Did you know that there is a 30 percent increase in the registered start-up in Punjab in the last three years? This tremendous increase can be attributed to targeted programs such as the Startup Punjab scheme which is a government-initiated project to promote entrepreneurship, innovation, and employment in the state. Be it a first-time entrepreneur or an experienced business owner interested in expansion, Punjab provides a favorable environment in terms of funding, mentorship, incubation, etc. 

Here in this blog, we are going to take you through all that you need to know, including the registration procedures and eligibility criteria, financial incentives and resources, to help you start your startup in Punjab successfully.

What is Startup Punjab Scheme?

Startup Punjab Scheme is a state government program under which innovation, entrepreneurship, and employment will be facilitated. It provides diverse opportunities to aspiring entrepreneurs such as funding, mentorship, and incubation services. One of the main aspects of the program is the Startup Punjab Seed Fund that entails the provision of the early-stage funding to startups with potential.

This scheme is being driven by the Punjab Startup Policy that plans to transform Punjab into one of the leading startup destinations in India. Under this policy, the businesses that are eligible are able to get the support under the Invest Punjab Scheme, with certain eligibility criteria on the basis of innovation, scalability, and creation of employment to the locals.

In a further boost to entrepreneurship, there are also numerous Punjab government subsidy schemes available to startups dealing with manufacturing, services and tech-based businesses. Tax exemptions, capital subsidies, and interest subvention are some of the incentives that many startups in Punjab are enjoying.

In addition, young entrepreneurs can be allowed a Punjab monthly allowance startup benefit that serves as a sustenance grant when they are working on their business concept during the start-up phase.

In general, the Startup Punjab Scheme is a complex support mechanism that assists in transforming ideas into successful businesses.

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. Investors will channel seed funding for startups into state incubators.

What is the Eligibility for Startup Punjab Scheme? 

  • With the 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 dissolution or reconstruction of an existing corporation cannot establish the entity, nor can the reconstitution or demerger of an existing operation generate it.
  • The corporation should not be a holding company or a subsidiary of an established company. However, a startup’s subsidiary will be an exception to this clause.
  • One must register it 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;
  • The Punjab Shops and Commercial Establishment Act of 1958 requires the entity/company to register in Punjab.
  • The company expects to hire at least half of its total skilled staff from Punjab, excluding contract workers.

What are the Documents Needed for the Startup Punjab Scheme?

  • 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.

Why is Finline Your Ultimate Partner to Create Project Reports for Bank Loan?

The Startup Punjab Scheme is an excellent chance for every person who intends to establish a business in Punjab. It assists in transforming ideas into prosperous companies through seed financing, entrepreneurial-friendly policies, subsidies, and assistance. But to get these benefits—especially loans—you need a strong project report. This report shows the bank that your business idea is practical and worth funding.

That’s where Finline can help. With Finline, you can create a clear and professional project report in less than 10 minutes, in your own language. Our reports are accepted by all public and private banks in India.
Click now to create your report and take the next step for your business.

Startup Punjab Scheme FAQS

 Startup Punjab is a government program to encourage entrepreneurs within the state. It provides seed funds, mentoring, incubation, ease of doing business and access to state and central government schemes to startups. It forms a robust ecosystem to support the entrepreneurs to launch and grow their businesses.

 Startups interested are entitled to a funding of up to 25 lakh under Startup Punjab Seed Fund. This will depend on the stage, potential and scalability of the startup. This financing is used in covering the initial expenses such as the product development, operations, and marketing.

 The Punjab Startup Policy provides different incentives such as interest subsidies, capital subsidies, reimbursement of SGST, exemptions of electricity duty, and financial grants to startups in incubators. These advantages aim at lowering the costs of business and stimulating its growth.

 Yes, manufacturing start-ups can be given some more incentives including increased capital subsidy, infrastructure support and zone-wise incentives in the form of schemes like Banglashree. The policy understands that there is an increased cost of setting up in manufacture and provides customized benefits to the same.

 Yes, Finline is a reliable platform that assists entrepreneurs to prepare professional project reports, otherwise referred to as business plans swiftly. Such reports play a very important role in borrowing loans or funds through Startup Punjab and the reports of Finline are accepted by all the leading banks in India.