Scheme For Assistance For Start Ups/ Innovation
in Gujarat
Last updated:
Key dates and updates (Gujarat)
Nationwide and Gujarat-specific milestones. Verify on the official portal before you apply.
| Milestone | Date |
|---|---|
| Scheme launch |
Scheme For Assistance For Start Ups/ Innovation in Gujarat
Scheme For Assistance For Start Ups/ Innovation is a government scheme available to eligible residents of Gujarat.
Apply for Scheme For Assistance For Start Ups/ Innovation in Gujarat
Scheme Overview
The "Scheme for Assistance for Startups / Innovation" has been introduced to encourage R&D and start innovation and entrepreneurship at different levels of the startup cycle. The scheme came into force on 07/08/2020 and will remain in operation for a period of 5 years, i.e. upto 06.08.2025.
Eligibility Criteria
> **For Startups:**
Any individual/group of individuals having an innovative idea/concept and recommended by an approved Nodal Institution will be eligible to get recognized as a startup under this scheme.
The innovative project can be from any sector or any faculty/branch of science/ technology/ engineering/ agriculture/ healthcare and no innovation worth its name is restricted from availing assistance just because of its being in a particular sector, making this a sector agnostic scheme.
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**Note 1:** An entity formed by splitting up or reconstruction of an existing business shall not be considered a 'Startup'.
**Note 2:** The startups which are availing incentives as a 'startup' in any other 'startup scheme' of the Government of Gujarat will not get incentives under this scheme. However, the startups/innovators availing benefits under the Student Startup and Innovation Policy (SSIP) would also be eligible to avail of assistance under this scheme.
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> **For Nodal Institution:**
Any University, Government approved/ affiliated/ recognized educational institution, Incubation center, PSU, R&D Institutions, private and other establishments operating in Gujarat.
The institution should be registered under the Companies Act-2013, rule of Section 8, as a 'non-profit making company'.
The institution should have separate spaces and engage full-time employees for the purpose.
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> **For Mentor:**
The mentor means a resource person who is registered under this scheme and associated/recommended by the Nodal Institution.
Benefits
The Quantum of Assistance as under would be provided to the Startups whose innovative project is approved/sanctioned by SLEC.
A sustenance allowance of ₹ 20,000 per month per startup will be provided to the Startups for a period of one year.
If startups have at least one woman co-founder, ₹ 25,000 per month per startup will be provided as a sustenance allowance.
Seed support up to ₹ 30,00,000 will be provided to the Startups on the following, based on approval/ sanction by SLEC:
1. Cost of raw materials/consumables/hardware & software/professional services /other equipment/ tools required for prototype/product/process development
2. Market research Testing & Trials
3. Marketing/ publicity assistance: Here marketing/ publicity assistance covers assistance to startups to attend national/international events. The fees/charges paid for attending the same will be considered eligible under this head.
[Note: However, it is clarified that to and fro conveyance/accommodation expenses will not be considered for assistance]
Additional support of upto ₹ 10,00,000 assistance will be provided to startups having innovative projects which have a significant impact on society, based on the conditions on approval/ sanction given by the SLEC.
In the life cycle of a Startup, there is a funding gap which is better identified as the valley of death. This is a phase post commercialization where the Startup has just started generating revenue till the time period where its product/service gets market traction. Such startups will be assisted in getting venture capital. Initially, to support, such mid-level Pre-series A funding to startups, a separate fund shall be created under Gujarat Venture Finance Limited (GVFL). This assistance will be specifically to cater to the startups that have already received seed support from the government under various schemes for the promotion of startups.
The startups that have been approved/sanctioned under this scheme will be eligible to avail of an additional interest subsidy of 1%, a maximum of up to 9% on term loans under the provisions of the scheme for assistance to MSMEs.
Assistance up to ₹ 3,00,000 per startup will be provided to enroll and participate in the national / internationally recognized acceleration program. Approved/sanctioned startups will be eligible for assistance up to ₹ 3,00,000 per startup during the operative period of the scheme, to enroll/participate in a national/internationally recognized acceleration program. The fees/charges paid for attending the same will be considered eligible for getting assistance. However, it is clarified that to and fro conveyance/accommodation expenses will not be considered under this assistance.
An acceleration program is typically a 3-4 month program for startups at the early traction and scaling stage. It is a process of intense, rapid, and immersive education aimed at accelerating the growth of the startup.
Approved/sanctioned startups shall be provided assistance for skill development training specific to soft skills, managerial skills, marketing skills, and financing skills for the startup project. Such skill development training should support the startups in understanding the ecosystem, fundraising, commercializing, and scaling up the startup project. Financial assistance up to Rs. 1 lakh per approved/sanctioned startup shall be given for participating in such skill development training programs on a reimbursement basis.
Mentoring Assistance of ₹ 1,00,000 per approved/sanctioned startup shall be provided to Nodal institution for the mentoring service (Maximum ₹ 15,00,000 per annum per institute.
