Haryana

OVERVIEW

Policy Name	Haryana Entrepreneur & Startup Policy-2017
Policy Document	Download here
Website	Startup Haryana
Nodal Agency	Department of Information Technology Electronics & Communication, Haryana
Office Address	Startup Haryana, Department of Information Technology Electronics & Communication, Haryana SCO 109-110, Sector 17B, Chandigarh (India)
Contact Details	Phone Number: 18001806222 Email: helpdeskstartupharyana@gmail.com

INCENTIVES

1 Lease Rental Subsidy

Type of Benefit

Fiscal

Benefit Details

Reimbursement of 25% of lease rental subsidy to eligible startup units established in the state, operating from Incubators/IT Parks/Industrial Clusters or any other notified location shall be eligible for a period of 1 year subject to the ceiling of INR 1lakh per annum.

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years
With annual turnover not exceeding INR 25 crore in any preceding financial year
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation/
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958.
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

2 Innovation Promotion Subsidy

Type of Benefit

Fiscal

Benefit Details

Cost reimbursement for max 3 Patent/Quality certification per Unit up to a limit of INR 2 lakh for domestic & INR 5 lakh for International Patent/Quality certification upon successfully receiving them.

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and
With annual turnover not exceeding INR 25 crore in any preceding financial year; and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence;
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup;
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

3 Assistance for Program/App Development

Type of Benefit

Fiscal

Benefit Details

Government will empanel software/mobile app development agencies for extending programming/app development support to eligible startups, and would reimburse development cost to the tune of 60% for application development undertaken through empaneled agencies, to the ceiling of INR 1 lakh per startup.

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and
With annual turnover not exceeding INR 25 crore in any preceding financial year; and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence;
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup;
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

4 Seed Grant

Type of Benefit	Fiscal
Benefit Details	A Seed Grant up to INR 3 Lakhs per start-up shall be provided for validation of idea, prototype development, assistance towards travelling costs and carrying out field/ market research/ skill training/marketing and initial activities to setup a startup etc.
Eligibility Criteria	Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India: As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and With annual turnover not exceeding INR 25 crore in any preceding financial year; and Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence; Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup; Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.
Application Procedure	Seed funding to startups would be routed throughState/Centre recognized Incubators. The incubatee would apply for the grantin the incubators where it is being incubated & incubator after due diligence would forward the case to the Implementation Committee. Startups need not necessarily be incubated in the incubator for being eligible for seed funding but such independent startup would be tagged to related incubators for due diligence and further recommendation to implementation committee. The Implementation Committee would further give its recommendation & accordingly sanction the grant on merit of the idea.

5 Self Certification

Type of Benefit	Non-Fiscal
Benefit Details	Startups and incubators in the state will be permitted to file self-certifications and will be exempted from inspections under the following acts and rules framed there under barring inspections arising out of specific complaints.In case a unit has to be inspected for certain reasons the permission of the District Magistrate shall be obtained: The Factories Act, 1948 The Maternity Benefit Act,1961 The Shops and Commercial Establishments Act,1958 The Contract Labour (Regulations & Abolition) Act, 1970 The Payment of Wages Act, 1936 The Minimum Wages Act, 1948 Payment of Gratuity Act, 1972 Child Labour (Prohibition & Regulation) Act The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
Eligibility Criteria	Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India: As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and With annual turnover not exceeding INR 25 crore in any preceding financial year; and Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence; Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup; Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

Type of Benefit

Non-Fiscal

Benefit Details

Startups and incubators in the state will be permitted to file self-certifications and will be exempted from inspections under the following acts and rules framed there under barring inspections arising out of specific complaints.In case a unit has to be inspected for certain reasons the permission of the District Magistrate shall be obtained:

The Factories Act, 1948
The Maternity Benefit Act,1961
The Shops and Commercial Establishments Act,1958
The Contract Labour (Regulations & Abolition) Act, 1970
The Payment of Wages Act, 1936
The Minimum Wages Act, 1948
Payment of Gratuity Act, 1972
Child Labour (Prohibition & Regulation) Act
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and
With annual turnover not exceeding INR 25 crore in any preceding financial year; and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence;
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup;
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

6 Preferential Procurement

Type of Benefit	Non-Fiscal
Benefit Details	The Government shall encourage participation of Startups in the Government procurements by waiving off prior experience or turnover requirements so long as the product meets the desired specifications.
Eligibility Criteria	Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India: As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and With annual turnover not exceeding INR 25 crore in any preceding financial year; and Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence; Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup; Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

Type of Benefit

Non-Fiscal

Benefit Details

The Government shall encourage participation of Startups in the Government procurements by waiving off prior experience or turnover requirements so long as the product meets the desired specifications.

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and
With annual turnover not exceeding INR 25 crore in any preceding financial year; and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence;
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup;
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

7 Annual Hackathon Competiton

Type of Benefit

Fiscal

Benefit Details

The State would be actively participating in Smart India Hackathon, with Gurugram being proposed for year 2018, wherein the startups/students would be invited to propose innovative solution for the social/economical challenges being faced by the Government.Total of five participants would be rewarded monetarily. Winner- INR 1 Lakh; 1st runner up – INR 75,000; 2nd runner up – INR 50,000; 3rd & 4th runner up – 25,000 each.

