreign filling.
• An Indian patent attorney firm having experience of at least five years in handling international patent applications often handles and processes patent applications. 
• Only five applications per financial year will be considered for reimbursement from a single applicant.
• The applicant should have already filed a patent application with the complete specification for the said invention with the Indian Patent Office.
• International patent filing options include the PCT route, the Paris Convention route, or filing directly in a foreign country of the innovator's choice.

Benefits :

• This scheme provides financial support for the International filing of patents at different stages, including expenses in filing and processing.
• It also helps in entering the global market. 
• The maximum amount reimbursed per innovation shall be Rs 15 lakhs or 50% of the total expenditures paid in filing and processing a patent application up to grant, whichever is less.
• Under the scheme, the Ministry of Electronics and Information Technology aims to provide financial support to Education Institutes, Meity societies, etc., for organizing seminars & workshops on IPR awareness.

The PMMY scheme launched in 2015 aims to provide MUDRA Loans to small and micro enterprises through various commercial banks, RRBs, SFBs, NBFCs, and Cooperative Banks. The loan range may vary depending on growth, development, and funding needs. The MUDRA loan can be categorized into

1. Sishu- Upto Rs. 50,000
2. Kishore- Rs. 50,000 to 5 Lakh
3. Tarum- Rs. 5 Lakh to 10 Lakh

Eligibility :

• Must have their business plans for service sector activities or trading or manufacturing activities.
• In the case of an individual applicant, the age range must be between 18 and 65 years. 
• Must be a non-corporate and non-farm small and micro-enterprise. 

Application procedure :

If you are eligible, applying for a MUDRA loan is relatively easy and can be done both online & offline. 

Online : 

• Visit the official website of the PMMY-authorized financial institution from which you wish to avail of the Mudra loan.
• Download the relevant form depending on the type of loan (Sishu, Kishore, and Tarun).
• Fill in all the personal and business details and then “Submit” the form. 
• The application form, once received, is verified and processed accordingly. Following the verification, the loan amount is approved and disbursed.
• One can withdraw the amount with the help of a MUDRA card assigned to them.

Offline :

• Visit a PMMY-authorized bank or NBFC of your choice.
• Fill in the MUDRA loan application form with the required details.
• Submit the application form with a self-written business plan and other documents to substantiate those details.
• After successful document verification, the loan will get approved, and the desired amount will be credited.
• The loan amount can be withdrawn with the help of a MUDRA card issued after the loan approval.

Benefits :

• MUDRA loans can be taken for small amounts at affordable interest rates; also, the credit guarantee is borne by the Government.
• This scheme could be availed without any collateral or security.
• The Mudra loan scheme in collaboration with the “Make In India” campaign, helps in fostering innovation, facilitating investment, and improving skill development.
• Women Borrowers can avail this scheme with discounted interest rates.
• Relief of up to 1500 Crore will be provided to the Borrowers as Interest Subsidy under the Mudra Shishu Category.

• DPIIT: DPIIT (Department for Promotion of Industry and Internal Trade) reports to the Ministry of Commerce and Industry under Central Government. It is in charge of developing and implementing promotional and developmental initiatives to help the industrial sector grow.

• Shareholding: The shares in a company that a particular person or organization owns are considered together as a unit.

• Companies Act 2013: The Companies Act of 2013 is an Act of the Indian Parliament on Indian company law that governs the formation of a company, its obligations, its directors, and its dissolution.

• ICDR: Issue of Capital and Disclosure Requirements

• SEBI: The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodities markets in India under the ownership of the Indian Finance Ministry.

• Seed Support: A very early investment meant to support the business until it can generate cash of its own (see cash flow) or until it is ready for further investments.

• Debentures: A debenture is a financial instrument with a period of more than ten years that is not secured by any security.

• EAC: An Experts Advisory Committee is responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.

The Women Entrepreneurship Platform (WEP) is a NITI Aayog initiative that seeks to bring together women from various parts of the country through a unified access portal to help them realize their entrepreneurial aspirations. It is built on three foundation pillars: Iccha Shakti, Karma Shakti, and Gyaan Shakti.

Eligibility :

Any woman entrepreneur with an established or new startup or just a business idea can benefit from this scheme.

