With an aim to accelerate and promote local entrepreneurs in the state, Nagaland chief minister Neiphiu Rio tabled the ‘Nagaland Start up Policy 2019’ in the Assembly on Tuesday. The policy, which is in line with the Startup India scheme, will be effective for a period of five years from the date of its notification or until notified, whichever is earlier.
Industries & Commerce department has been appointed as the nodal department to implement the start-up policy. Nagaland start-up policy also aims to establish Nagaland as a model start-up leader in the region, by creating a culture of entrepreneurship that nurtures creative and innovative youth, allowing them to build successful start-up companies, become job creators and contribute towards building a healthy and sustainable economy.
Some of the objectives under the policy will be to facilitate growth of at least 500 startups in the next five years, with a focus on establishing innovative “Made in Nagaland” products and services. To establish a world class state incubator, in partnership with global leaders on a PPP mode, which will nurture, guide and support existing and aspiring start-ups to become successful business ventures.
Under funding models & capital availability for entrepreneurs, the State government will establish the Nagaland Investor Network, to provide a platform for key ecosystem stakeholders including venture capitalists and impact investors, international donor and funding agencies, private sector partners, State governments, government of India and UN to invest in and mentor startups in the State.
Nagaland Innovation Fund will be set up in partnership with leading National and international investors, in which the state government will actively invest with matching capital in select Venture Capital investors (VCs) with significant potential. These investors will be selected based on criteria, through an exhaustive process that will be rolled out. Further, fund will flow to the VC based on the investments they make in startups that match selection criteria.
GST reimbursement: Startups selected under this policy shall be eligible for annual reimbursement of state GST paid in sales of goods for a period of 3 years up to a maximum of Rs. 5 lakh per startup per year.
Stamp duty reimbursement: Startups selected under this policy shall be eligible for 100% reimbursement of Stamp Duty/Registration Fee/ Conversion Fee on sale/lease deeds for first transaction.
Digital upgradation subsidy: Startups selected under this policy shall be eligible for digital upgradation subsidy at 50% of capital expenditure for purchase of computers, smart phones, related hardware and software subjected to a ceiling of Rs. 5 lakh per startup.
Broadband connectivity reimbursement: Startups selected under this policy shall be eligible for 50% rental reimbursement for a maximum period of two years subject to a ceiling of Rs. 2 lakh. It may include any rent being paid to an incubator/co-working space.
Power subsidy: Startups selected under this policy shall be eligible for power subsidy @50% subject to a limit of Rs. 10 lakh per annum for a period of 5 years.
Reimbursement of patent filing cost: Startups selected under this policy shall be eligible for reimbursement up to 100% of the actual cost (including filing fees, attorney fees, search fees, maintenance fees) for patent filing with a maximum limit of Rs. 2 lakh for filing domestic patent and up to Rs. 5 lakh for filing international patent. This reimbursement shall be payable 50% after the patent is filed and the balance 50% after the patent has been granted.
Marketing and promotion assistance: Startups selected under this policy shall be eligible for reimbursement of 50% of the actual marketing and promotion costs (including travel costs) incurred by a Startup in listing fees for online and offline advertisements, in store promotions, publishing or digital marketing materials, trade show participation, market research, etc subject to maximum of Rs. 5 lakh per startup.
Regulation: The State Government will ease regulations for registrations and renewals with self-certification and deemed approval for recognized startups to avail Government licenses and services.
Encourage public procurement: The State Government will encourage participation of startups in public procurement by waiving off prior experience or turnover requirements so long as the product meets the desired specifications and encourage consortium of eligible companies with startups in bidding for State Government projects which will bring in the element of innovation and new ideas.
Startups selected under this policy shall be eligible for incentives/provisions under Nagaland Industrial and Investment Policy in force. However, the incentive for the same component cannot be claimed from more than one scheme.