Punjab's Vision for Startups: Driving Growth & Entrepreneurship

Punjab is a land that stirs strong emotions and associations. It is widely known for its mouthwatering cuisine, boasting a delightful array of dishes like Sarson ka Saag, Makke Di Roti, Chole Bhature, Lassi, Paratha, Pinni, and more. Just the mention of Punjab conjures up vibrant images of the Golden Temple, the Wagah Border, and the vast green fields that define the region. The state has played a crucial part in achieving self-sufficiency in food production for the country. However, Punjab is now expanding its horizons and nurturing the startup ecosystem to further drive the Indian economy forward.

Punjab is refrred to as the ‘Food Bowl of India’ and that is evident in the fact that the state has 63 startups recognized by DPIIT working in the food processing sector while 43 startups are working in Agri-Tech. 

Punjab houses 1062 DIPP Recognized Startups out of which 537 startups are led by Women in the state. 

What is the Startup Policy of Punjab? 

So far, the government of Punjab does not have a dedicated startup policy but various policy measures including incentives for startups are enumerated in the state's Industrial and Business Development Policy-2017.  

Mr Deepinder Dhillon, the Joint Director of the Startup Punjab Cell, told TICE News that there will be no separate and dedicated startup policy for Punjab. As earlier, the startup policy will be included in the Industrial and Business Development Policy 2022. 

What is the Industrial and Business Development Policy of Punjab?

The Government of Punjab initiated the Industrial and Business Development Policy in 2017 with the aim of promoting industrial growth and nurturing the startup ecosystem within the state. This initiative seeks to establish a collaborative approach between central government schemes and state-level programs to encourage innovation and entrepreneurship. The Startup and Entrepreneurship Development Policy envisions Punjab as a leading global hub for startups and innovation, driving economic growth and creating extensive entrepreneurial and job opportunities in the state. 

What is the one-stop destination for startups in Punjab to get information? 

The Start-up Punjab portal was launched on January 16, 2018 for startups to connect and collaborate online with all elements of the state. The Portal contains all important links/information about the facilitation and incentives offered by the state.

What are the criteria to be Recognized as a Startup in Punjab?

• The entity must be incorporated or registered in India and classified as a Private Limited Company (as defined in the Companies Act, 2013), a Partnership Firm (registered under Section 59 of the Partnership Act, 1932), or a Limited Liability Partnership (under the Limited Liability Partnership Act, 2008). 
• The entity must have been registered or incorporated within the last ten years. 
• The annual turnover of the entity should not exceed INR 100 crore in any preceding financial year. 
• Additionally, the entity should be engaged in innovation, development, and improvement of products, processes, or services. It can also be a scalable business model with a high potential for employment generation or wealth creation. 
• It's important to note that the entity should not be formed by splitting up or reconstructing an existing business. 
• The startup must either be incubated in Punjab or have operations in the state.

How to register as a startup in Punjab? 

1. Create your login by clicking here
2. Go to the Startup tab on your homepage 
3. Fill Common Application Form and further fill up the Registration Forms

 Important Links to help register:

•  Investor's Guide for login creation & to fill up forms 
• Startup User Manual with Pictorial guide for login creation & to fill up forms 

What are the Documents needed to register as a Startup in Punjab? 

• Applicant's Aadhaar Card, Photograph, Signatures & Authorization Letter -contact details of Authorized Person on company's letterhead. 
• Company/Firm's PAN Card, Certificate of Incorporation, GST (Optional), Udyog Aadhar Card (Optional), Bank Account Number, Proof of Innovation, and Proof for Number of Shares. 

What is the helpline number for startups in Punjab? 

 For Registration related queries, kindly contact: 0172-2776071 or 0172-5256407

What are the Incentives for Startups under Punjab's Startup Policy? 

Interest Subsidy: Eligible startups will receive an interest subsidy of 8% per annum for a period of 5 years on the rate of interest paid on loans obtained from scheduled banks/financial institutions. The maximum limit for the subsidy is INR 5 lakh per annum. 

Lease Rental Subsidy: Startup units established in the state and operating from Incubators/IT Parks/Industrial Clusters or any other notified Industrial Park will be eligible for reimbursement of 25% of lease rental subsidy. The subsidy is applicable for a period of 1 year, with a ceiling of INR 3 lakh per annum. 

Seed Funding: Startups can receive a Seed Grant of up to INR 3 lakh for activities such as idea validation, prototype development, travel costs, field/market research, skill training, marketing, and initial setup. The funding will be routed through the concerned Nodal Agency. 

Scale-up Funding: The government will facilitate Venture Capital for Punjab-based startups registered with Startup Punjab or DPIIT (Department for Promotion of Industry and Internal Trade), Government of India. The startups will be connected to Punjab Innovation Fund, which will have a dedicated fund of Rs 150 crore. 

Reimbursement from Stamp Duty: Punjab-based startups registered with Startup Punjab will receive 100% reimbursement from Stamp Duty on the registration of MoA (Memorandum of Association) / AoA (Articles of Association). 

The Government of Punjab is committed to facilitating funding support for startups by leveraging various Central Government schemes. 

Credit Guarantee Fund for Startups: The government will assist startups in accessing funding through the Credit Guarantee Fund, which provides guarantees for loans taken by startups from financial institutions. 

