Startup Incentives

Startup Incentives

Odisha: The land of opportunities

The registration by a startup entity for recognition can be done online by simply filling a Startup Registration Form and giving self- certification for the following set of documents:
  • 1. Incorporation certificate of the entity
    This would be verified from the MCA-21 portal.
  • 2. Self-certification for Startup definition:
    • Date of incorporation / registration of entity is not prior to 5 years
    • The entity’s annual turnover does not exceed Rs.25 crore, for any preceding financial year
    • If not registered in Odisha, the entity employs at least 50% of its total qualified workforce in Odisha.
    • The entity is not an extension of the existing family business; or formed by splitting up or reconstruction of a business already in existence.
  • 3. Self-Certification for Proof of innovation:
    • DIPP Startup India recognition certificate; OR
    • Startup has a patent filed in the entity name and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted; OR
    • Sanction Letter of funding / grant to the entity by Government of India or any State Government as part of any specified scheme to promote innovation; OR
    • Letter of funding of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business; OR
    • If an entity does not possess any of the above mentioned four documents, it may submit a one page write-up / note explaining the innovative nature of its product. The applicant entity is encouraged to share its business plan along with the note on innovation
  • The startup entity will have to submit its application online in the Startup Registration Form
  • The Nodal Agency on satisfaction will certify the registration proposal online within 2 weeks, which they will forward to the Startup Secretariat. However, Nodal Institute may schedule a call or a meeting with the startup entity, if it deems necessary, within the first week of receipt of such application
  • Startup Secretariat will collate all such certified applications and will present them with its recommendation to the Task Force for consideration and final approval
  • Result will be published online and also emailed to the concerned Startup entity
A ’recognized Startup entity’ may apply for any of the following monetary benefits available under the Startup Odisha initiative:
  • Monthly allowance of Rs.20,000, which may be provided to a 'recognized Startup entity’ for a period of one year, if it fulfills any of the following conditions:
    • Startup has got total equity financing by SEBI registered AIF Category 1 & 2 fund or Angel Networks in the range of (at least) Rs. 5 Lakh to Rs. 1.00 crore; or
    • Startup has a patent filed in the entity name and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted; or
    • Sanction letter of funding / grant to the entity by Government of India or any State Government; or
    • The startup has got a revenue run rate of Rs. 50 thousand to Rs. 10 Lakh per month over the last three months at least.
  • Product Development and Marketing/ Publicity assistance up to Rs. 15 lakh, which may be given to a 'recognized' Startup entity for introduction of innovated product in the market , if it fulfills any of the following conditions :
    • Startup has got total equity financing by SEBI registered AIF Category 1 & 2 fund or Angel Networks of at least Rs. 25 Lakh; or
    • Sanction Letter of funding / grant to the entity by Government of India or any State Government of at least Rs. 5 Lakh; or
    • The startup has got a revenue run rate of Rs. 10 Lakh per month over last six months at least.
  • Need based assistance, which may be considered on case to case basis to a ‘recognized Startup entity’ towards cost of raw material / components and other related equipments required for the innovative process for new product development / existing product improvement.
    However, this assistance will be provided only in case(s) where innovation is dependent on specific raw material / equipment and subject to approval by the Startup Council.
  • Once recognized, a startup entity can apply online for the monetary benefit with Startup Odisha initiative by filling a standard form online
  • The Nodal Agency will review the monetary application of the startup entity and will share its review online with the Startup Secretariat within next 2 weeks of receipt of such application. However, Nodal Agency may schedule a call or a meeting with the startup entity, if it deems necessary, within the first week of receipt of such application.
  • Startup Secretariat will collate all such applications and undertake due diligence of the applications and requisite documents and present them with its recommendation to the Task Force for consideration and final approval within next 2 weeks of receipt of such application. Result will be published online and also emailed to the concerned Startup entity
  • Once approved by the Task Force, Startup will receive the monetary benefit(s) directly in the entity's bank account.
  • Monthly Allowance:
    • Monthly payment for the first three months may be made directly to a recognized eligible startup entity in its registered bank account on a monthly basis
    • Three months onwards, payment may be released based on the utilization report submitted by the Startup online to the Nodal agency within 15 days of completion of the first three months
    • Startup entity shall submit a utilization report highlighting the utilization of the monthly allowance in the first three months and enclose/upload supporting documents and bills, where applicable
    • Payment of the monthly allowance will be made for a period of one year only
    • Startup entity can avail this benefit only once
    • Startup entity shall submit a final utilization certificate highlighting utilization of the monthly allowance along with supporting documents and bills within one month of the completion of 1 year
  • Product Development and Marketing / Publicity Assistance:
    • Startup will have to submit a self-contained product development plan with justification, online
    • Subject to approval, 50% of the payment to a recognized startup entity may be made in advance and the remaining 50% will be made to its registered bank account upon utilization of the advance payment on the basis of submission of utilization certificate along with bills
    • The Startup entity must submit utilization certificate along with bills for the advance payment within three months of receiving the grant
    • The Startup entity must submit final utilization certificate along with bills for the entire amount within six months of release of grant
  • Need based Assistance:
    • Startup entity will have to submit a self-contained plan with justification online for the need and the manner of utilisation of the assistance
    • Subject to approval, payment may be made directly to a recognized startup in its registered bank account
    • The Startup entity must submit utilization certificate along with bills for all the expenses within three months of receiving the grant
*The forms for claiming monetary benefits will be visible to recognized Startup’s on their Startup Odisha Dashboard post recognition