Bihar Startup Registration
Are you an entrepreneur or aspiring startup owner in Bihar looking for opportunities to kickstart your venture? The Bihar government has launched a new policy called the Bihar Startup Policy 2023, aimed at promoting and supporting startups in the state. One of the key benefits under this policy is the Bihar Startup Business Loan program, offering interest-free loans of up to Rs 10 lakhs for a duration of 10 years. But how do you register for this program and take advantage of these benefits? In this blog post, we’ll guide you through the process of registering for the Bihar Startup Policy 2023 and discuss its main objectives and benefits for young entrepreneurs and startups in the state.
A. Explanation of Bihar Startup Yojana 2023
The government established the Bihar Startup Yojana 2023 as a scheme to promote entrepreneurship and provide a platform for Bihar’s youth to start their own businesses. The main objective of this initiative is to encourage, promote, and inspire young entrepreneurs to pursue entrepreneurship through various initiatives. The Yojana helps to increase the viability of new businesses by providing seed funding and matching grants. The scheme also set up entrepreneurship development and facilitation centers to promote entrepreneurship among the youth. The state government helps new businesses obtain clearances in a timely and efficient manner and supports startups with mentorship, encouragement, and training. The Bihar Startup Policy provides an interest-free loan of up to 10 lakhs to those who qualify. The application process is straightforward: simply register on the Startup Bihar portal, complete certification by the Nodal Agency and apply for benefits via the portal. The Yojana aims to create a startup ecosystem in the state that nurtures and supports businesses.
B. The purpose of the startup scheme
The Bihar Startup Yojana 2023 is a scheme introduced by the Department of Industries in Bihar to boost the startup ecosystem in the state. The purpose of the scheme is to provide financial assistance and support to aspiring entrepreneurs and startups. The scheme aims to encourage innovation, entrepreneurship, and job creation in Bihar. The scheme provides fiscal incentives and cost reimbursements for incubating startups, registering IPRs, and securing seed grants. The scheme also exempts startups from licensing and inspections for five years. Startups can apply for funding through the Startup Bihar portal and avail themselves of the benefits provided under the scheme.
Moreover, the scheme gives recognition and certification to startups through the Nodal Agency. The startup must be at a commercialization stage to qualify for the benefits. The scheme also has a special provision for SC/ST entrepreneurs, allotting 10% spaces in industrial parks and reserving 22% of the total corpus for funding startups from the category. The B-Hub initiative launched by the Bihar Government provides co-working cum mentoring facilities to startups, making the ecosystem startup-friendly and flexible. The scheme holds immense potential to catalyze the startup scene in Bihar, creating a favorable environment for innovation and economic growth.
C. Importance of the Yojana for Bihar’s youth
Bihar Startup Yojana 2023 is essential for the youth of Bihar as it presents an opportunity for them to become entrepreneurs and start their own businesses. The government aims to encourage and promote entrepreneurship among young people by offering them seed money, grants, and other incentives. This Yojana benefits young people who have viable startup ideas and provides them with access to financial capital, mentorship, and regulatory support. Additionally, this scheme offers female entrepreneurs increased incentives, such as a 5% increase in benefits through rigorous product improvement training and a 3 lakh rupee grant. The startup Yojana also focuses on empowering Dalits, Tribals, and persons with disabilities by allocating 15% of founders from these groups. This provision provides greater opportunities for traditionally marginalized groups to participate in the startup ecosystem and reap benefits from this initiative. The Bihar Startup Yojana, therefore, plays a crucial role in promoting socio-economic development and creating new job opportunities for the youth of Bihar.
II. Eligibility for Bihar Startup Registration
A. Criteria for self-declared funding
Entrepreneurs in Bihar can benefit from self-declared funding under the Bihar Startup Yojana. To be eligible for this funding, the startup must meet certain criteria. Firstly, the startup should be registered and incorporated in Bihar, and should have a commercialization stage. Secondly, the startup must have successfully mobilized investments from State registered Angel Investors. In such cases, the State Government will give a success fee of 2% of the investment to the Startup. Additionally, startups can qualify for a Seed Grant of up to Rs 10 Lakhs per Start-up as an interest-free loan for 10 years. This financial assistance will be released on achieving milestones/phases and performance parameters as defined in the rating system. The actual amount of funding will be based on the assessment made by a rating agency. The loan must be returned after 10 years. Furthermore, self-declaration must be submitted by startups annually in the format prescribed by the State Government. These criteria offer startups considerable support, making Bihar an ideal place to establish a new business venture.
