Written by : Rajiv Singh
A Chartered Accountant in UK with 15+ years of experience in FinTech Consulting, Accounting & International Taxation. I enjoy being a Social, Foodie and Father of two young children, reachable at linktr.ee/RajivSingh.
The journey from a dream to a revenue-generating company involves the support of capital investments. However, finding funds for the initial phase of the business is not simple as it seems. If you think a bank or any other financial institution will brace you during financial crunches, then let us assure you this happens only when the pigs fly. The result is the immature death of startup companies. Realizing these difficulties, the government has initiated a new scheme that intends to provide seed funding or basic funding facilities to emerging startups. The goal is to encourage new innovations and back them with concrete financial assistance so that they can yield in the future.
The Startup India Seed Fund Scheme envisages providing money support at the early stages of a company. Thus when you commence your planning with the proof of business concept, prototyping, product trials, market entry and promotion, you can seek necessary fiscal aid from the government. Once saved at the initial stage, the venture can slowly make it to further investments and raise money by approaching banks or joining hands with other firms. The inception of the scheme can be traced back to the Department for Promotion of Industry and Internal Trade (DPPIIT) which has dedicated about Rs. 945 crore for assisting budding ventures.
The Indian PM announced the scheme on 16 January 2021, and DPIIT notified it on 21 January 2021. According to it, you can unlock financial backup from venture capital firms and angel investors after you submit proof of your concept. The scheme will support up to 3,600 entrepreneurs all around the country and create about 300 incubators in the coming four years.
India being a youthful nation, strives to promote innovative projects that suffer from the inevitable financial crisis in the present scenario. Most of these problems arise at the developmental stage of a company. Because companies cannot allocate enough funds during conceptualization, businesses will end up dying or succeeding. Giving this extra push will bring positive impacts to businesses, as more companies will flourish under the new scheme, creating more employment opportunities for the rest.
Take a look at the following eligibility requirements to qualify for the scheme;
Now let us take a look at the document criteria of the startup scheme.
To apply for the Seed Funds Scheme, open the official website of Startup India Seed Fund Scheme.
Applying for the scheme can benefit your Startup by giving additional financial support at the initial stage. If you need help with the application or find it difficult to comply with the regulations, you can contact Gotaxfile experts. We help you with the tax intricates and documentation filing of the Startup India Seed Fund Scheme and are well-equipped to assist you throughout the process. Contact us to know more!
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