This move aims to further strengthen the startup ecosystem by fostering innovation and creating a self-sufficient structure for the sector.
Launched on January 16, 2016, the Startup India initiative encompasses a variety of programs and schemes designed to support and nurture startups in India. Under this, several programmes have been rolled out to support entrepreneurs, build a robust startup ecosystem and transform India into a country of job creators instead of job seekers.
The new company will be industry-led, similar to Invest India, and will manage its affairs independently. It will also involve the National Startup Advisory Council and potentially SIDBI. This initiative is expected to support entrepreneurs and transform India into a country of job creators.
The Small Industries Development Bank of India (SIDBI) is expected to play a significant role in the new not-for-profit company being set up by the Indian government to consolidate all Startup India initiatives.
Section 8 of the Companies Act, 2013, pertains to the formation of not-for-profit organizations in India. These companies are established with the objective of promoting fields such as commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection.
The Non-profit companies are formed to promote charitable purposes rather than to earn profits. Profits, if any, are reinvested in the company’s objectives and not distributed as dividends to members. Such companies enjoy certain exemptions and benefits under the Companies Act, such as reduced compliance requirements.
At present, Startup India is housed in Invest India, which is a national body to promote investments.
"We will support it as a catalyst so that policy-wise, it is on the right track. It will have an independent board and organisation structure and we would do a little oversight. The National Startup Advisory Council can also be a part of it," Goyal said.
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