The economy of a state is heavily reliant on creativity and entrepreneurship. The state of Punjab has a reputation for being a leader in terms of overall prosperity and development. Industry, agriculture, education, health, literature, sports, arts, and culture are only a few of the areas where the state has excelled. Punjab is endowed with world-class infrastructure, human resources, and enterprising and forward-thinking people who aspire to transform every possible opportunity into a booming success.
Furthermore, the State has designated start up and entrepreneurship as a critical pillar for economic development, job creation, productivity, and wealth creation. The Startup Punjab and Entrepreneurship Development Policy has been launched, based on the Government of India’s Startup Action Plan and Standup India scheme. As well as the Punjab Government’s Industrial and Business Development Policy 2017.
What are the Benefits of Startup Punjab Scheme?
- Eligible Startups will receive an annual interest subsidy of 8% on the rate of interest charged.
- Loans obtained from scheduled banks/financial institutions for a period of 5 years, up to a maximum of INR 5 lakh per year.
- For a period of one year, eligible Startup units developed in the State, operating from Incubators/IT Parks/Industrial Clusters or any other notified site, will be eligible for reimbursement. 25% of lease rental subsidy, subject to a cap of INR 3 lakh per annum.
- A Seed Grant of up to INR 3 lakh per startup will be given. Concept validation, prototype creation, assistance with travel costs, field/ market research, skill training, marketing, and other initial start-up activities, among other things. Seed funding for startups will be channelled into state incubators.
What is the Eligibility for Startup Punjab Scheme?
- With previous fiscal year’s annual turnover of not more than INR 25 crores. Working on product, method, service innovation, change, and growth, on whether it’s a scalable business model with a high potential for wealth creation or job creation.
- The entity cannot be established by the dissolution or reconstruction of an existing corporation, nor can it be generated by the reconstitution or demerger of an existing operation.
- The corporation should not be a holding company or a subsidiary of an established company. A startup’s subsidiary will be an exception to this clause.
- It has to be registered as a Private Limited Company as defined by the Companies Act, 2013. Otherwise a registered Partnership Firm as defined by Section 59 of the Partnership Act of 1932, or a Limited Liability Partnership as defined by the Limited Liability Partnership Act of 2008 in India. It should not be earlier than 7 years, with a maximum of 10 years for Biotechnology Companies;
- Under the Punjab Shops and Commercial Establishment Act of 1958, the entity/company will be expected to be registered in Punjab.
- The company is expected to hire at least half of its total skilled staff from Punjab, excluding contract workers.
Whhat are the Documents Needed for Startup Punjab Yojana?
- Passport size photograph of the applicant
- Academic qualifications of the applicant
- Project Report/Business Plan
- Birth Certificate
- Voter ID/Ration Card
- Caste Certificate
- Proof of business address
- The applicant must not be at fault in the Bank.
How to apply for Startup Punjab Scheme?
Visit the following website to register for the policy