Nagaland Startup Policy 2019 tabled in the State Assembly on 26 February 2019 by the Chief Minister of Nagaland.
- Nagaland Startup Policy aim to accelerate and promote local entrepreneurs in the state.
- The policy is in line with the Startup India scheme, will be effective for a period of five years from the date of its notification.
- Industries & Commerce department has been appointed as the nodal department to implement the Nagaland Startup Policy 2019.
Definitions under the Nagaland Startup Policy 2019
Who is an eligible Start-up under the policy?
a. The entity should not be more than seven (7) years old from the date of its incorporation/registration.
In the case of entity from biotech sector, the date of incorporation/registration should not be prior to ten years.
b. Its annual turnover does not exceed INR 25 crore, for any preceding financial year.
c. It is working towards innovation, development, deployment or commercialisation of products, processes or services driven by technology or intellectual property; an entity that develops a business model based on some innovation and makes it scalable for achieving commercial success.
d. It is registered in Nagaland and the Founder/Co-Founder of the entity should be an Indigenous inhabitant of Nagaland and employs at least 60% of its total qualified workforce from local population of Nagaland.
e. Such an entity should not be an extension of an existing family business; or formed by splitting up or reconstruction of a business already in existence.
Entity means a private limited company (as defined in the Company Act, 2013), or a registered partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2002).
Incubator is any organization designed to accelerate the growth and success of entrepreneurial ventures.
- The incubator will provide critical facilities like plug-n-play working space, conference rooms, video conferencing and broadband connectivity along with research and testing labs.
- Provide other services like business and administrative assistance, financial counselling, accounting assistance, legal and regulatory guidance, patent registration, etc.
- Organize various capacity building, skilling and training programs.
- Provide access to mentors and investors.
Policy period: The Nagaland Start-Up Policy, 2019 shall be effective for a period of 5 years from the date of its
Notification or till such time the State Government may deem fit or proper.
Some key highlights of the policy:
- Facilitate the growth of at least 500 startups in the next five years
- Establish innovative “Made in Nagaland” products and services
- Establish entrepreneurship incubators, 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
- Establish 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 – 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.
- Entrepreneurship cells in schools
- 25% of fund to be dedicated to promote startups by women entrepreneurs in the state
Incentives under the Nagaland Startup Policy 2019
GST Reimbursement:
Annual reimbursement of state GST paid in sales of goods for a period of 3 years up to a maximum of Rs. 5 lakhs per startup per year.
Stamp Duty Reimbursement
100% reimbursement of stamp duty/registration fee/conversion fee on sale/lease deeds for first transaction.
Digital Upgradation Subsidy
Digital upgradation subsidy of 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
50% rental reimbursement for a maximum period of two years subject to a ceiling of Rs. 2 lakhs. It may include any rent being paid to an incubator/co-working space.
Power Subsidy
Power subsidy at 50% subject to a limit of Rs. 10 lakhs per annum for a period of five years.
Reimbursement of patent filing cost
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 filling domestic patent and upto Rs. 5 lakhs 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
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.
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 elements 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.
NAGALAND INNOVATION SOCIETY
Primary Functions:
- Responsible for the monitoring, evaluation and implementation of the Start-up Policy of Nagaland, 2019.
- May issue directive/suggestions/amendment for effective implementation of the policy.
Members of NAGALAND INNOVATION SOCIETY:
- Chairman: Principal Secretary/Commissioner & Secretary, Industries & Commerce
- Member Secretary: Director of Industries & Commerce
- Members include:
- Finance Commissioner / Representative
- Agriculture Production Commissioner / Representative
- Principal Secretary/Commissioner & Secretary, Labour &
- Employment Department / Representative
- Principal Secretary/Commissioner & Secretary, Science & Technology Department/ Representative
- Principal Secretary/Commissioner & Secretary, IT & C
- Department/ Representative
- Joint Secretary, IDAN
- One representative from WENN
- One representative from Women Resource Department
- One representative from State Commission for People with
- Disabilities(SCPD)
- Two representative from Investors/ Incubators
STARTUP COUNCIL
Primary Functions:
- Approve the set of guidelines for the implementation and monitor the implementation of the policy.
- Approve the fiscal and non- fiscal incentives under the policy.
Members of the Startup Council includes:
- Chairman: Chief Minister
- Member, Convenor & Secretary: Commissioner & Secretary, Industries & Commerce Department
- Other Members includes:
- Hon’ble Minister/Advisor in charge (Industries & Commerce)
- Chief Secretary
- Development Commissioner
- Commissioner of Taxes
- Chairman, IDAN
- Managing Director, NIDC
- One representative from Bank/Financial Institution – Nominated by the Chairman
- One representative from Investor/ Incubator – nominated by the Chairman
- One representative from Academic Institutions – nominated by the Chairman
- Director, Industries & Commerce
Selection of start-ups:
• Online application through the Startup Nagaland portal
• First level screening by the Nagaland Innovation Society
• Selected Startups have to pitch their innovative business idea in front of a panel in the Startup Council who will select the Startup based on their innovation, business plan, feasibility, scalability and budget, etc.
References:
- Link to – Nagaland Startup Policy Document (PDF)
- http://morungexpress.com/nagaland-startup-policy-2019-aims-for-startup-leadership-in-the-region/
- http://www.nagalandpost.com/cm-tables-nagaland-startup-policy-2019/191214.html
