ENA Sectors 2017-01-10 06:12:59 <p><strong>New Delhi, Jan 10 (KNN)</strong> The Commerce and Industry Minister, Smt. Nirmala Sitharaman, held a meeting with various incubators and accelerators to gather feedback, hear their concerns and address key challenges faced by them in the Start-up ecosystem.</p> <p>This is in continuation to her previous initiative to reach out to various stakeholders of the ecosystem.</p> <p>During the interaction on Monday, the stakeholders discussed various issues like Service tax exemption, umbrella recognition of incubators, fund requirement by start-ups etc.</p> <p>Service tax exemption is being currently provided to incubators duly recognized by Government. The stakeholders said it should be extended to other incubators as well.</p> <p>The concerns related to requirement of seed stage funding for Start-ups was highlighted.</p> <p>The stakeholders demanded that Incubators should be given grant by Government to help Startups at the initial stages. E.g. PRISM under DSIR which gives a grant of Rs. 2 lacs for startups at the seed funding stage is extremely helpful; a similar seed stage funding from 5-10 lacs for startups was proposed.</p> <p>The stakeholders also spoke about umbrella recognition of incubators, accelerators, co-working spaces and mentors as Startup builders</p> <p>The Start-ups registered with incubators need to get their valuation done which is a financial burden on them, pointed the participants urging that the Start-ups below a particular threshold may be exempted from the same.</p> <p>Further, the other points raised during the meeting were - Greater corporate engagement with incubators may be facilitated; Section 35(2AA) of Income Tax Act may be extended to incubators as well; A Central repository of all schemes and funds available under the Government for the benefit of start-ups should be created and more.</p> <p>Recognizing that the marketing and funding support to start-ups is critical, the attendees demanded a separate fund for incubators especially through CSR mandate for corporates.</p> <p>State Governments and municipal bodies may be requested to extend relaxed procurement norms to start-ups, they said.</p> <p>The current FCRA regulations prohibit charitable trusts to use the foreign funds received by them as investment in start-ups as such investments are treated as speculation, pointed the stakeholders.</p> <p>During the meeting it was pointed that a national survey can be undertaken to collate and address all challenges of start-ups on a common platform</p> <p>The Commerce and Industries Minister assured that the department will take the suggestions forward by engaging with the ministries concerned.</p> 16166 http://knnindia.co.in/news/newsdetails/sectors/sitharaman-interacts-with-incubators-and-accelerators-to-gather-feedback-address-challenges-faced 2017-01-10 06:12:59 knnindia.co.in