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 or until notified, whichever is earlier.
- Industries & Commerce department has been appointed as the nodal department to implement the Nagaland Startup Policy 2019.
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
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 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.
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.