Application procedure for Startups :

1. Visit https://wep.gov.in/.
2. Click on the “Register” button on the homepage. Following this, a registration form will appear on the screen.
3. Fill in all the details and click on the “Register” button at the bottom of the page. 
4. After completing registration, a page will appear asking for “Areas of interest” and relevant fields.
5. Fill in all the Personal Information, Business Information, and Educational information. Keep in mind that the fields might vary with the area of interest you are choosing. 
6. Successful submission of details leads you to become a member of the WEP and grants you access to several benefits.

Benefits :

WEP actively hosts a wide range of events as a platform, providing resources and promoting entrepreneurial communities.

• It provides monetary assistance, including seed capital, growth capital, line of credit( LOC), and non-credit support.
• Promotion of offline initiatives and outreach programs by partnering with other organizations.
• Incubation and acceleration support to startups founded or co-founded by women entrepreneurs registered with the program.
• Identification of skill gaps and providing online/offline training on these aspects.
• Marketing and networking support to early-stage or established entities
• Compliance services to registered users, which provides them with the essential tools to adhere to legal compliances, perform registrations, furnish accounts, make loan applications, provide license counseling, and so on.
• A like-minded community to understand the true spirit of entrepreneurship and the way forward.

To provide better support, WEP has tied up with some fortune companies like CRISIL, Facebook, SIDBI,  NASSCOM, DICE, FICCI, Mann Foundations, Shopclues, CII, and many others. The fortunes will play a key role in developing different skill sets important for a robust entrepreneurial ecosystem.

As a part of the programme, the Startup India Seed Fund Scheme was introduced in 2021 to facilitate the process of creating a robust startup ecosystem and providing financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.

Eligibility :

• Should be recognised by DPIIT.
• Startups should not have received more than Rs 10 lakh of monetary support under other significant government schemes.
• The Startup shall have been in existence for no more than two years at the time of application.
• Should be using Technology as its core product or service, creating innovative solutions in different sectors.
• Must have a business idea to develop the product with a scope of scaling
• According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the company at the time of application to the incubator for the programme.
• The seed support is generally available in grants and debt/convertible debentures.

Application procedure for Startups :

The application procedure for availing the seed fund from the incubators by the startups under the StartUp India Seed Fund Scheme is as follows:

• Go to https://seedfund.startupindia.gov.in/.
• On the top right side of the homepage, click the 'Login' button, then the 'Create an Account' option at the bottom of the "login" tab.
• The ‘Startup India’ registration page will open.
• After filling out the form, click the 'Register' button.
• An OTP will be sent. Enter the OTP and click the ‘Submit’ button.
• Go to the website again and click on the ‘Apply Now’ button on the right-hand side of the homepage. 
• Click on the ‘Apply Now’ button under the ‘For Startups’ option and further log in using the username and password registered.
• The application form will open. Put in all the details, upload the documents and click on the ‘Submit’ button.
• The application will be submitted for the selection of the startup.

Selection of Startups for the Scheme :

The Eligible Incubator will select startups for this scheme based on the following criteria:

• Idea
• Feasibility
• Novelty
• Fund Utilization Plan
• Business Plan
• Presentation
• Potential Impact

Benefits :

• Under this scheme, Financial assistance up to Rs 50 lakh will be provided to startups at an early stage through incubators.
• The incubator will disburse the seed fund to an eligible startup: 

       - As a grant for validation of “prototype development, proof of concept or product trials”-  Up to Rs. 20 Lakh

        - Investment for commercialisation, market-entry, or scaling up through debt-linked instruments - Up to Rs. 50 Lakh‍

• Once incubated, physical infrastructure, testing support, mentoring for prototype or commercialization, human resources, and legal compliances are provided to the startups, all by the incubators.‍
• For eligible startups, there are income tax and capital gains tax exemptions.

Post funding process :

Each incubator must track specific criteria for each beneficiary startup. Every beneficiary startup must present the reports to its incubators periodically. The data is submitted to Startup India in real-time via their web dashboards and further to the EAC quarterly. Each Startup’s return on investment is also reported by the designated incubator.

