Startup Benefits

Once registered under the Karnataka Startup Cell a 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.
 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.
 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.
 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.
 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.
 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
___________________________________________________________________________
GoI DPIIT-Recognised Startups are eligible for the following benefits:
 Relaxation in public procurements norms under Labour & Environment laws

 Fund of Funds for Startups (FFS)
 Faster exit for Startups
 DPIIT-Recognised Startups may apply to IMB for the following benefits –
 Section 80 IAC: Income Tax exemption for 3 out of 7 years
 Intellectual Property Rights (IPR) benefits
- Fast-tracking of Startup patent applications: The patent application of Startups is fast-
tracked for examination and disposal. The process is much faster for recognised
Startups.
- Panel of facilitators to assist in IP applications - Facilitators are responsible for
providing general advisory on different IPRs, and information on protecting and
promoting IPRs in other countries. Central Government bears the entire fees of the
facilitators for any number of patents, trademark or designs, and Startups only bear the
cost of the statuary fees payable.
- Rebate on filing of application: Startups are provided an 80% rebate in filing of patents
vis-a-vis other companies bringing down the cost from INR 8,000 to INR 1,600. This
helps them cut down on costs in their early years. 50% rebate is also provided in filing of
Trademarks vis-a-vis other companies decreasing the cost from INR 10,000 to INR 5,000.
 Self-Certification
• Learning and Development Programs – Step-by-step guide to starting a business
in India
• Government Schemes – Centralized repository of all Government schemes for
the Startup Ecosystem Actors
• State Startup Policies – Single point to access all notified Startup Policies by the
respective State Governments
• Pro Bono Services – Get free applications, cloud credits, legal and banking
support from our partners
• Knowledge Bank – A quick walkthrough on all things Startup, including company
registration, investor engagement, legal considerations etc.
• Tools and Templates – A repository of sample templates for all legal & HR
documents, investor decks, deeds, contracts etc.
• Networking – Connect with people from the Startup Ecosystem on the portal
• Idea Bank – Looking for an Idea for Your Startup? We’ve listed some problem
statements which require innovative solutions
• Programs & Initiatives – Apply for acceleration, mentorship programs & other
challenges across the globe

Startup Benefits

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Startup Benefits

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Once registered under the Karnataka Startup Cell a startup shall be eligible for following

GoI DPIIT-Recognised Startups are eligible for the following benefits:

 Relaxation in public procurements norms under Labour & Environment laws

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