B. Qualification for the receipt of awards
Qualifying for the receipt of awards under the Bihar Startup Yojana is not an easy feat, but it is definitely worth the hard work and dedication. To be eligible for the awards, there are certain criteria that startups must meet. First, they must have obtained self-declared funding, or have received an award. Additionally, they must be at the commercialization stage and have successfully mobilized investments from state registered angel investors. Early stage startups that have obtained funding from angel investors can also qualify for the award. The certification by the Nodal Agency and registration with an incubation center is also mandatory for startups to receive the award. Finally, the rating agency assesses the performance of the startups based on predefined milestones and performance parameters to determine the actual amount of funding. Once the startup qualifies for the receipt of awards, it can receive a seed grant of up to Rs 10 Lakhs as interest-free loans for ten years, along with other benefits like fiscal incentives and reimbursement of costs.
C. Commercialization stage requirement for startups
To apply for benefits under the Bihar Startup Yojana, startups should be at a commercialization stage. This means that the startup should have developed a full product or service and have tested it in the market. They should have acquired customers, generated revenue, and be able to demonstrate growth potential. This requirement ensures that the startups receiving benefits have a higher chance of success and will contribute to the overall economic growth of Bihar.
Apart from commercialization, startups must also meet other criteria to be eligible for benefits such as obtaining funding from State registered angel investors, being certified by the Nodal Agency, and self-declaring annual funding. Additionally, the state government has provided specific fiscal incentives for SC/ST entrepreneurs, reimbursement costs of incubating a startup, and fiscal incentives to incubators.
These efforts showcase Bihar’s commitment to the development of startups in the state, and the commercialization stage requirement ensures that only promising startups receive benefits that can lead to their growth and success.
D. Startups that have obtained funding from State registered angel investors
Startups that have received funding from State registered angel investors have an added advantage under the Bihar Startup Policy. According to Syed Shahnawaz Hussain, the industry minister of Bihar, such startups will receive an additional 2% of the total investment as a success fee from the state government. If a startup is successful in raising funds from an angel investor and still needs additional funds, they can seek government help as there is a provision of a matching loan set up under the Startup Fund Trust of Bihar’s industries department. This provision allows startups to receive a loan amount that matches the amount they have raised from an angel investor. The Bihar Startup Policy also offers an interest-free seed fund of Rs. 10 Lakh to startups for a period of 10 years, and a grant of Rs. 3 Lakh for product development and training if a startup participates in an accelerator program. All these provisions are aimed at attracting more investments and boosting entrepreneurship in Bihar.
IV. Additional Incentives for Startups
A. Specific fiscal incentives for SC/ST entrepreneurs
The Startup Yojana offers specific fiscal incentives for SC/ST entrepreneurs, providing a much-needed boost to their businesses. The scheme recognizes the importance of promoting diversity and inclusivity in entrepreneurship, and the incentives are designed to facilitate the growth of this category of entrepreneurs. Some of the key incentives include:
– Additional financial assistance: SC/ST entrepreneurs can avail additional grants, exemptions, or subsidies other than the limit fixed under the policy.
– Reserved funding corpus: 22% of the total funding corpus for startups is reserved for SC/ST entrepreneurs.
– Increased incentive limits: The maximum limit of all kinds of incentives (except for land) is increased by an additional 15% across all categories (i.e., MSME & large units) for SC/ST entrepreneurs.
– Fiscal incentives for incubators: Incubators supporting SC/ST entrepreneurs can receive a fiscal incentive of 3% of the investment received by the incubatee from SEBI registered AIFs or grant received from Government of India for promoting technology-based (IPR) startups.
These fiscal incentives cater specifically to the needs of SC/ST entrepreneurs, encouraging them to start and grow their businesses without facing undue financial burdens.