• Proof of concept
• Prototype development
• Progress of product development & field trials
• Turnover of startup
• Progress of market launch
• Quantum of loan, angel, or VC funding raised
• Jobs created by startup

• Udyog Aadhar Memorandum: The Udyog Aadhaar Memorandum (UAM) is a single-page registration that replaces the earlier 11-form process for MSMEs' self-certification. This could be used to prove the establishment's existence and the identity of the owner or promoter.‍

• IPO: The process of issuing shares of a private firm to the public in a fresh stock issuance is known as an Initial Public Offering (IPO). An IPO allows a firm to raise funds from public investors.‍

• NBFCs: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act of 1956 that deals in loans and advances, as well as the acquisition of shares, stocks, bonds, debentures, and other marketable securities issued by the government or local authority.‍

• Campaigns: Campaigns are well-planned efforts to promote a certain company aim, such as promoting awareness of a new product or gathering feedback from customers.‍

• Incubators: A collaborative program aimed at assisting fledgling businesses in their growth. Incubators provide workspace, seed cash, coaching, and training to help entrepreneurs handle some of the issues that come with establishing a firm.

The Marketing Assistance Scheme aims to provide marketing support to the MSMEs through National Small Industries Corporation (NSIC) to improve the marketability of the products. It also enhances the competitiveness of the MSMEs in the Indian market, encouraging more and more small-scale businesses to grow. 

Eligibility :

• MSMEs with Udyog Aadhar Memorandum (UAM) are eligible for benefits under the scheme.
• Institutions, Industry associations, and organisations involved in the MSME sector may also get support through this scheme.

Application procedure :

The applications/proposals seeking to avail of the benefits of this scheme can be submitted to the Branch Manager of the nearest NSIC office with full details and supporting documents. The proposals are then examined by a Screening Committee and shortlisted to be part of the scheme.

Benefits :

• Assistance in organising and participation in these exhibitions abroad with net budgetary support of Rs. 30 lakh per event ( Rs. 40 lakh for Latin American Countries).
• Assistance in organising domestic exhibitions/trade fairs with budgetary support of maximum Rs. 45 lakh, while for participating in these exhibitions, the amount is capped to Rs. 15 Lakh. 
• Financial assistance in co-sponsoring exhibitions as well. The budget, however, is limited to 40% of the net expenditure.
• Other monetary support in airfares, space rents, and advertisements based on size and type of enterprise.
• Marketing promotion events and intensive campaigns.‍

For the holistic development of the field of Information and Communications Technology (ICT), the National Small Industries Corporation- IT Incubator (NSIC IT Incubator) scheme encourages the spirit of entrepreneurship by turning innovative ideas into viable commercial ventures.

Eligibility :

• Must be a first-generation entrepreneur.
• Must be an MSME.
• Must be willing to pay the monthly license fee and other payable charges.

Application procedure :

One can go forward with the registration process either online or offline:

Online:

• Visit the official website of NSIC.
• Click on the “Apply Now,” and a registration page will open.
• Fill in all the required details along with all the documents needed. 
• After filling out the form, click on the “Submit” button.

Offline:

1. Download the NSIC form
2. Fill in all the details and attach the required documents.
3. Submit it to the nearest office of NSIC.

Selection process :

The applicant has to undergo a thorough scrutinisation process before getting selected to be a part of this scheme. The initial process involves 

1. Applying with a viable business plan, which further gets checked by a selection committee and selected for presentation on merit. 
2. The applicant is then called for a presentation of their business plan, and based on skills and experience, the committee takes the final decision. 
3. After selection, the applicant has to sign an agreement with NSIC to work in the Incubator and avail of the benefits. The incubation period is a maximum of 12 months which may or may not be extended to 6 months with a gap of 3 months each if the enterprise is deserving.

Benefits :

• The scheme provides built-in space (infrastructure), access to business centres, software libraries, and internet facilities. 
• Initial level counselling and skill training.
• Mentoring and legal services along with market exposure.
• Access to Seed/Venture capital and various funding sources based on the viability of the business plan and the process.
• Documentation support and various statutory formalities are required for starting an enterprise.

