Govt To Set Up Credit Guarantee Fund (CGF) For Start-Up Companies

The Government is planning to set up a Credit Guarantee Fund (CGF) for encouraging start-up companies with a view to providing funding facilities in the country. The scheme has yet to be made operational.

Incentives being provided to Startups under Startup India initiative will be:

  1. Self-Certification under 6 Labour Laws & 3 Environmental Laws
  2. Relaxations in Public Procurement Norms
  3. Faster exit under the Bankruptcy Code
  4. Rebates on Patent & Trademark filing fees, support from facilitators and expedited examination of Patent application
  5. Income Tax exemption
  6. Exemption from Income Tax on investments received above fair market value
  7. Funding support under the Fund of Funds for Startups
  8. Guidance and facilitation support from Startup India Hub

Incidentally, the Department of Industrial Policy and Promotion had hosted a Startup India Global Venture Capital Summit 2018 on 7th December 2018 in Goa.

It was a gathering of global fund managers, limited partners, officials from the Government of India and innovative startups. The dialogue focused on the huge return-generating potential of India’s vast and diverse market monetized through cutting-edge technologies supported by investor-friendly regulations. The objectives of the Summit were:

  1. Showcasing the opportunities in India by discussing and highlighting sectors that provide a wide array of investible opportunities
  2. Increasing capital flow for Indian startups by showcasing high-quality tech & non-tech Indian startups to the global investor community
  3. Fostering ease of doing business by Identifying and discussing issues raised by the investor community

The event was attended by 30 Startups of which 27 were Indian Startups and 3 Startups were from the United States of America. The number of Indian and foreign Venture Capital funds that attended the summit is given below:

 

S. No. Country Unique Funds
1 India 45
2 Japan 12
3 USA 3
4 China 2
5 Hong Kong 2
6 Korea 1
7 Russia 1
8 Singapore 1
9 Sri Lanka 1

8,993 startups were recognized by Department of Industrial Policy and Promotion during the year 2018.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha today.

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