B. Reimbursement cost of incubating a startup
The Bihar Startup Yojana 2023 has provisions to reimburse the cost of incubating a startup idea up to Rs 2 lakh. This means that startups can avail of financial support for incubation expenses incurred during the early stages of their ventures. The incubation support is provided free of cost for three years, enabling startups to use common infrastructure like R&D labs, testing labs and access to shared services like accounting and technology. The state government has also set up a nodal agency with an initial corpus of Rs 50 lakh to handhold SC/ST, differently-abled and women entrepreneurs in setting up their ventures. Additionally, there is a 15-percent incentive for SC/ST/differently-abled and 5-percent for women-run enterprises as well. The policy also provides reimbursement of the cost of incubation for startups, access to angel investors, and free-of-cost valuation for startups to facilitate their access to financing and incubation support. All in all, Bihar Startup Yojana 2023 has made a serious effort to encourage entrepreneurship by supporting startups with fiscal incentives in the state.
C. Fiscal incentive to incubators
The Startup Yojana provides fiscal incentives to incubators to encourage them to nurture budding entrepreneurs and startups in the state. According to the policy, the government will reimburse the cost of incubating a startup up to Rs 2 lakh. It also offers a 15% incentive for startups promoted by SC/ST/differently-abled individuals, while women-run enterprises get 5%. The policy aims to establish entrepreneurship development centers and facilitation centers to promote entrepreneurship among young people. Common infrastructure spaces are also provided to complement shared office space, along with financial incentives and other perks. The platform offers startups complete one-stop resources for funding, regulatory support, mentoring, and project management assistance, including appointed angel investors and alternative investment funds. The policy also provides startups with a single portal for all statutory clearances from regulatory authorities, free registration/inspection requirements exemption under various state acts for five years, and 10% reservation in forthcoming industrial parks/SME clusters for incubators/startups/common infrastructure. Incubators can benefit from the fiscal incentives offered by the policy to help Bihar emerge as the most preferred destination for startups and entrepreneurs.
D. Allotment of 10% spaces in various industrial parks
The Startup Policy 2023 has been designed to spur entrepreneurship in the state. One of the attractive benefits for startups is the allotment of 10% spaces in various industrial parks. This provision offers young entrepreneurs the opportunity to work in a collaborative environment and share resources and expertise, giving them the impetus to take innovative ideas to the next level. Startups that take advantage of these spaces also benefit from reduced overheads and may be eligible for access to support services such as mentoring, coaching, and business development. The provision of co-working spaces, specifically designed for new businesses, offers a dynamic approach to supporting early-stage entrepreneurs. This provision complements other fiscal incentives provided under this scheme, such as interest-free loans, cost reimbursement for incubation, and mentoring. The Bihar Startup Policy 2023 does not discriminate against any target group and addresses the needs of all aspiring entrepreneurs in the state.
V. Application Process
A. Register on the Startup Bihar portal
If you’re a budding entrepreneur in Bihar, you don’t want to miss the opportunity to be a part of the Bihar Startup Policy 2023. To be eligible for the benefits of this scheme, you must first register on the Startup Bihar portal. Here are the steps to get started:
1. Visit the Startup Bihar portal at startup.indbih.com and click on the register button on the homepage.
2. Carefully read the instructions and fill out the registration form with your details.
3. Submit the form after reviewing your information carefully.
4. Once approved, you’ll receive a certification from the nodal agency that you can use to apply for benefits via the portal.
Why register on the Startup Bihar portal? Doing so will provide you with access to a range of benefits, including interest-free funding of up to Rs 10 lakhs and access to incubators and coworking spaces. Additionally, registered startups will be exempted from licensing/registration for operations for a period of 5 years, and will be given fiscal incentives for registering their intellectual property. Don’t miss out on this opportunity to take your startup to the next level!
B. Certification by Nodal Agency
To qualify for the benefits of the Bihar Startup Yojana, startups must be certified by the Nodal Agency. The Nodal Agency is responsible for the evaluation of startups based on certain parameters and criteria. Startups must be at a commercialization stage and have successfully mobilized investments from State registered Angel Investors to qualify for the benefits. Additionally, early-stage startups that have obtained funding from State registered angel investors can also apply for certification. To become certified, startups must register on the Startup Bihar portal and get recognized. Once registered, they need to apply for the benefit through the portal. Certification by the Nodal Agency is a critical step in the process of accessing the various fiscal incentives for startups offered by the Bihar government. The certified startups can then apply for financial assistance, including seed grants and reimbursement costs for incubating a startup. Overall, Certification by the Nodal Agency is a crucial step in the process of accessing the many benefits offered by the Bihar Startup Yojana.