To improve the credit delivery system and make credit more accessible to small and medium-sized businesses, Credit Guarantee Scheme (CGS) was launched. It further accelerates the access to finance for the underprivileged, making the availability of finance from conventional lenders to new generation entrepreneurs. A credit guarantee is provided to banks and financial institutions by CGTMSE(Trust) under this scheme so that they can in turn lend collateral-free credit to MSEs. There are namely four types of Credit Guarantee schemes:

1. Credit Guarantee Scheme for banks: Borrowers avail of the scheme through banks.
2. Credit Guarantee Scheme for NBFCs: Borrowers avail of the scheme through eligible NBFCs.
3. Sub-debt scheme: Credit guarantee coverage for distressed MSMEs.
4. PM Svanidhi: Credit facilities for the street vendors.

Eligibility :

• New and existing Micro and Small Enterprises engaged in manufacturing, service, or retail activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions, etc.
• All service sector enterprises under the MSMED Act are eligible for coverage.
• The applicant must be a “First-generation” entrepreneur.

Application procedure :

• Go to https://www.cgtmse.in/Home.
• The homepage will open.
• Click on the “Register” option seen on the homepage.
• Enter your details and click on “Get OTP.”
• After typing in the OTP, the registration will be completed.
• “Login” into the page again. You will have to fill in the required information like GST details, Bank Account details, and ITR.
• Click on “Submit” to avail the benefits under this scheme.
• You can further download the financial report, calculate the guarantee, etc.

Benefits :

• This scheme strengthens the credit delivery system to the MSMEs through Banks and NBFCs.
• The larger flow of credit without any collateral or third-party guarantees. 
• The extent of guarantee cover is 50% up to a credit of Rs 10 lakh to 200 lakh per MSE borrower in the retail trade activity.
• Micro and small businesses operated or owned by women, as well as all credit or loans in the northeast region for credit facilities up to Rs 50 lakh, are covered by an 80 percent guarantee.
• For up to 5 lakh loans of micro-enterprises, the guarantee cover stands at 85%.
• A new hybrid product has also been launched wherein the collateral security can be collected for a portion of the credit facility. At the same time, the remaining part is covered under the CGS scheme.

The guarantee will commence from the e-date of payment of the guarantee fee. It will run for the agreed term credit tenure in the event of term loans / composite loans, and for a period of 5 years in the case of working capital facilities only granted to borrowers or for such period as the Guarantee Trust may specify in this regard.

• Capital Gains Tax: The tax paid on the profit received through the sale of a capital asset.

• Line of Credit: A Line Of Credit (LOC) is a revolving credit line with a predetermined borrowing limit.

• VC: Venture capital (VC) is a type of equity financing that allows entrepreneurs and other small businesses to raise funds before they start operating or making revenue or profits.

• ICTE: The Information Communication Technology & Electronics (ICTE)

• Business Plan: A business plan is a written document that explains how a company, typically a startup, defines its goals and plans to attain them.

• MSME Development Act 2006: The Micro, Small, and Medium Enterprises Development Act of 2006 is a law passed by the Indian Parliament. "Any buyer who fails to make payment to MSMEs within stipulated terms or a maximum of 45 days," according to the act, "would be liable to pay monthly compounded interest at three times the bank rate published by RBI."

• STP Unit: The Software Technology Park (STP) programme is a 100 percent export-oriented scheme for developing and exporting computer software via data communication networks or physical media, as well as professional services.

• PCT Route: The Patent Cooperation Treaty (PCT) is a 1970 international treaty on patent law. It establishes a standardised method for filing patent applications.

• Interest Subsidy: The amount of a person's or a company's profits that are taxed as interest payments on its debt over the course of a year.

• IPR: Intellectual property rights (IPR)  are the rights given to persons over the creations of their minds for a certain period of time.

• ITR: The Income Tax Return (ITR) is a document that must be submitted to the Income Tax Department of India. It comprises information on a person's earnings and the taxes that must be paid on those earnings throughout the year.

• Corpus: The sum invested in a particular scheme by all investors is referred to as the corpus.

Venture capital or equity financing primarily emerged to give the necessary financial support for start-ups in different fields. Since this financing is not solely based on funding, the start-ups can access the expertise of professionals who, in turn, play an essential role in the management of the company. Small Industries Development Bank of India (SIDBI) has come up with Venture Capital funds that extensively deal with MSMEs and co-finances in various sectors. 