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and
With annual turnover not exceeding INR 25 crore in any preceding financial year; and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence;
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup;
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

8 EPP 2015 MSMEs Incentives

Type of Benefit

Fiscal

Benefit Details

Incentives/provisions under Enterprise Promotion Policy 2015 in force will be available to startups. However, the incentive for the same component cannot be claimed from more than one scheme

Eligibility Criteria

Startup means an entity (Private, Public, Proprietary, Partnership Firm), incorporated in India:

As a private limited company (as defined in the Companies Act, 2013) or registered as a Partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and
Not prior to seven years and in the case of Biotechnology Companies this period shall be up to 10 years; and
With annual turnover not exceeding INR 25 crore in any preceding financial year; and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence and should not have been formed by the demerger or reconstitution of a business already in existence;
Provided that such entity is not a holding company and it is not a subsidiary of any firm already in existence or except the subsidiary of any startup;
Location: The company/entity be registered in Haryana under the Haryana Shops and Commercial Establishment Act, 1958 ; and
Employment: The company employs at least 50 (fifty) per cent of its total qualified workforce in Haryana, which shall not include contract employees.

1 Exemption on Rental Charge

Type of Benefit	Fiscal
Benefit Details	Incubators would be given 50% exemption on lease rent and operation & maintenance charge for Govt. owned building for 3 years, upto a maximum of INR 5 lakh per annum per incubator.

2 Recurring Expense Reimbursement

Type of Benefit	Fiscal
Benefit Details	Govt. Incubators shall get the support for recurring expenses as Operational Subsidy assistance upto the limit of INR 1lakh per year for a period of 3 years.

3 Stamp Duty & Registration Exemption

Type of Benefit	Fiscal
Benefit Details	Incubators shall be provided 100% Stamp duty registration exemption on purchase/lease of land/Office space/IT Building with the condition of commencing operation within 2 years.

4 Mentoring & Training Assistance

Type of Benefit	Fiscal
Benefit Details	In order to provide mentoring for priority issues such as fundraising, scaling, recruitment and product interface, Incubators shall be provided Mentoring Assistance support upto a limit of INR 3 lakh per year.

5 Assistance in Participation of Fair/Exhibition

Type of Benefit	Fiscal
Benefit Details	The Industry association/Incubators leading a delegation of startups to National and International Fair/Exhibition or for organizing such fair/exhibition/seminars should be provided financial assistance up to INR 25 Lakh or as actual basis. At most 12 such events would be supported by the State government annually.

6 Capital Subsidy

Type of Benefit	Fiscal
Benefit Details	Government Host Institutes shall be provided capital grant of 50% of Capital Investment (excluding land cost) for setting up Incubator, Subject to max INR 1 Cr. Private Host Institutes shall be provided capital grant of 50% of Capital Investment (excluding land cost) for setting up Incubator, Subject to max INR 50 lakhs

7 Startup Competition Assistance

Type of Benefit	Fiscal
Benefit Details	To encourage entrepreneurship culture in colleges, Eligible Institutes of National Importance, State Universities & Central Universities based in Haryana, established Incubators in these institution’s premises shall be supported by state government to organize such startup competition fest annually in which state shall provide assistance up to the limit of INR 5 lakh per event.

1 Funding for Scaling Up

Type of Benefit

Fiscal

Benefit Details

Haryana government would create a corpus fund of INR 100 Cr dedicatedly for category I funding to meet the funding requirement for scalability of Startups.

The fund features would be as follows:

The State Government shall set up a fund with an initial corpus of INR 100 Cr to be invested over a period of 5 years as the Alternative Investment Fund (AIF) identifies investment opportunities.
The Fund would be about the nature of FoF, which means that it will not invest directly into the Start-ups, but shall participate with capital commitment in SEBI registered Category 1 AIF Venture Funds.
SIDBI would manage this Fund and would make the disbursement to Venture Capital Fund after due diligence, once the condition is fulfilled.
The mandate would be given by state government to make 10% contribution in the total corpus of the VC Fund subject to the condition that VC invests twice the amount contributed by the State Government in the startups based in Haryana. The proportionate return or proceeds from the Venture Funds shall be remitted back to the FoF. This returns along with Capital gains shall be used to continue to fund Venture Funds to continuously support rapidly growing start-up eco-system.
The State Government in total would contribute 10 % of the funds size to be raised by VC and it shall be released only when the VC makes investment in Haryana based Startup.

1 Capital Subsidy

Type of Benefit	Fiscal
Benefit Details	Government Host Institutes shall be provided capital grant of 50% of Capital Investment (excluding land cost) for setting up Incubator, Subject to max INR 1 Cr. Private Host Institutes shall be provided capital grant of 50% of Capital Investment (excluding landcost) forsetting up Incubator, Subject to max INR 50 lakh.

2 Startup Competition assistance

Type of Benefit	Fiscal
Benefit Details	To encourage entrepreneurship culture in colleges, Eligible Institutes of National Importance, State Universities & Central Universities based in Haryana, established Incubators in these institution’s premises shall be supported by state government to organize such startup competition fest annually in which state shall provide assistance upto the limit of INR 5 lakh per event.

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