Startups shall be allowed to be self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
In the case of environment laws, startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases.
Labour Laws:
The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
The Payment of Gratuity Act, 1972
The Contract Labour (Regulation and Abolition) Act, 1970
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Employees’ State Insurance Act, 1948
Environment Laws:
The Water (Prevention & Control of Pollution) Act, 1974
The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
The Air (Prevention & Control of Pollution) Act, 1981
DPIIT Recognition
Under the Startup India initiative, eligible companies can get recognised as Startups by DPIIT, in order to access a tax benefits, easier compliance, IPR fast-tracking & More. DPIIT-Recognised Startups Are Eligible For The Following Benefits :
Intellectual Property Rights (IPR)
Relaxation in Public Procurements Norms
Self-Certification under Labour & Environment laws
Fund of Funds for Startups (FFS)
Credit Guarantee Scheme for Startups (CGSS)
Startup India Seed Fund Scheme (SISFS)
Faster Exit for Startups
Angel tax exemption under Section (56)(2)(viib)
Programs & Challanges on Startup India Website
DPIIT-Recognised Startups May Apply To Inter-Ministerial Board (IMB) For The Following Benefits:
Section 80-IAC: Income Tax Exemption for 3 out of 10 years
Section 54GB: Capital Gain on Transfer of Residential Property
Section 79: Carry Forward and Set Off of Losses
Sections 156, 191 and 192: Deferment of Tax Liability on ESOPs