Some of the venture capital funds managed by SIDBI are

• Ubharte SItaare Fund: To invest in ventures from manufacturing and service industries in domestic markets looking to enter foreign markets or mid-size enterprises trying to scale up their operations. 
• SME Growth Fund (SGF): In association with other commercial banks, this close-ended eight-year fund is dedicated to the SME sector with a corpus of RS. 500 Crore. (In divestment stage)
• National Venture Fund for Software and Information Technology (NFSIT): In association with the Ministry of Information Technology, SIDBI has designated this close-ended 10-year fund with a corpus of 1 Billion for the IT sector. (In the Divestment stage)
• Samridhi Fund: For the betterment of states like Bihar, Odisha, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Jharkhand, Rajasthan, and West Bengal, this fund provides capital to various social enterprises which can deliver both financial and social returns. 

Eligibility :

• MSME companies engaged in growth sectors like retailing, food processing, manufacturing, IT, life sciences, healthcare, infrastructure, logistics, and distribution.
• Should have high growth potential
• Should have the ability to scale up within 3-5 years of investment
• Should be unlisted at the time of investment
• Should have plans to expand operations as well as for profitable returns in the form of IPO, mergers, or acquisitions

Application procedure :

The interested entrepreneur or firm can send their proposal with a detailed business plan entailing all the background details, an executive summary of the management team, an intricate shareholding pattern, as well as company performance, and more. The proposal must be sent to the respective email addresses of the types of Venture capital funds of SIDBI they are interested in. The processing cycle widely ranges from 8 to 12 weeks, including documentation and due diligence. 

Criteria for investment :

• Long-term competitive advantage
• Strong management team
• Potential for average profitability
• Profitable exit plans
• Unlisted companies( Preferably SMEs)
• Subscription to equity/ equity-type instruments

Benefits :

• Provides long-term equity finance that holds a solid capital base for growth and development.
• The support scale is between INR 5 to INR 25 Crore in the form of equity and convertible instruments payable after seven years.
• Networking and management support 
• Assist investee companies in attracting investments from other venture capitalists

SIP-EIT is a programme that offers financial assistance to MSMEs and Technology Startups in order to file international patents. It also encourages innovation and recognizes the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.

Eligibility :

• The applicant must be registered under the Government of India's MSME Development Act of 2006.
• The applicant must be a company registered under the Companies Act of the Government of India and must meet the investment restrictions in plant and machinery or equipment set forth in the Government of India's MSME Development Act 2006.
• The application must be a technology incubation enterprise or a startup that is registered as a company and is located in an incubation center/park (in this case, a certification from the incubation center/park is required).
• The applicant must be an STP Unit that has been approved.
• The invention must be in the field of electronics or information and communication technologies.

Application procedure :

• Go to http://www.ict-ipr.in/sipeit/login.
• Create a User account by logging in after filling in all the details.
• Once “Login” is created, one can apply online for the scheme by submitting the required documents.

Selection OR Acceptance of Startups :

The acceptance of startups under this scheme depends on the following criteria:

• For a particular invention, there can be one application for foreign filling.
• An Indian patent attorney firm having experience of at least five years in handling international patent applications often handles and processes patent applications. 
• Only five applications per financial year will be considered for reimbursement from a single applicant.
• The applicant should have already filed a patent application with the complete specification for the said invention with the Indian Patent Office.
• International patent filing options include the PCT route, the Paris Convention route, or filing directly in a foreign country of the innovator's choice.

Benefits :

• This scheme provides financial support for the International filing of patents at different stages, including expenses in filing and processing.
• It also helps in entering the global market. 
• The maximum amount reimbursed per innovation shall be Rs 15 lakhs or 50% of the total expenditures paid in filing and processing a patent application up to grant, whichever is less.
• Under the scheme, the Ministry of Electronics and Information Technology aims to provide financial support to Education Institutes, Meity societies, etc., for organizing seminars & workshops on IPR awareness.

