Credit Guarantee Fund (CGF) for encouraging start-up companies

Credit Guarantee Fund

The Government is planning to set up a Credit Guarantee Fund (CGF) for encouraging start-up companies with a view to providing funding facilities in the country. The scheme has yet to be made operational.

Incentives being provided to Startups under Startup India initiative are:

  • Self-Certification under 6 Labour Laws & 3 Environmental Laws
  • Relaxations in Public Procurement Norms
  • Faster exit under the Bankruptcy Code
  • Rebates on Patent & Trademark filing fees, support from facilitators and expedited examination of Patent application
  • Income Tax exemption
  • Exemption from Income Tax on investments received above fair market value
  • Funding support under the Fund of Funds for Startups
  • Guidance and facilitation support from Startup India Hub

Department of Industrial Policy and Promotion hosted Startup India Global Venture Capital Summit 2018 on 7th December 2018 in Goa.

It was a gathering of global fund managers, limited partners, officials from the Government of India and innovative startups. The dialogue focused on the huge return-generating potential of India’s vast and diverse market monetized through cutting-edge technologies supported by investor-friendly regulations. The objectives of the Summit were:

  • Showcasing the opportunities in India by discussing and highlighting sectors that provide a wide array of investible opportunities
  • Increasing capital flow for Indian startups by showcasing high quality tech & non tech Indian startups to the global investor community
  • Fostering ease of doing business by Identifying and discussing issues raised by investor community

The event was attended by 30 Startups of which 27 were Indian Startups and 3 Startups were from the United States of America. The number of Indian and foreign Venture Capital funds that attended the summit is given below:

8,993 startups were recognised by Department of Industrial Policy and Promotion during the year 2018.

S. No. Country Unique Funds
1. India 45
2. Japan 12
3. USA 3
4. China 2
5. Hong Kong 2
6. Korea 1
7. Russia 1
8. Singapore 1
9. Sri Lanka 1

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha today.

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