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Business Formation
Odisha aims to emerge amongst the top 3 Startup Hubs in India by 2020.   This startup policy would provide incentives and exemptions over and above the Startup policy of Government of India and any other existing policy in the State (Well that’s a good sign!). The Odisha Startup policy will remain in operation for a period of five years from the date of its notification or until substituted by another policy, whichever is earlier. When you read through this blog, you would find Odisha Startup Policy a dream comes true.


What is the mission behind this Startup policy?
  • Odisha to become one of the top three Startup destinations in the country
  • Fiscal and non-fiscal benefits to startups in a transparent and time-bound manner
  • Startup friendly Rules, regulations and legislation.
  • Robust governance structure that enables hassle-free, time-bound statutory clearances and monitoring of this policy
  • Ecosystem: Which means: Creation of world-class physical infrastructure to support Startups; Promoting the culture of innovation through Academic Interventions; Institutionalizing the culture of entrepreneurship by providing training for the requisite Skills.


  What are the Funding and Incentives covered in the policy?

 
1. Startup Capital Infrastructure Fund:
A Startup Capital Infrastructure fund with an initial corpus of Rs. 25 core will be set up to support the development of hard and soft infrastructure for the startup ecosystem in the State such as physical infrastructure for incubators including testing labs, design studio, tool rooms, virtual incubators etc.  

 
2. Assistance at Idea or Prototype Stage:
  • Institution or Incubator or Industry will be supporting the innovator by providing mentor services and would allow the innovator to use facilities available to them.
  • Rs. 10,000 per month will be provided to the innovator as sustenance allowance for one year whose project is certified by the Nodal Agency.
  • Assistance of Rs. 5 lakhs shall be provided to the institution or Incubator or Industry for mentoring service towards each certified Startup
  • Need-based assistance up to Rs. 10 lakhs will be provided to a certified Startup for cost of raw material or components and other related equipment required for the innovative process for the new product development
 
3. Assistance once the Idea or Concept gets commercialized:
  • Marketing or publicity assistance up to Rs. 5 lakh will be provided for the introduction of the innovated product in the market.
  • VAT/CST paid in Odisha by the Startup companies shall be reimbursed as per the Industrial Policy 2015.
  • The Startups shall be exempted from VAT scrutiny for 3 years from the date of certification.
  • The cost of filing and prosecution of a patent application will be reimbursed to the Startup companies as per the Industrial Policy 2015.

 4. Assistance for Startup Funding:

Has the government encouraged banks and other financial institutions to extend and enhance their lending facilities to Startups and set up dedicated desks for Startups in select branches for easy funding? The Government also encourages Angel InvestorsNetwork and various seed capital funding agencies to forge a strategic partnership with industry or Startup associations in the State.

 
 
How will the Self-Certification and Compliance Incentives work? 
 
Startups shall be exempted from inspections under the following Acts and the Rules framed thereunder, barring inspections arising out of specific complaints. Startups will be permitted to file self-certification, in the prescribed formats under various acts:
  • Industrial Disputes Act, 1947
  • Trade Unions Act, 1926
  • Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
  • Industrial Employment (Standing Orders) Act, 1946.
  • Other such laws are Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • Payment of Gratuity Act, 1972 g) Contract Labour (Regulation and Abolition) Act, 1970
  • Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
  • Employees’ State Insurance Act, 1948
  • All Labour Laws covered under the Voluntary Compliance Scheme of State Labour & ESI Department
General permission shall be available for 3-shift operations including women working in the night for Startups, subject to such units taking the prescribed precautions with respect to safety and security of employees.   
 
 
What kind of Support and Assistance will the policy have in place?
 
Smart Cities and AMRUT Cities The Smart Cities and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) cities planned by the Ministry of Urban Development, Government of India and the Government of Odisha shall earmark designated areas for development for Startups.   State Government Departments and Agencies to set an annual goal of procurement of products and services rendered by Micro and Small Enterprises to minimum 20% of the value of their requirement within a period of three years and thereafter overall procurement of the minimum of 20 % from Micro and Small Enterprises shall be mandatory. As per the notification, there would not be any minimum turnover requirement for Micro and Small Enterprises in participating in procurement process under this policy. It is further clarified that all State Government Departments and Agencies may additionally relax the condition of prior experience with respect to Startups in all public procurements subject to meeting of quality and technical specifications.   

 
How is the governance of the policy going to work? 
 
To have a proper implementation and smooth functioning of all the provisions to facilitate the Startups, the policy shall be governed by a 2-tier governance structure:
  • Startup-council or State Level Implementation Committee
  • Task Force based review mechanism
Is Odisha the destiny’s child for many startups, welcoming you!   Still, have some questions in mind? Let us connect. It’s your chance to become the Next Big Thing, Start your startup now  🙂
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Business Formation, IP, Uncategorized

Suits created by Aaron Korsh, known as the most educated program on television, modernized the perception of lawyers worldwide, to a billionaire businessman who does brilliant things for his firm called Pearson Specter Litt. Startups have N number of things to learn from this tv series because learning can happen from anything and at any time. Top 5 things Startups should learn from SUITS:

1. Some Rules are to be followed: Your startup might be at its early stage or at fundraising stage. But hey, there are some rules you need to keep in mind. First things first, you need to register your startup as a company, make the usage policy transparent, pay your taxes, because you are never into existence until you are legally there.

2. Plan Big: Why do you have to let go your startup idea easily, believe in it, may be you are bringing an innovation to the market. Give your company that deserving IP rights, copyright and trademark. Remember the word impossible can spell out I am possible. 3. Win your battles before they’ve even been fought: your battle is with your competitor, that one alternative which plays a key role in five forces. Being prepared for the battle from the legal point of view will not only give you the edge but adds value during fundraising.

4. Fight the problems you face. Sometimes things get difficult but you should stand your ground: You may require suing your competitor for, maybe, for a copyright issue, if you just let go off your hands, one day the problem will be on your neck, don’t breath by taking that risk.

5. Don’t try to lose small, try to win big: The take is your startup’s future, startups are growth bombs, known for its style of taking risks, so just do it, but with care because everyone is equal in front of law, while as an entrepreneur it is important to have a team working along with you, it is equally important to understand what needs to be done and what the compliances are.   

We, your Wazzeer can be the game changer by standing behind your business and protecting in all legal and accounting matters. Let’s talk!

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