The PMMY scheme launched in 2015 aims to provide MUDRA Loans to small and micro enterprises through various commercial banks, RRBs, SFBs, NBFCs, and Cooperative Banks. The loan range may vary depending on growth, development, and funding needs. The MUDRA loan can be categorized into

1. Sishu- Upto Rs. 50,000
2. Kishore- Rs. 50,000 to 5 Lakh
3. Tarum- Rs. 5 Lakh to 10 Lakh

Eligibility :

• Must have their business plans for service sector activities or trading or manufacturing activities.
• In the case of an individual applicant, the age range must be between 18 and 65 years. 
• Must be a non-corporate and non-farm small and micro-enterprise. 

Application procedure :

If you are eligible, applying for a MUDRA loan is relatively easy and can be done both online & offline. 

Online : 

• Visit the official website of the PMMY-authorized financial institution from which you wish to avail of the Mudra loan.
• Download the relevant form depending on the type of loan (Sishu, Kishore, and Tarun).
• Fill in all the personal and business details and then “Submit” the form. 
• The application form, once received, is verified and processed accordingly. Following the verification, the loan amount is approved and disbursed.
• One can withdraw the amount with the help of a MUDRA card assigned to them.

Offline :

• Visit a PMMY-authorized bank or NBFC of your choice.
• Fill in the MUDRA loan application form with the required details.
• Submit the application form with a self-written business plan and other documents to substantiate those details.
• After successful document verification, the loan will get approved, and the desired amount will be credited.
• The loan amount can be withdrawn with the help of a MUDRA card issued after the loan approval.

Benefits :

• MUDRA loans can be taken for small amounts at affordable interest rates; also, the credit guarantee is borne by the Government.
• This scheme could be availed without any collateral or security.
• The Mudra loan scheme in collaboration with the “Make In India” campaign, helps in fostering innovation, facilitating investment, and improving skill development.
• Women Borrowers can avail this scheme with discounted interest rates.
• Relief of up to 1500 Crore will be provided to the Borrowers as Interest Subsidy under the Mudra Shishu Category.

SAMRIDH or Startup Accelerators of MeitY for Product Innovation, Development, and Growth, launched by the Ministry of Electronics and IT, aims to provide funding and acceleration to startups, predominantly software startups. The investment is extensively for brilliant solutions and proof of concepts through selected accelerators. The selected accelerators are responsible for providing a customized acceleration programme for selected 300 startups.

‍

Eligibility :

For Startups: 

• Must be recognised by DPIIT.
• Must be in the Early-growth stage.
• The product of the startup must be software-based.

For Accelerators:

• Must have operations in India.
• Must have been in the business of incubation for more than three years and supported more than 50 startups.
• Must have the required infrastructure and targeted acceleration programmes.

Application procedure for Startups :

The application procedure primarily comprises the following steps:

• Visit https://meitystartuphub.in.
• On the homepage, click on “Register” under the Startup section. 
• The registration page will appear. Fill in all the requisite details and click on the “Submit” button. 
• Following registration, one can “login” into the page for further access by filling in the Username and Password. 

Benefits :

• This scheme provides a platform for product development and business scaling in terms of investment. 
• To provide customer connect, investor connects, and international connect services.
• Financial support of up to Rs 40 lakh to the startups according to their current valuation and growth stage through accelerators.
• Customized acceleration programs for startups and provided product and capacity enhancement services.

Post selection process :

The ​​MeitY SAMRIDH Scheme will be implemented through the MeitY Startup Hub (MSH). The selected Accelerator will be responsible for developing personalized acceleration programmes, and the budget for each startup is Rs. 2 lakh. The services include- Co-learning, networking, expert diagnosis, and negotiation of investment funding from Angel Investors.  A maximum of 10 businesses and a minimum of 5 startups working in the sphere of software products can be helped by a shortlisted accelerator.

The Women Entrepreneurship Platform (WEP) is a NITI Aayog initiative that seeks to bring together women from various parts of the country through a unified access portal to help them realize their entrepreneurial aspirations. It is built on three foundation pillars: Iccha Shakti, Karma Shakti, and Gyaan Shakti.

Eligibility :

Any woman entrepreneur with an established or new startup or just a business idea can benefit from this scheme.

