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:
- The date of its incorporation / registration is not prior to 7 years. In case of Biotechnology Startups incorporation/registration should not be prior to 10 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 startup applicant can reapply for startup recognition/ financial assistance one more time after a gap of 3 months from the date of communication of rejection.
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 (Rs.22,000/-, if the startup Founder (s)/Co-Founder (s) are Women or transgender or from Social Categories such as SC/ST/SEBC/PH. In such a case, Woman or transgender or SC/ST/SEBC/PH should have at least 50% equity in the startup entity.), 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 assistanceup to Rs. 15 lakh (Upto Rs.16 lakhs, if the startup Founder (s)/Co-Founder (s) is Woman or transgender or from Social Categories such as SC/ST/SEBC/PH. In such a case, Woman or transgender or SC/ST/SEBC/PH should have at least 50% equity in the startup entity.), 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. 2.5 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.
Financial Support for event Participation
- financial support to state recognized Startups for participating in the reputed national and international events, where they are representing the state.
- The support may include economy class air fare or 3 tier AC train fare for travel & free space in the stall, if set up by State Government.
Subsidised Incubation
- Recognised startups may avail subsidy benefit to the extent of 50% of monthly rental of the incubation space (subject to a maximum of Rs. 5000) for a period of maximum one year, if getting incubated at any of the incubators recognised by the Startup Odisha Initiative.
- The monthly allowance shall be Rs.22,000/-, if the startup Founder (s)/Co-Founder (s) are Women or transgender or from Social Categories such as SC/ST/SEBC/PH. In such a case, Woman or transgender or SC/ST/SEBC/PH should have at least 50% equity in the startup entity.
- Up-to Rs.16 lakhs towards product development and marketing/publicity assistance, if the startup Founder (s)/Co-Founder (s) is Woman or transgender or from Social Categories such as SC/ST/SEBC/PH. In such a case, Woman or transgender or SC/ST/SEBC/PH should have at least 50% equity in the startup entity.
- 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 utilization 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
- One-Time Capital Grant of 50% of the capital cost (excluding the cost of building) up to a maximum of Rs.1 crore, which may be given to an approved incubator to set up or scale up incubation facility
- In case, a university recognised under the Central/ State Act is able to raise funding for development of its incubation infrastructure, the Startup Council may consider providing a matching grant subject to an upper limit of Rs.5 crore on case-to-case basis. Such grant from the government shall only be used for development of incubation infrastructure including purchase of equipment for the incubation facility
- Reimbursement of Utility Expenseof Rs.1 lakh per year for a period of 3 years, which may be provided to an approved incubator for providing free internet, free electricity and free mentoring services to the incubatees. This benefit will not be available to virtual incubators
- Performance capital grant of Rs.5 lakhs, which may be given to an approved incubator for its each successful Startup incubated at least for a minimum period of 3 months
- Existing / Aspiring incubator may register by filling Incubator Registration Form with Startup Odisha initiative
- Startup Secretariat will collate all such applications and will present them with its recommendation to the Task Force for final consideration and approval
- Task force will consider these applications once in a month and decide
- Result will be published online and also emailed to the concerned Incubator
- An approved incubator may apply online for monetary benefit as applicable, with Startup Odisha initiative
- Incubator shall provide proof of capital investment made as ‘own contribution’ for availing one-time capital grant
- In case a university is able to raise funding for development of its incubation facility, proof of such funding shall be provided for availing the matching grant
- Startup Secretariat will collate all such applications, undertake due diligence of such applications and requisite documents and will present them with its recommendation to the Task Force / Startup Council for final consideration and approval. Result will be published online and also emailed to the concerned Incubator
- Once approved by the Task Force / Startup Council, the existing / aspiring incubator will receive the monetary benefit directly in its bank account
One-Time Capital Grant:
- Aspiring / Existing incubators established in a University / a reputed academic institution/Centre of Excellence such as IIT, IIM, NISER, IISER etc. will be eligible for one time grant of 50% of capital cost (excluding the cost of building) up to a maximum of Rs. 1.0 crore to set up / scale up an Incubator Facility
- However, Aspiring / Existing incubator should dedicate a minimum of 5,000 sq. feet of carpet area to the incubatees
- In case, a university recognised under the Central/State Act is able to raise funding for development of its incubation infrastructure, the Startup Council may consider providing a matching grant subject to an upper limit of Rs.5 crore on case-to-case basis
- Such grant from the govt. shall only be used for development of incubator infrastructure including purchase of equipment for the incubation facility
Reimbursement of utility Expenses:
- Applying body should be an approved Incubator
- Applicable only for an incubator having physical infrastructure in place
- Applicable only if incubator is providing free internet, free electricity and free mentoring services to the incubatees
Performance capital grant
- Applying body should be an existing approved Incubator
- Applicable, only if the successful startup is incubated for at least three months at the approved incubator
One-Time Capital Grant:
- The approved aspiring/ existing incubator will submit online application for Monetary Grant to the Startup Secretariat and upload requisite documents for due diligence
- The grant may be disbursed in a phased manner as per the budget/ utilisation plan submitted by the incubator and approved by the Startup Council
- The grant may be disbursed in proportion to the funds brought in by the approved incubator, as mentioned in their budget plan and approved by the Startup Council
Reimbursement of Utility Expense:
- One-time payment of utility expenses limiting to Rs. 1 lakh per year for a maximum period of 3 years may be made directly to the approved existing incubator in its registered bank account
- The incubator must submit bills for the expenses while availing the grant and submit utilization certificate within 3 months of the release of the grant
Performance capital grant
- One-time payment may be made directly to the approved incubator in its registered bank account
- The approved incubator will submit a list of the successful incubatees incubated at least for a period of three months
In order to avail the benefits announced in the Startup Odisha initiative, an entity would be required to be recognised as a Startup. To this effect, it would be required to submit an application online along with a note on innovation. All such registering entities application’s need to be carefully reviewed by an expert committee hosted under the Nodal Agency. As per the policy “Nodal Agency shall mean reputed Government as well as other institutions/ organizations as approved by the Startup Council as Nodal Agencies for certifying Startups.”
To review
- Applications of Startups for their recognition and
- The merit of the Startup applications for monetary grants.
Nodal Agency will be paid fee for review of registration & all other assistance as follows:
- Startup Recognition: One-time fee of Rs. 1,500 per application
- Monetary Grant Application: One-time fee of Rs. 5,000 per application, which shall also include the periodic review of startups’ performance.
The bill for the fee payable to the nodal agency will be auto generated by the system on a monthly basis and will be paid after due diligence by the Startup Secretariat directly in the Bank A/c of the Nodal Agency.
Selection of Nodal Agency will be on invitation basis only with the approval of Startup Council. The selected Nodal Agency will however have to fill up simple details
*The forms for claiming monetary benefits will be visible to recognized incubator’s on their Startup Odisha Dashboard post recognition
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