C. Applying for benefit via the portal
To apply for benefits under the Bihar Startup Yojana, entrepreneurs need to register on the Startup Bihar portal. The process is simple and can be completed in a few easy steps. Here is what you need to do:
1. Visit the Startup Bihar portal at startup.bihar.gov.in.
2. Click on the ‘Register’ button on the homepage.
3. Fill in your personal and business details on the registration form.
4. Upload any necessary documents, such as your business plan, PAN card, and Aadhar card.
5. Once your application is submitted, it will be reviewed by the nodal agency for verification and certification.
6. If your application is approved, you will receive a certificate of recognition under the Bihar Startup Yojana.
7. You can then apply for benefits through the portal by filling out the relevant forms and submitting them online.
8. The benefits you are eligible for will depend on your business type, stage of development, and other criteria.
Overall, the Startup Bihar portal is an excellent resource for aspiring entrepreneurs in the state, providing them with access to funding, mentorship, regulatory support, and other services. By registering on the portal and applying for benefits under the Bihar Startup Yojana, you can take your business to the next level and contribute to the growth and development of Bihar’s economy.
VI. Overview of the Bihar Startup Yojana and its benefits
The Bihar Startup Yojana 2023 is a government initiative that aims to promote and encourage young entrepreneurs in Bihar to start their own businesses. The policy provides them with a favorable environment to foster and grow their startups. One of the primary benefits of this scheme is that it offers an interest-free loan of 10 lakhs to budding entrepreneurs in Bihar for ten years. In addition, startups that qualify for this scheme are provided with numerous fiscal incentives such as reimbursement cost of incubating a startup, fiscal incentive to incubators, and allotment of 10% spaces in various industrial parks. Moreover, specific benefits are provided to SC/ST entrepreneurs for their encouragement. The registration process for the Bihar Startup Yojana is relatively simple, and interested individuals can apply via the startup Bihar portal. In conclusion, with its practical objectives, supportive features, and incentives, the Bihar Startup Yojana is an excellent initiative by the government to encourage young entrepreneurs and foster their startups in the state of Bihar.
VII. Documents required for Bihar Startup Registration:
1. Certificate of Incorporation or Registration
2. Memorandum of Association and Articles of Association
3. PAN card of the company
4. Identity proof and address proof of the directors and shareholders
5. Proof of address of the registered office
6. Bank account details
7. Tax registration certificate
8. Business plan and project report
VIII. Advantages of Bihar Startup Registration:
1. Easy access to funds and loans from the government and financial institutions
2. Tax exemptions and other benefits provided by the government
3. Recognition and credibility in the market
4. Access to networking and mentorship opportunities
5. Protection of intellectual property through patents and trademarks
IX. Disadvantages of Bihar Startup Registration:
1. Lengthy and complex registration process
2. Ongoing compliance requirements and costs
3. Restrictions on business activities and investments
4. Risk of losing control of the company through equity dilution
X. Process of Bihar Startup Registration:
1. Choose a suitable legal structure for the startup
2. Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN)
3. Reserve a unique name for the company through the Ministry of Corporate Affairs (MCA)
4. Prepare and file the Memorandum of Association (MOA) and Articles of Association (AOA) with the Registrar of Companies (ROC)
5. Obtain a Certificate of Incorporation from the ROC
6. Register for tax and other compliance requirements
XI. Types of Bihar Startup Registration:
1. Private Limited Company
2. Public Limited Company
3. Limited Liability Partnership (LLP)
4. One Person Company (OPC)
5. Partnership Firm
XII. Frequently Asked Questions about Bihar Startup Registration:
1. What is the eligibility criteria for Bihar Startup Registration?
– The startup must be less than 10 years old, have a turnover of less than Rs. 100 crore, and be registered in India.
2. What is the registration fee for Bihar Startup Registration?
– The registration fee varies depending on the legal structure chosen for the startup.
3. What is the validity period of Bihar Startup Registration?
– The registration is valid as long as the startup continues to meet the eligibility criteria and complies with ongoing requirements.
4. Can foreign nationals invest in Bihar startups?
– Yes, foreign nationals can invest in Bihar startups, subject to certain restrictions and compliance requirements.
5. Is it mandatory to register a startup in Bihar?
– No, it is not mandatory to register a startup in Bihar, but it provides several benefits and advantages to the startup.