Bootstrap – From Ideas to Reality (Newsletter for Startups) – August

Technopark Technology Business Incubator (T-TBI), a joint association of Technopark, Trivandrum and the Department of Science and Technology (DST), Government of India, to help the technology business start-ups. It receives around 300-600 applications every year.

Their Mission– T-TBI functions with a vision to support and nurture the startups in the state of Kerala. T-TBI provides incubatees with necessary infrastructure support, research assistance, technology/ prototype development support, and help in getting funds, business consulting assistance and do whatever is necessary to make the start-up a success. Technopark TBI is designed to provide a springboard to budding entrepreneurs who wish to launch themselves into the world of technology based entrepreneurship careers.

T-TBI works towards building successful companies by designing and offering whatever is needed to make a startup successful. This has enabled T-TBI to win the Award for the Worlds 2nd Best Science Based Incubator instituted by CSES, UK and Techno policy Network, Netherlands. Technopark TBI won the AABI (Asian Association of Business Incubation) Award for the Best incubator of 2012. Earlier T-TBI was recognized by the Department of Science and Technology in 2007 as the best Technology Business Incubator in the country. Technopark Technology Business Incubator since its inception from 2006, has pioneering Entrepreneurship development in Kerala.

For more details, visit https://www.technopark.org/

Tax exemptions:

Following tax exemptions have been allowed to eligible startups*:

• 3 year tax holiday in a block of seven years: Under Section 80-IAC, the Startup incorporated after April 1, 2016 is eligible for getting 100% tax rebate on profit for a period of three years in any of the 7 consecutive assessment years. Also, the annual turnover must not exceed Rs. 25 crores in any financial year in which the deduction is claimed.
• Exemptions claim against capital gains (54EE)- Long-term capital gains (LTCG) u/s 54EE will be invested in the Government’s special funds. The investment may go up to INR 50 Lakh and to be invested within 6 months from the date of transfer of asset and the exemptions will be applied for three years.
• Tax rate- The domestic companies will be liable for 25% tax along with surcharge and other cess if turnover less than INR 50 Crore in the FY 2015-16for F.Y.2017-18 and if turnover or gross receipts does not exceed Rs.250 crore in F.Y. 2016-17 for F.Y. 2018-19.Tax at 25% plus surcharge & cess is levied for the new domestic manufacturing companies that have been setup on or after 1st March, 2016. The tax is proposed on the conditions if the company do not claim any incentives under profit or investment.
• Exemption of Capital gains (54GB)- Under section 54GB of the Income Tax Act, 1961 exemption to individuals and HUF is granted on long-term capital gains arising from the sale/transfer of residential property being invested into the equity shares (50% or more) of such eligible start-ups with a lock in period of three years.
• Angel tax- The concept of ‘Angel tax’ has also been termed wherein if a residential angel investor invests in an eligible start-up even above the fair market value, shall be exempt from tax. Also, the investments made by incubators above fair market value is exempt. Such exemptions are subject to certain conditions.
• In addition to the financial relaxation, the start-ups are also assisted with the legal formalities related to the intellectual property rights protection and the registration of patents in a much faster, better and easier manner.
• Set off of carry forward losses and capital gains in case of a change in shareholding pattern: The carry forward of losses in respect of eligible startups is allowed if all the shareholders of such company who held shares carrying voting power on the last day of the year in which the loss was incurred continue to hold shares on the last day of the previous year in which such loss is to be carried forward. The restriction of holding of 51% of voting rights to be remaining unchanged has been relaxed in case of eligible startups.

Eligible Startup*

As per the Startup India Action plan, the followings conditions must be fulfilled in order to be eligible as Startup:

• Being incorporated for less than 7 years and for biotechnology startups up to 10 years from its date of incorporation.
• The annual turnover < Rs. 25 crores in any of the previous financial years (FYs).
• Aims to work towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
• Not formed by splitting up or reconstruction of a business that is already in existence.
• Must have obtained certification from the Inter-Ministerial Board setup for such a purpose.
• Incorporated as a Private Limited Company, or a Registered Partnership Firm, or a Limited Liability Partnership.

