The representatives from the cell shall call you back
Am I a Karnataka Startup?
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
How 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."
What 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 Idea to a POC 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.
What 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
What 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.
What 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.
What do Reimbursements of Marketing Spends cover ?
Government shallprovide 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.
Will 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, Idea to POC 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.
What are the Incubators that are available at subsidised cost?