Reimbursement of 75% of expenses incurred for organizing promotional events to the extent of a maximum ₹ 5,00,000. If the event being organized is specific to "Women Entrepreneurship", the Nodal Institution will be eligible for reimbursement of 90% of expenses incurred for organizing promotional events to the extent of a maximum ₹ 5,00,000. However, it is clarified that the beneficiary Nodal Institution will not be eligible to get assistance under any other scheme of Govt. of Gujarat for the same component/purpose.
1. Govt. will support approved/ sanctioned Startups to get free access to universities/ Libraries/ Govt. Laboratories/ SDCs (GIDC) / Center of Excellence / PSUs to support and facilitate innovative ideas/concepts.
2. For organizing Acceleration Programs in Gujarat any institution, would be assisted by providing financial assistance, as approved by SLEC, maximum up to the matching contribution to the expenditure incurred.
3. The project is entitled to avail of other benefits under the schemes for assistance to MSMEs.
Required Documents
| # | Document |
|---|---|
| 1 | Problem statement |
| 2 | Objective for the startup or innovation |
| 3 | Description of product/ service |
| 4 | How does it work? |
| 5 | USP/Uniqueness of the product/service |
| 6 | Target market and customers |
| 7 | Competition analysis – key competitors, the advantage of product/ service over competition, etc. |
| 8 | Detailed project cost breakup |
| 9 | Tentative action plan for the next 3-5 years |
| 10 | Revenue projections for the next 3-5 years |
| 11 | Social issue that a startup intends to address |
| 12 | Mission of the startup |
| 13 | Vision of the startup |
| 14 | Description of product/ service |
| 15 | How does it work? |
| 16 | Tentative action plan for the next 3-5 years |
| 17 | Details of the stakeholders who benefited from the social impact generated by the startup |
| 18 | Describe the measurable social impact generated by the startup. You must support it with photographs, interviews/testimonials of stakeholders/beneficiaries, recognitions or achievements, etc. |
| 19 | Describe the non-measurable social impact generated by the startup. You must support it with photographs, interviews/testimonials of stakeholders/beneficiaries, recognitions or achievements, etc. |
How to Apply in Gujarat
Step 1: An eligible Institution intending to promote startups shall submit its proposal on the online Portal to register itself as a Nodal Institution under this scheme.
Offline Step 1: An eligible Institution intending to promote startups shall submit its proposal on the online Portal to register itself as a Nodal Institution under this scheme.
Step 2: The registered Nodal Institution shall apply to the IC office with requisites in the prescribed format, for getting approval/sanction as a Nodal institution.
Offline Step 2: The registered Nodal Institution shall apply to the IC office with requisites in the prescribed format, for getting approval/sanction as a Nodal institution.
Step 3: The applications will be scrutinized by the Office of the Industries Commissioner and after due diligence, they will be placed before the SLEC for approval/ sanction.
Offline Step 3: The applications will be scrutinized by the Office of the Industries Commissioner and after due diligence, they will be placed before the SLEC for approval/ sanction.
Step 4: On approval from SLEC, the Office of Industries Commissioner will issue the Sanction letter to accord recognition as a Nodal Institution.
Offline Step 4: On approval from SLEC, the Office of Industries Commissioner will issue the Sanction letter to accord recognition as a Nodal Institution.
Step 1: Eligible innovators/startups shall get registered on the online portal to avail of assistance under the scheme.
Offline Step 1: Eligible innovators/startups shall get registered on the online portal to avail of assistance under the scheme.
Step 2: The Registered Start-ups shall apply to Nodal Institution with requisites in the prescribed format.
Offline Step 2: The Registered Start-ups shall apply to Nodal Institution with requisites in the prescribed format.
Step 3: Nodal institutions shall evaluate, validate and recommend the startup project proposal to the office of the Industries Commissioner.
Offline Step 3: Nodal institutions shall evaluate, validate and recommend the startup project proposal to the office of the Industries Commissioner.
Step 4: The startup project proposals will be scrutinized by the Office of the Industries Commissioner and after due diligence, the startup project proposals will be placed before the SLEC for approval/ sanction.
Offline Note: The Detailed procedures for approval/sanctions of Nodal Institutions/ Startups, conditions, and guidelines would be separately issued by the Office of the Industries Commissioner.
Common questions in Gujarat
Who can apply for Scheme For Assistance For Start Ups/ Innovation in Gujarat?
Eligible residents of Gujarat who meet the scheme’s overall criteria can apply for Scheme For Assistance For Start Ups/ Innovation. Refer to the eligibility section above for the complete checklist.
What documents are required for Scheme For Assistance For Start Ups/ Innovation in Gujarat?
Applicants in Gujarat typically need identity proof (Aadhaar), state residency proof, bank account details, and any scheme-specific documents listed in the documents section.
What are the important dates for Scheme For Assistance For Start Ups/ Innovation?
Key dates are summarized in the table on this page, from 9 January 2020 through 9 January 2020, based on values DeshSeva currently stores for this item.
Frequently Asked Questions
Ans: The objective of the scheme is to encourage and support start-ups and innovative projects in the state of Gujarat.