 Exemptions under Companies Act, 2013:

• A new concept for start-up companies has been introduced.
• Now, pursuant to the current notification, a Startup Company is exempt from preparing a Cash Flow Statement under the Companies Act 2013 which usually forms part of financial statements.
• Further, the startup companies are also not required to hold minimum number of 4 meetings of its board of directors in a year. Private company (if such private company is a start-up) shall be deemed to have complied with the law, if at least one board meeting has been conducted in each half of a calendar year and the gap between the two meetings is not less than 90 days.
• Annual return shall be signed by Company Secretary or where there is no Company Secretary, by the director of the company.

Exemptions under labour laws:

 Startups registered under the startup India initiative can complete a self declaration (for 9 labour laws) within 1 year from the date of incorporation in order to get an exemption from labour inspection.The nine labour laws applicable under this scheme are:

1. The Industrial Disputes Act, 1947
2. The Trade Unit Act, 1926
3. Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
4. The Industrial Employment (Standing Orders) Act, 1946
5. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
6. The Payment of Gratuity Act, 1972
7. The Contract Labour (Regulation and Abolition) Act, 1970
8. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
9. The Employees’ State Insurance Act, 1948.

from the second year onwards, up to 3 year from the setting up of the units, such startups are required to furnish self-certified returns and would be inspected only when credible and verifiable complaint of violation is filed in writing and approval has been obtained from the higher authorities.

From 2^nd year onwards, upto 3  year from the setting up of the units, such startups are required to furnish self certified returns and would be inspected only when credible and verifiable compliant violation is filed in writing and approval has been obtained from higher authorities.

1. 11 August 2018– Design Thinking for Entrepreneurs

Venue: IIT MADRAS RESEARCH PARK, KANAGAM, TARAMANI, CHENNAI, INDIA

Timing: 9:00AM – 6:00 PM (IST)

Objective: Design Thinking for Entrepreneurs is a bootcamp specifically designed for entrepreneurs from different walks of life. You could be a first-time entrepreneur or a seasoned professional taking an entrepreneurial path, or you could be a serial entrepreneur with a long list of startup successes to your name.

2.11 AUG 2018 – 12 AUG 2018- Implementing Product Management Practice

Venue: 91SPRINGBOARD LOTUS, ANDHERI EAST, SHREE KRISHNA NAGAR, MAROL MIDC INDUSTRY ESTATE, MUMBAI, INDIA

Timing: 9:30 AM (IST) onwards

Objective:

• To acquaint the participants with holistic frameworks used in product management, discover an understanding of few tools and techniques for effective product management
• To expose participants to all aspects of product management and provide an insight into product evaluation system
• To discuss various aspects related to product strategies, planning, market feedback, and such other topics, lastly create awareness on Product Management as Competency

3.   17 AUG 2018: Idea Validation: Get your business idea validated by experts

Venue: CENTRE FOR INCUBATION AND BUSINESS ACCELERATION CIBA MUMBAI, 6TH FLOOR, FR AGNEL TECHNICAL EDUCATION COMPLEX, SECTOR 9A, VASHI, NAVI MUMBAI, INDIA

Timing: 4:00 PM – 6:00 PM

Objective: The focus of IDEA VALIDATION camp will be to evaluate product or service ideas of aspiring entrepreneurs and validate them before they invest any amount of time, energy and capital into their ventures.  Their business ideas will go through intense validation process through a structured approach.

4.   19 AUG 2018 Business Plan and Business Model Canvas Workshop: StartedIndia

Venue:  TRIOS COWORKING SPACE – SHARED OFFICE SPACE – VIMAN NAGAR – PUNE, SAKORE NAGAR, VIMAN NAGAR, PUNE, INDIA

Timing: 1:00PM – 5:00 PM

Objective: Understanding the problem you are solving for your customers is undoubtedly the biggest challenge you’ll face when you’re starting a business. Customers need to know what you are selling and your product needs to solve a real problem.But, ensuring that your product fits the needs of the market is only one part of starting a successful business.

