Introduction to Startup Himachal

Startup Himachal is a flagship initiative by the Government of Himachal Pradesh, launched as the "Chief Minister's Startup/Innovation Project/New Industries Scheme." Its core objective is to foster a vibrant startup ecosystem in the state, transforming the educated youth from job seekers into job creators.

The scheme aims to provide robust support to innovative projects and new industries by offering a comprehensive package of incentives, expert guidance, and access to a supportive network. It seeks to promote a culture of innovation, facilitate the establishment of incubation centers, and create a conducive environment for entrepreneurial ventures to thrive in Himachal Pradesh.

Startup Himachal is a testament to the state's commitment to economic growth driven by homegrown innovation.

Definition of a 'Startup' under Startup Himachal

For an entity to be recognized as a 'Startup' under the Startup Himachal scheme and avail its benefits, it must meet specific criteria:

• Type of Entity: It must be incorporated as a:
  • Private Limited Company (under the Companies Act, 2013)
  • Limited Liability Partnership (LLP) (under the LLP Act, 2008)
  • Registered Partnership Firm (under the Indian Partnership Act, 1932)
  • Proprietorship (for innovative projects).
• Age of Entity: The date of its incorporation/registration should not be more than **10 years**.
• Annual Turnover: Its annual turnover for any preceding financial year since incorporation/registration has not exceeded **₹100 Crore**.
• Original Entity: The entity must not have been formed by splitting up or reconstructing an already existing business.
• Innovation & Scalability: It must be working towards the innovation, development, or improvement of products, processes, or services, or be a scalable business model with a high potential for wealth creation or employment generation.
• Sector: Primarily focused on services and manufacturing sectors relating to specific focus areas defined in the scheme, which generally include technology-driven innovation in any sector, rural infrastructure, cleantech, agriculture, food processing, tourism, IT & ITeS, biotechnology, etc.

Adherence to these definitions is crucial for eligibility for scheme benefits.

Eligibility for Applicants/Innovative Projects

The scheme is designed to support individuals and groups with innovative ideas and defined 'Innovation Projects'.

• Any individual or group of individuals having an innovative idea/concept.
• All Startups/New Industries/Innovation Projects, as defined by the scheme, are eligible to avail applicable incentives.
• While a specific age criterion (e.g., 18-40 years) was mentioned in some earlier interpretations, the current emphasis is on the innovative nature and eligibility of the 'entity' as per the definition of a startup.
• The project/startup should be willing to set up its enterprise in Himachal Pradesh.

The scheme prioritizes genuine innovation and potential for impact within the state.

Key Incentives & Benefits under Startup Himachal

Startup Himachal offers a wide array of incentives to encourage and support entrepreneurs:

• Monthly Sustenance Allowance: ₹25,000 per month for a period of one year to innovative projects recommended by Host Institutions/Incubators and approved by the Empowered Committee.
• Seed Fund: Up to **₹50 Lakhs** under the HIMSUP Yojana (Himachal Startup Yojana) for product development and commercialization.
• Incubation Support: Access to state-empanelled incubators for mentoring, co-working space, access to labs, and other facilities. Incubators themselves receive grants for setup and recurring expenses.
• Concession in Stamp Duty: Reduced stamp duty (e.g., @3%) on conveyance deeds and lease deeds for startup units within Himachal Pradesh.
• Concessional Land Availability: Land in industrial areas (Category B and C) at concessional rates, often at 50% of the rates fixed by the Department of Industries.
• Patent Filing Cost Reimbursement: Up to ₹2 Lakhs for Indian patents and up to ₹10 Lakhs for foreign patents.
• Concession in PCB Fees: Reduced by 25% for 'Green Industry' and 10% for 'Orange Industry' for obtaining consent from the H.P. Pollution Control Board.
• Interest Subvention: A 5% interest subvention for loans up to ₹25 Lakhs for three years for investments up to ₹25 Lakhs, employing at least 5 persons in the Micro sector.
• No Inspections for 3 Years: Startups are exempted from inspections under certain labor laws for 3 years, provided they submit self-certified compliances.
• Self-Certification: Simplified compliance mechanism allowing self-certification under various labor laws.
• Ease in Public Procurement: Relaxation in eligibility criteria like Earnest Money Deposit (EMD), prior experience, and prior turnover for startups participating in government tenders. Preference may be given to HP-registered startups.
• Marketing Assistance: Financial assistance for marketing, including participation in exhibitions, workshops (up to ₹10 Lakhs in some cases).

These incentives are designed to reduce the financial burden and provide a supportive environment for startups.

Application Process for Startup Himachal

The application for Startup Himachal benefits, particularly for innovative projects and sustenance allowance, is primarily online through the dedicated portal. The process generally involves interaction with designated Host Institutions/Incubators.

Step-by-Step Application Guide:

1. Register on Startup Himachal Portal: Visit the official Startup Himachal portal (https://emerginghimachal.hp.gov.in/startup/) and register yourself as a 'Startup' or 'Innovator'.
2. Submit Your Idea/Application: Fill out the online application form with details about your innovative idea, business concept, team, and any other required information.
3. Initial Scrutiny: Your application will undergo initial scrutiny by the Department of Industries.
4. Recommendation by Host Institution/Incubator: The application will then be forwarded to an empanelled Host Institution (Incubator). You may need to approach an Incubation Centre with your proposal for their recommendation. The incubator will assess the innovation, viability, and scalability of your project.
5. Empowered Committee Approval: The project, if recommended by the Host Institution, will be put forth to the Empowered Committee of the scheme for consideration and final approval.
6. Disbursement of Sustenance Allowance: If approved, the sustenance allowance (if applicable) will be disbursed directly to the innovator/startup through the Host Institution after receiving monthly progress reports.
7. Availing Other Incentives: Once your idea is commercialized and your entity is formally recognized as a startup, you can apply for other applicable incentives (like seed funding, land concession, patent reimbursement) directly through the Industries Department's single window portal or the Startup Himachal portal.

The process is designed to be streamlined, with self-certified documents often accepted initially.

Important Contacts & Links

For further information and assistance regarding the Startup Himachal scheme:

• Official Startup Himachal Portal: https://emerginghimachal.hp.gov.in/startup/ (Primary portal for registration, incentives, and information)
• Department of Industries, Himachal Pradesh: (Nodal Agency for the scheme)
  • Address: Majitha House, Near H.P. Secretariat Chhota Shimla, Shimla-2, Himachal Pradesh.
  • Email: startuphimachal@gmail.com
  • Phone: +91 177-2622735
• Startup Himachal Helpdesk: +91 177-2659735
• Startup India Portal: https://www.startupindia.gov.in/ (For central government recognition and benefits)

Always refer to the official portals for the most up-to-date information and guidelines.