"Fund of Funds" with a Corpus of INR 10,000 Crores: The government aims to establish a dedicated "Fund of Funds" with a corpus of INR 10,000 Crores. This fund will provide financial support to startups by investing in eligible venture capital funds. 

Tax Exemptions on Startups for 3 Years: Startups registered under the relevant provisions will be eligible for tax exemptions for a period of 3 years. This exemption will provide relief from certain taxes and help startups retain more capital for business growth. 

Tax Exemptions on Capital Gains: The government will offer tax exemptions on capital gains earned from the sale of residential properties if the proceeds are invested in eligible startups. This incentive encourages investment in startups and promotes their growth. 

Tax Exemptions on Investments Above Fair Market Value: To encourage funding in startups, the government will provide tax exemptions on investments made above the fair market value. This allows startups to attract investments at higher valuations without tax implications. 

What is the Startup Punjab Hub? 

Startup Punjab hub, called Neuron, was launched on 30 September 2019 by State Government in partnership with STPI, ISB Mohali, and Punjab Technical University. Punjab Government is supporting this initiative by providing INR 10 Crores grant-in-aid.

The State of Punjab has established the Startup Punjab Hub as a centralized platform to facilitate the startup ecosystem. The hub, in collaboration with the Startup India Hub, aims to provide a single point of contact for startups and facilitate knowledge exchange and access to funding. Startup Punjab Hub will serve as a critical stakeholder in the emerging ecosystem and will actively engage with the Central and State Governments, Indian and Foreign Venture Capitalists (VCs), banks, incubators, angel networks, legal partners, consultants, Research and Development (R&D) institutions, and universities. 

The primary objective of the hub is to support startups throughout their entire lifecycle. This includes assisting with crucial aspects such as securing financing, providing advisory services for business structuring, conducting feasibility testing, facilitating technology commercialization, enhancing marketing skills, and conducting management evaluations. 

The hub will also organize mentorship programs in collaboration with incubation centers, governmental organizations, educational institutions, and private organizations that share a common goal of fostering innovation. Through these initiatives, Startup Punjab Hub aims to create an enabling environment for startups and promote their growth and success. 

Which are the incubation centers for startups in Punjab? 

• IIT Ropar - Technology Business 7 Incubator Foundation (IITR-TBIF), Ropar Punjab
• Agri-Food Bioprocessing Incubator, Mohali, Punjab
• Technology Business Incubator - IISER Mohali, Punjab
• Punjab Agricultural University, Ludhiana, Punjab Punjab Agri-Business
• Punjab Biotechnology Incubator (PBTI), Mohali, Punjab
• Incubation Centre I. K. Gujral Punjab Technical University (IKGPTU), Kapurthala, Punjab
• Atal Community Innovation Centre (ACIC) RISE Chandigarh Engineering College (CGC), Landran, Mohali Punjab
• Atal Incubation Centre, VT Indian School of Business (AIC ISB), Mohali Punjab
• Science and Technology Entrepreneurship Park, Patiala, Punjab
• Chitkara Innovation Incubator Foundation (CIIF), Rajpura Punjab
• Innovation Studio, Department of Entrepreneurship, Lovely Professional University, Phagwara, Punjab
• Baba Farid School of Entrepreneurship (BFSoE), Bathinda, Punjab
• Starthub Nation, Mohali, Punjab
• Startup Accelerator Chamber of Commerce (SACC), Mohali, Punjab

What is Punjab Innovation Mission? 

To give further impetus to the start-up ecosystem in the state, Government of Punjab established the privately-led and government-backed Punjab Innovation Mission. 

The objective of the Innovation Punjab Mission is to develop a vibrant ecosystem for entrepreneurship by leveraging capital, policy, and technology through collaboration with investors, industry, government, academia, and startups and facilitating collaboration amongst the various incubators and accelerators in Punjab. Punjab Innovation Mission will run a sector agnostic Accelerator and would focus on some thrust sectors like Agri tech, Food Processing, Healthcare, Pharma, BioTechnology, Lifesciences, IT/ITES, Gaming & Sports, Arts & Entertainment, etc. 

Punjab Innovation Mission shall also set up a Punjab Innovation Fund of Rs. 150 crores to invest in early-stage Startups. 

What is the Punjab government's Entrepreneurship Scheme for students? 

The government of Punjab has introduced the Punjab Student Entrepreneurship Scheme for the students of the State Technical Universities, Punjab State Board of Technical Education & Industrial Training, and universities& colleges falling under the purview of Dept. of Technical Education and Dept. of Higher Education & Languages. Under this scheme, all universities, colleges, and polytechnics that have incubators on campus will provide 20% attendance relaxation and 4% grace marks in academic courses for students who pursue entrepreneurship and innovation during their studies.

How many startups are registered under Startup Punjab? 

The numbers of startups registered under  Startup Punjab is increasing every day and the current no of startups registered under it amounts to 86. 

The number of startups registered under Startup India from Punjab is 362. 

Which are some of the startups registered in Punjab? 

Ygeiax Sciences Pvtl, Augniscient Private Limited, Rideboom India Pvt Ltd, Disruption Technologies Pvt Ltd, Aamztofaamz Technosolutions Pvt. Ltd, Black Eye Technologies Pvt. Ltd, Parshuram Bio Agrotech Pvt Ltd, BSI Green Re Volte Services LLP, Endoenergy Systems Private Limited, Focal Skill Development Private Limited, etc. 

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