5.      24 AUG 2018 Get Funded

Venue: BANJARAHILLS, REGUS – BUSINESS CENTRE, MIDTOWN, 1ST FLOOR MID TOWN PLAZA, ROAD NO 1, HYDERABAD, INDIA

Timing: 2:00PM – 5:00 PM

Objective: ‘GET FUNDED’ is an exclusive face-to-face Program designed by boutique strategy & people consulting company Natio Cultus for the Indian Entrepreneur faced with the brutal world of funding. It is a powerful program with real world insights that will save you years of wandering and empower you with the confidence based on a foundation of knowledge; to seek the right investors for your business.

6.   26 AUG 2018 Accounting Simplified for Entrepreneurs and Professionals

Venue: VIMAN NAGAR, VIMAN NAGAR, PUNE, INDIA

Timing: 10:00 AM – 1:00 PM

Objective:To sharpen numerical skills for business leaders and professionals for the 21st century

Country: South Korea

South Korea is conveniently located in East Asia, with 100,210 square kilometers, its capital is the world’s second largest metropolitan area with almost half of all Koreans Living in Seoul.

The country sets apart a larger percentage of its GDP (4.36%) for research and development than any other country in that world

South Korea’s GDP in 2017 was close to $1.5 trillion, which is bigger than Australia.  Just 20 years ago the startup ecosystem in South Korea virtually did not exist. Looking at the Korean startup scene today, the community is strong and growing.  Over 500 million dollars a year has gone to funding late-stage startups for a few years now

South Korean Startup Ecosystem

• Entrepreneurs in Korea: The number of startups in South Korea in 2017 was close to 30,000 with over 100,000 startup employees. Just 20 years ago the number of startups was below 2,000. Some of the big corporations that have started their own startup hubs like Samsung’s C-Lab Space or Naver and their Startup Alliance.
• Startup Funding: It went from $71 million in funding in 2013 to $949 million in 2014. Then went to an all-time high of $1.8 billion in 2015.  Also, there are many Accelerator programs, Angels, and VC firms in South Korea.
• Startup Infrastructure: There are also over 100 accelerators, incubators, and Innovation Centers in South Korea. Some of the big names include WeWork, Fast Five, Fab Lab, Seoul Startup Hub, Google Campus Seoul, Maru 180, and the most recent Heyground.
• Technology: South Korea is the world’s most connected country with 95% of the country covered by Wi-Fi, has the fastest average Internet connection in the world
• Government Support: The social, political and economic climate in South Korea is favorable to the growth of the startup scene. The South Korean government has spent more than $2 billion each year since 2013 and plans to invest nearly $3.7 billion in the startup industry during the next three years.

Notable Startups:

• Zigzag: Zigzag brings South Korea’s fast fashion and established “gray market” of non-mainstream fashion lines to a single ecommerce platform
• Baedal Minjok: Seoul-based startup Baedal Minjok is the fastest growing restaurant delivery app in Korea.
• Viva Republica: South Koreans have fully embraced banking on their phones and Viva Republica has capitalized on that phenomenon with Toss. The app is one of the top-five payment apps in Asia and has raised nearly $3 million in funding and performed $3 billion in transactions
• Korbit: Korbit is Korea’s leading bitcoin exchange, wallet and merchant processor.

The Reserve Bank of India had formed ‘Foreign Exchange (Export of Goods & Services) Regulations 2015 and in the ambit of its Notification No. FEMA. 23/2000 – RB, Dated 23/05/2000 has modified from time to time the said notification, the latest being w.e.f 12/01/2016. Export trade is controlled by the Directorate General of Foreign Trade (DGFT) and its regional offices working under the Ministry of Commerce and Industry, Department of Commerce, Govt. of India.

The act defines export as “taking out of India any goods by land, sea or air.” Exports are completed once goods are cleared, loaded and have left territorial waters. In order to qualify a transaction as a transaction of export following two criteria must be fulfilled:

1. Goods must go out of India.
2. Foreign exchange must come into India

The following compliances are required while exporting goods/services from India-

1. Declaration of exports:-

• In case of exports taking place through Customs ports, every exporter of goods need to file the following forms-

1. Declaration in Form EDF 
2. Declaration in Form SOFTEX (In respect of export of computer software and audio/video/ television software)
3. Evidence in support of declaration:-

The following documents shall be required as evidence along with the declaration-

1. the exporter is a person resident in India and has a place of business in India;
2. the destination stated on the declaration is the final place of the destination of the goods exported;

• the value stated in the declaration represents –

1. a) the full export value of the goods or software; or
2. b) where the full export value of the goods or software is not ascertainable at the time of export, the value which the exporter expects to receive on the sale of the goods in the overseas market.
3. Indication of importer-exporter code number:-

The importer-exporter code number allotted by the Director General of Foreign Trade (DGFT) shall be indicated on all copies of the declaration forms submitted by the exporter to any authority and in all correspondence of the exporter with the RBI.

