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What is Karnataka Startup Cell?

  • Karnataka Startup Cell has been set up under the Dept. of IT, BT and S&T
  • 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.

Why should I register with the Karnataka Startup Cell?

  • You should register with Karnataka Startup Cell if
    • You are a Karnataka based startup
    • You are looking for incentives under the Karnataka Startup Policy 15-20

How do I register with the Karnataka Startup Cell?

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?

  • GoK IAMAI Mobile 10X Startup Hub
  • GoK NASSCOM Startup Warehouse
  • GIFTS Scholarship in 91 Spring Board
  • Bangalore Bioinnovation Centre