A grant in the amount of INR 3 lakh will be provided by the state government to aid companies with product development and training by Bihar Startup Policy. Syed Shahnawaz Hussain, the minister of industry for the state of Bihar, has inaugurated a startup site for young businesspeople who are interested in taking advantage of the opportunities presented by the platform. According to Hussain, the state government would pay a success fee equal to 2 percent of the total investment to any new businesses that are able to get funding from angel investors.
Bihar Startup Policy Registration
The Bihar Startup Policy was introduced on July 29 by Syed Shahnawaz Hussain, who serves as the industry minister for the state of Bihar. This policy is intended to encourage individuals to pursue business ventures in the state. In accordance with the Bihar Startup Policy, the state government would provide entrepreneurs with a seed money of 10 Lakh Indian Rupees (INR) free of interest for a period of 10 years. A firm that takes part in an accelerator programme will also get a grant of INR 3 lakh to go toward the development of their product and training.
The minister also announced that Startup Policy provisions will be expanded to cover 15 percent of founders from Schedule Castes (SCs) or Schedule Tribes (STs). Participants in accelerator programmes will receive a grant of Rs. 11.5 lakh seed fund and an investment of Rs. 3.45 lakh.
Sanjeev Kumar, the technical director of the Udyog Vibhag Department of Industries in Bihar, made an additional announcement that the state would begin accepting applications for startup seed financing beginning the next month.
Bihar Startup Policy Benefits
According to the minister, the Bihar Start-up Policy 2023 offers young people who are interested in starting their own businesses access to a beginning capital of 10 lakh rupees that is free of interest for a period of ten years. The benefits are increased by 5% for female entrepreneurs to encourage them to participate. This implies that instead of receiving 10 thousand rupees, they will get 10.5 thousand. The incentive will be 15 percent for founders of startups who are from the SC/ST groups or who have a disability, and they will earn Rs. 11.50 lakh.
In addition, there is a grant of three hundred thousand rupees available for businesses who participate in “rigorous training for product improvement and finance.” In addition, there is a provision that allows for the allocation of up to two hundred thousand rupees for the purpose of handholding and fostering young businesses. People who need counselling, training, or aid with marketing have been provided with the required preparations under the policy in order to assure their continued success even after they have received the seed funding.
Bihar Startup Policy Process
Syed Shahnawaz Hussain, the state’s industry minister, launched the Bihar startup policy seed fund coworking space on July 29. This move was made to encourage more people to establish their own businesses in the state of Bihar. As part of its policy pertaining to the launch of new businesses, the state government of Bihar offers prospective business owners a loan of Rs. 10 lakh, free of interest, for a period of 10 years. An extra grant in the amount of Rs. 3 lakh for product development and training would be provided to a firm that is participating in an accelerator programme.
In addition to the Bihar Startup Policy, Hussain also launched a startup site for aspiring young entrepreneurs who are interested in taking advantage of the opportunities presented by the platform. According to Hussain, companies who are successful in garnering angel investment will also receive an extra 2 percent of the overall investment from the state government as a success fee. This would be done in the form of a success fee.
“A matching loan mechanism has been established up under Bihar’s Industries Department’s Business Fund Trust in the event that a startup raises money from an angel investor but requires more funding.” Hussain said.
Bihar Startup Policy Eligibility
In addition to the Bihar Startup Policy, Hussain also developed a startup site for aspiring young businesspeople who are interested in taking advantage of the opportunities presented by the platform.
According to Hussain, the state government would provide an extra 2 percent of the total investment as a success fee to startup companies that are successful in attracting angel investments. As a success fee, this will be charged.
The Startup Fund Trust of Bihar’s industries department offers matching loans to startups if they raise funds from angel investors and still need more funds, he said. The Startup Fund Trust of Bihar provides matching loans to startups that successfully raise funds from angel investors and still need additional funding.
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