4. Submission of export documents – After the shipment is over, exporter is required to collect all relevant documents and submit the same to bank within prescribed time (21 days).

5. Period for realization-

The amount representing the full export value of goods / services exported shall be realized and repatriated to India within nine months from the date of export in convertible foreign exchange.

The “date of export” in relation to the export of software in other than physical form, shall be deemed to be the date of invoice covering such export.

6. Advance payment against exports:-

Where an exporter receives advance payment (with or without interest), from a buyer / third party named in the export declaration made by the exporter, outside India, the exporter shall be under an obligation to ensure that –

In the event of the exporter’s inability to make the shipment within one year from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the period of one year, without the prior approval of the Reserve Bank.

Get My Parking

Get My Parking (GMP) is a IoT-based mobile parking management system which digitizes the parking industry. This app allows users to search, bookand navigate to the nearest parking lot, eliminating the hassles of looking out for parking space. The cloud-based technology gives a bird’s eye view of all essential parking information, including map of locations, availability, pricing, and other details, along with cashless payment and navigation.

History

The Delhi-based Smart Parking App was founded in July 2015 by Chirag Jain (currently, the CEO) and Rasik Pansare (currently, the CMO). The story began in December 2012 when the co-founders met for a 15-day train adventure where they traveled across India for 8,000 km, meeting entrepreneurs and change-makers. They remained in touch and started working on Get My Parking part-time from 2015. Chirag graduated from IIT Madras in 2013 and worked in the automotive industry for 2 years before starting his entrepreneurial journey. Rasik graduated from FMS Delhi and was the president of the entrepreneurship cell there. An engineer and MBA by education, Rasik is also an engaging storyteller and has been a TEDx speaker, guest lecturer, and speaker at several Smart City and IoT summits in the past.

Initially, they faced problems in gaining trust of parking operators and then proving the value of digitization as clients never used modern technology to manage their parking lots. They spent 14 hours a day in parking lots to understand how the parking industry functions.

Within six months of launching the solution, they deployed over 50 smart parking systems across Delhi. In May 2016, they managed the parking system of “Maha Kumbh Mela” conducted in Ujjain which was one of the world’s largest event with 2 lac parking bays for a 5-crore crowd. Completing its 3 years of successful operation in the last month, it not only has digitized more than 300 parking lots, but also got installed in 800 plus devices executing 65 thousand transactions per day.

Recently, it acquired Bangalore based smart parking platform – Constapark. This acquisition is a sign of consolidation in the rapidly evolving mobility industry which will strengthen the domestic market leadership of Get My Parking. It has also partnered with Europe’s leading parking operator, APCOA, to revolutionize parking in 13 countries.

The problem it solves

Unorganized parking affects citywide mobility, congestion, pollution, and government revenues. A smart parking solution like GMP will resolve the long-ignored problem by reinventing the parking infrastructure

With end-to-end parking digitisation, cloud-based Get My Parking provides advanced analytics solutions for smart cities to reinvent parking infrastructure.

As per the IBM Global Parking Index 2011, an average urban motorist spends 20 minutes more on the road due to parking problems. This is not only a waste of time, but also loss of productivity.

A solution to all stakeholders

The platform intends to organize the industry by serving to all the stakeholders of the industry.

For Parking Contractors: Digitization of parking ticketing and management, which reduces revenue leakage and enables real-time business control.

For Citizens: Offers real-time availability, search, reserve, and navigate to parking space in advance. Also allows to pay cashless and get relevant deals where users park.

For Urban Planners: Provides citywide macro-level data about where, when, and how many vehicles are getting parked.

For Enforcement Agencies: Digital tools to enforce parking policies and violations.

For Smart City or System Integrator: End-to-end parking technology integrated with the city dashboard.