1WHAT IS KARNATAKA STARTUP CELL?
- Karnataka Startup Cell has been set up under the Dept. of IT, BT
- The cell shall act as a single connect for handholding upcoming startups and providing information regarding:
- Govt. Policy and Incentives.
- Facilitation in setting up business.
- Getting statutory clearances.
- Connect with related Govt. departments for product validation, clearances, mentorship etc.
2WHY SHOULD I REGISTER WITH THE KARNATAKA STARTUP CELL?
You should register with Karnataka Startup Cell if
- You are a startup registered as an entity in Karnataka
- You are looking for benefits and incentives under the Karnataka Startup Policy 2015-20
3HOW DO I REGISTER WITH THE KARNATAKA STARTUP CELL?
- Please go to the http://startup.karnataka.gov.in/ and fill up the online form
- On successful completion of the online application form and uploading all relevant documents and with proper technology justification, the application will be processed for Startup Reg Certificate
- Documents to be uploaded
- Incorporation/ Registration Certificate
- Audited Financial Statements/ Total Revenue generated letter from CA on the letterhead of CA, duly signed with seal (Format provided in the online application form)
- Self Declaration(Format provided in the online application form)
4AM I A STARTUP ACCORDING TO KARNATAKA STARTUP POLICY?
You are a Karnataka startup if:
- Yours is a Technology based startup
- Your revenues are clocking under 50 Cr
- Your company/entity is not older than 4 years if you are IT based and 7 years if you are a BT startup
- More than 50% of your qualified workforce is in Karnataka
- You are not excluded under the other exclusion principles under the policy
5HOW DOES ONE DIFFERENTIATE A TECH- STARTUP?
As per Karnataka Startup Policy a tech- startup is defined as :
“one that creates a technology based service or product or uses technology for enhancing functionality or reach of an existing product or service.”
6WHAT ARE THE INCENTIVES UNDER THE KARNATAKA STARTUP POLICY?
Once registered under the Karnataka Startup Cell your startup shall be eligible for following incentives
- self-certifications for various statutory permissions.
- VAT/ CST/ ST exemptions
- Reimbursements of Patents Spends.
- Reimbursements of Marketing Spends.
- Subsidized seats in Govt. supported Incubators, TBIs.
- A better deal for women entrepreneurs in incubators.
- Access to IDEA2PoC Funding.
- Participate in Govt. sponsored Exposure Visits.
- Make a difference through “Grand Challenges”.
- Avail Funding under GoK Fund of Funds.
- Other incentives under GoK policies.
7WHAT DOES SELF CERTIFICATION COVER?
Self certifications shall be permitted under the following Acts and the same shall be facilitated through the startup cell:
- The Factories Act 1948
- The Maternity Benefit Act 1961
- The Karnataka Shops &Commercial Establishments Act 1961
- The Contract Labour (Regulations & Abolition) Act 1970
- The Payment of Wages Act, 1936
- The Minimum Wages Act 1948
- The Employment Exchanges (Compulsory Notification of Vacancies) Act 1959
- General permission shall be available for women working in the night shifts
8WHAT DO VAT/ CST/ ST BENEFITS COVER ?
- Reimbursement of Service Tax paid by startups incubated in GoK supported incubators and CIFs whose annual turnover does not exceed Rs. 50 Lakhs for the first three years or till the incubator becomes DST certified
- Annual Reimbursement of VAT/CST paid in Karnataka, upto a maximum of Rs. 50 Lakhs turnover by incubated startup companies within a period of first three years of being incubated.
- Reimbursement of VAT/CST on goods supplied to the Incubator or incubatee.
9WHAT DO REIMBURSEMENTS FOR PATENT SPENDS COVER ?
- Domestic Patents: The cost of filing and prosecution of patent application will be reimbursed to the incubated startup companies subject to a limit of Rs. 2 lakh (0.2 million) per Indian patent awarded.
- Foreign Patents: For awarded foreign patents on a single subject matter, upto Rs. 10 lakh (1 Million) would be reimbursed. The reimbursement will be done in 2 stages, i.e., 75% after the patent is filed and the balance 25% after the patent is granted.
10WHAT DO REIMBURSEMENTS OF MARKETING SPENDS COVER ?
- Government shall provide reimbursement of 30% of the actual costs including travel incurred in international marketing through trade show participation.
- This incentive will be subject to a maximum of Rs. 5 Lakhs per year per company.
11WILL I BE ELIGIBLE FOR INCENTIVES IF I AM NOT INCUBATED?
- Many of these benefits shall be administered through identified incubators as implementation partners in order to speed up the process without compromising on due diligence in disbursal of fiscal incentives. At the same time incubators shall not insist on physical incubation of mentee incubatees so as to ensure greater touch points for incubators being supported by the Government.
- Virtual incubation shall be required for applying for incentives such as VAT/CST/ST Reimbursements, Patent filing Reimbursements, Marketing incentives, IDEA2PoC funding, Grand Challenges for Social Impact, Fund of Funds. Also for availing support under Exposure Visits programs, priority shall be given to incubatees (under virtual or physical programs) of GoK supported incubators.
12WHAT ARE THE INCUBATORS THAT ARE AVAILABLE AT SUBSIDISED COST?
- GoK IAMAI Mobile 10X Startup Hub
- GoK NASSCOM Startup Warehouse
- GIFTS Scholarship in 91 Spring Board
- Bangalore Bioinnovation Centre
13HOW DO I GET FUNDS FOR MY STARTUP?
- The registered startups under startup cell can apply for funding for their ideas or projects when the call for application under IDEA2PoC or Grand Challenges scheme is open. For regular update kindly signup. For more details write to firstname.lastname@example.org