Application procedure for Startups :

1. Visit https://wep.gov.in/.
2. Click on the “Register” button on the homepage. Following this, a registration form will appear on the screen.
3. Fill in all the details and click on the “Register” button at the bottom of the page. 
4. After completing registration, a page will appear asking for “Areas of interest” and relevant fields.
5. Fill in all the Personal Information, Business Information, and Educational information. Keep in mind that the fields might vary with the area of interest you are choosing. 
6. Successful submission of details leads you to become a member of the WEP and grants you access to several benefits.

Benefits :

WEP actively hosts a wide range of events as a platform, providing resources and promoting entrepreneurial communities.

• It provides monetary assistance, including seed capital, growth capital, line of credit( LOC), and non-credit support.
• Promotion of offline initiatives and outreach programs by partnering with other organizations.
• Incubation and acceleration support to startups founded or co-founded by women entrepreneurs registered with the program.
• Identification of skill gaps and providing online/offline training on these aspects.
• Marketing and networking support to early-stage or established entities
• Compliance services to registered users, which provides them with the essential tools to adhere to legal compliances, perform registrations, furnish accounts, make loan applications, provide license counseling, and so on.
• A like-minded community to understand the true spirit of entrepreneurship and the way forward.

To provide better support, WEP has tied up with some fortune companies like CRISIL, Facebook, SIDBI,  NASSCOM, DICE, FICCI, Mann Foundations, Shopclues, CII, and many others. The fortunes will play a key role in developing different skill sets important for a robust entrepreneurial ecosystem.

As a part of the programme, the Startup India Seed Fund Scheme was introduced in 2021 to facilitate the process of creating a robust startup ecosystem and providing financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.

Eligibility :

• Should be recognised by DPIIT.
• Startups should not have received more than Rs 10 lakh of monetary support under other significant government schemes.
• The Startup shall have been in existence for no more than two years at the time of application.
• Should be using Technology as its core product or service, creating innovative solutions in different sectors.
• Must have a business idea to develop the product with a scope of scaling
• According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the company at the time of application to the incubator for the programme.
• The seed support is generally available in grants and debt/convertible debentures.

Application procedure for Startups :

The application procedure for availing the seed fund from the incubators by the startups under the StartUp India Seed Fund Scheme is as follows:

• Go to https://seedfund.startupindia.gov.in/.
• On the top right side of the homepage, click the 'Login' button, then the 'Create an Account' option at the bottom of the "login" tab.
• The ‘Startup India’ registration page will open.
• After filling out the form, click the 'Register' button.
• An OTP will be sent. Enter the OTP and click the ‘Submit’ button.
• Go to the website again and click on the ‘Apply Now’ button on the right-hand side of the homepage. 
• Click on the ‘Apply Now’ button under the ‘For Startups’ option and further log in using the username and password registered.
• The application form will open. Put in all the details, upload the documents and click on the ‘Submit’ button.
• The application will be submitted for the selection of the startup.

Selection of Startups for the Scheme :

The Eligible Incubator will select startups for this scheme based on the following criteria:

• Idea
• Feasibility
• Novelty
• Fund Utilization Plan
• Business Plan
• Presentation
• Potential Impact

Benefits :

• Under this scheme, Financial assistance up to Rs 50 lakh will be provided to startups at an early stage through incubators.
• The incubator will disburse the seed fund to an eligible startup: 

       - As a grant for validation of “prototype development, proof of concept or product trials”-  Up to Rs. 20 Lakh

        - Investment for commercialisation, market-entry, or scaling up through debt-linked instruments - Up to Rs. 50 Lakh‍

• Once incubated, physical infrastructure, testing support, mentoring for prototype or commercialization, human resources, and legal compliances are provided to the startups, all by the incubators.‍
• For eligible startups, there are income tax and capital gains tax exemptions.

Post funding process :

Each incubator must track specific criteria for each beneficiary startup. Every beneficiary startup must present the reports to its incubators periodically. The data is submitted to Startup India in real-time via their web dashboards and further to the EAC quarterly. Each Startup’s return on investment is also reported by the designated incubator.

• Proof of concept
• Prototype development
• Progress of product development & field trials
• Turnover of startup
• Progress of market launch
• Quantum of loan, angel, or VC funding raised
• Jobs created by startup