Govt to set up section 8 firm for startups to strengthen ecosystem: Goyal

Commerce and Industry Minister Piyush Goyal on Monday said a decision has been taken to set up a not-for-profit company under section 8 of the Companies Act to include all initiatives and bodies of Startup India under one roof.

Goyal said the company can be industry-led, similar to Invest India, which can manage its affairs.

At present, Startup India is housed in Invest India, which is a national body to promote investments.

"We will support it as a catalyst so that policy-wise, it is on the right track. It will have an independent board and organisation structure and we would do a little oversight. The National Startup Advisory Council can also be a part of it," Goyal said.

 

The Startup India initiative was launched on January 16, 2016. Under this, several programmes have been rolled out to support entrepreneurs, build a robust startup ecosystem and transform India into a country of job creators instead of job seekers.

These programmes are managed by a dedicated Startup India Team, which reports to the Department for Promotion of Industry and Internal Trade (DPIIT). The initiatives are implemented through the Startup India action plan, under which fiscal and other incentives are provided.

Launching a platform for the sector, Goyal said, "I have taken a decision just a few days back, I think the process has kick-started. Please finalise starting a section 8 company so that the national startup advisory council also comes within the new startup company".

"Today, Startup India is housed in Invest India. I think, now startup India has become such a powerful ecosystem by itself that it should have a house of its own."

He added that SIDBI can also be actively involved in this company.

"How do we recognise our unicorns? Why not have a system where we will be issuing shares also in that section 8 company to everybody who became a unicorn? We have to find ways to encourage people to support that," he added.

He suggested the startups own this company and manage it professionally.

"And then, that company can start owning these assets of technology also, that way it will be nimble, and industry lead...So, you can rightfully see that trade secrets are not let out," Goyal said.