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Bihar Start-ups: Get a Seed Grant of up to Rs 10 Lakhs

Deadline: 30-Sep-22

The Department of Industries, Bihar is now seeking applications for Bihar Start-up Policy, 2022.

The vision for the Bihar Start-up Policy,2022 is to enable Bihar emerge as the most preferred destination for start-ups and entrepreneurs
by leveraging the potential of local youth through a conducive Start-up ecosystem for inclusive growth in the State.

Objectives
  • Introduce, promote and encourage entrepreneurship education and career amongst the youth and entrepreneurs through various programs like “Udyami Bihar, Samridh Bihar Campaign”, Entrepreneurship Awards, Innovation Challenges and Business Plan Competitions etc.
  • Support Start-ups by seed-funding as well as matchinq grants to increase their viability.
  • Facilitate development of Entrepreneurship Development Centers and Entrepreneurship Facilitation Centers to increase awareness and promote entrepreneurship amongst the youth.
  • Encourage Entrepreneurship through education by introducing learning modules in the University/ Schools, MOOC (Massive Open Online Courses), internships amongst others.
  • Facilitate development of new and support expansion of existing Incubators/common infrastructure spaces/Co-working spaces.
  • Provide a one stop comprehensive portal for start-ups to access financial support (SEBI registered- Alternate Investment funds, Empanelled Angel Investor, etc.), regulatory support, Network of mentors and Empanelled Project Management Consultants.
  • Enable hassle-free and time bound statutory clearancesfor start-ups.
  • Provide appropriate institutional support to enable the nurturing of Start-ups including mentoring, hand holding and trainings/orientation visits.
  • Any other activity which will enable and create Start-up ecosystem in the state.
Benefits
  • Validation Stage
    • A Seed Grant of up to Rs 10 Lakhs per Start-up as interest free loan for 10 years shall be provided to start-ups.
  • Commercialization Stage
    • Early Stage Funding Support
      • Free of cost Valuation for Start-ups.
      • Facilitate access to Angel Investors.
      • A success fee @2% of investment shall be provided to start-ups for mobilizing investments from state registered angel investors towards early stage funding.
      • Matching Support: A financial assistance up to an amount equal to the amount invested in start-ups by the Angel Groups and Category- I Alternate Investment Funds may be given as loan to the Start-up. The rate of interest and terms and conditions of the loan shall be notified by the SMIC from time to time.
      • Assistance to enrol and participate for Acceleration Program: Assistance up to Rs. 3 Lakhs per Start-upto enrol and participate for National/ International recognized acceleration program. The fees/charges paid for attending the same will be considered eligible for getting assistance.
  • Scale-up Funding Support
    • The SMIC may participate in SEBI registered AIFs (Alternate Investment Funds) and Venture Capital Funds. The Venture Capital Fund so created shall invest at least 50% (i.e. equal to twice the contribution made by trust in the VC Fund) in start-ups located in Bihar.
    • SMIC shall facilitate listing and public issue of Start-ups in collaboration with National Level Stock Exchanges such as BSE/ NSE.
  • Zero Cost for filing patents – Domestic and Foreign
    • Intellectual Property (IP) is an invaluable business tool for start-ups, or entrepreneurs, providing initial start to one’s business. Investors weigh IPs heavily and create good value for venture. To encourage the registration of IPRs (Intellectual Property Right) by Start-ups and provide facilitation support for protection and commercialization of IPRs, Government.
    • Bear all costs associated towards filing domestic patents.
    • Provide additional financial assistance in form of reimbursement for awarded foreign patents towards filing fees.
Eligibility Criteria

An entity shall be considered as a Start-upon fulfilling the following conditions:

  • Up to a period of ten years from the date of incorporation/registration, if it is incorporatedas 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).
  • Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
  • Entity is 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 an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Start-up’.
  • Provided Start-up must be incorporated or registered in Bihar and having office in Bihar.
  • Provided further applicable taxes from the operations of the company are payable in Bihar.

For more information, visit https://startup.indbih.com/