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3. DEFINITION OF START UP On 17 th February, 2016 the definition of STARTUPS was notified by DIPP to bring uniformity  Entity should not be older than 5 years  Turnover in any FY is less than INR 25 Cr 3 Amita Desai & Co, Company Secretaries

4. Definition Conti The Business of Start Up must be  Innovative  For development, deployment or commercialization of new products,  And the processes or services is driven by technology or intellectual property 4 Amita Desai & Co, Company Secretaries

5. EASE OF DOING BUSINESS FOR START UP 5 Amita Desai & Co, Company Secretaries

6. FUNDING INCENTIVES  Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 crore.  In order to provide funding support to Startups, Government will set up a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a period 4 years (i.e. INR 2,500 crore per year).  The Fund will be in the nature of Fund of Funds, which means that it will not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds. 6 Amita Desai & Co, Company Secretaries

7. FUNDING INCENTIVES  Credit Guarantee Fund,  Capital gain exemption to Investor for their investment into startups,  Income tax exemption for startups for three years, and tax exemption for investments above fair market value. 7 Amita Desai & Co, Company Secretaries

8. SIMPLIFICATION AND HANDHOLDING  A self-certification regime for labour and environmental laws (not other laws);  A Startup India Hub is set up by govt  A mobile app and portal for applications for approval is set up; 8 Amita Desai & Co, Company Secretaries

9. SIMPLIFICATION AND HANDHOLDING  Legal support and fast tracking of patent applications at lower, subsidised costs;  Relaxed norms for startups to be eligible for public procurement contracts bidding and tender can be filled with (now out past track of experience ); and  Faster exits for startups ( to switchover with dynamic changes in business or have easy exit to avoid cost of compliances ). 9 Amita Desai & Co, Company Secretaries

10. RELAXATION ANNOUNCED BY RBI  Enabling start-up enterprises, irrespective of the sector in which they are engaged, to receive foreign venture capital investment and also explicitly enabling transfer of shares from Foreign Venture Capital Investors to other residents or non-residents;  Enabling online submission of A2 forms for outward remittances on the basis of the form alone or with document(s) upload/submission, depending on the nature of remittance; and 10 Amita Desai & Co, Company Secretaries

11. RELAXATION UNDER FEMA  Permitting start-up enterprises to access rupee loans under External Commercial Borrowing (ECB) framework with relaxations in respect of eligible lenders, etc.;  Issuance of innovative FDI instruments like convertible notes by start-up enterprises; and  Streamlining of overseas investment operations for the start-up enterprises. 11 Amita Desai & Co, Company Secretaries

12. THINKING of IPO by Startups 12 Amita Desai & Co, Company Secretaries

13. SEBI NORMS 3 Year Profiability Only 10% Retail Investor participation Proceeds to be Used only for Tangible Assets 13 Amita Desai & Co, Company Secretaries

14. ITP-A STEP FORWORD Institutional Trading Platform (ITP) will enable significant number of angel investors and venture capitalists to explore the avenue of having their enterprises listed on this platform and seek a potentially easier exit. SEBI is making investing in India a lot more attractive with alternate fund raising methods like ITP. 14 Amita Desai & Co, Company Secretaries

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