The economy of a state is heavily reliant on creativity and entrepreneurship. The state of Punjab has a reputation for being a leader in terms of overall prosperity and development. Industry, agriculture, education, health, literature, sports, arts, and culture are only a few of the areas where the state has excelled. Punjab is endowed with world-class infrastructure, human resources, and enterprising and forward-thinking people who aspire to transform every possible opportunity into a booming success.

Furthermore, the State has designated start-up and entrepreneurship as critical pillars for economic development, job creation, productivity, and wealth creation. The government launched the Startup Punjab and Entrepreneurship Development Policy, based on the Government of India’s Startup Action Plan and Standup India scheme. As well as the Punjab Government’s Industrial and Business Development Policy 2017.

What are the Benefits of the Startup Punjab Scheme?
  • Eligible Startups will receive an annual interest subsidy of 8% on the rate of interest charged.
  • Loans obtained from scheduled banks/financial institutions for a period of 5 years, up to a maximum of INR 5 lakh per year.
  • For a period of one year, eligible Startup units developed in the State, operating from Incubators/IT Parks/Industrial Clusters or any other notified site, will be eligible for reimbursement. 25% of lease rental subsidy, subject to a cap of INR 3 lakh per annum.
  • A Seed Grant of up to INR 3 lakh per startup will be given. Concept validation, prototype creation, assistance with travel costs, field/ market research, skill training, marketing, and other initial start-up activities, among other things. Investors will channel seed funding for startups into state incubators.
What is the Eligibility for Startup Punjab Scheme? 
  • With the previous fiscal year’s annual turnover of not more than INR 25 crores. Working on product, method, service innovation, change, and growth, on whether it’s a scalable business model with a high potential for wealth creation or job creation.
  • The dissolution or reconstruction of an existing corporation cannot establish the entity, nor can the reconstitution or demerger of an existing operation generate it.
  • The corporation should not be a holding company or a subsidiary of an established company. However, A startup’s subsidiary will be an exception to this clause.
  • One must register it as a Private Limited Company as defined by the Companies Act, 2013. Otherwise, a registered Partnership Firm as defined by Section 59 of the Partnership Act of 1932, or a Limited Liability Partnership as defined by the Limited Liability Partnership Act of 2008 in India. It should not be earlier than 7 years, with a maximum of 10 years for Biotechnology Companies;
  • The Punjab Shops and Commercial Establishment Act of 1958 requires the entity/company to register in Punjab.
  • The company expects to hire at least half of its total skilled staff from Punjab, excluding contract workers.
What are the Documents Needed for Startup Punjab Yojana?
  • Passport-size photograph of the applicant
  • Academic qualifications of the applicant
  • Project Report/Business Plan
  • Birth Certificate
  • Voter ID/Ration Card
  • Caste Certificate
  • Proof of business address
  • The applicant must not be at fault in the Bank.

In the above list, business plan also known as project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. Therefore, a well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your project report.

How to apply for the Startup Punjab Scheme?

Visit the following website to register for the policy