To establish Madhya Pradesh as a preferred destination for Startups & Incubators, the policy Madhya Pradesh Startup Policy 2019 has been issued.
This policy is applicable from 01.04.2020 to the time a new policy replaces this policy.
1. Identification:
1.1 Startup:
An entity shall be considered as “startup”:
1.2 Incubator:
An organization designed to support startup companies during the early stages to help develop a scalable business model through business support resources & services such as:
- Leased workspace
- A pool of shared support services (business, legal, financial, mentoring, etc.) to reduce overhead costs
- Professional and managerial assistance
- Access to or assistance in acquiring funding.
2. Eligibility:
2.1 Eligibility for Incubators:
2.2 Eligibility for Startups:
3. Incentives:
3.1 Incentives to Incubator:
Capital Assistance:
- One-time capital grant of max. 50% or Rs. 1 Crore, whichever is less for Fixed Cost Investment (excluding land & building) for setting up incubator.
- State Government shall provide top-up grant for establishment of Technology Business Incubators (TBI) funded by Government of India with ceiling of maximum Rs. 50 lacs upfront, given that total assistance subsidy is not more than 50% of total project cost.
- State Government shall provide grant for establishment of Livelihood Business Incubators (LBI) established in tribal districts of Madhya Pradesh with ceiling of maximum Rs. 100 lacs upfront, given that total subsidy is limited to 100% of total project cost.
- The same limit shall be extended to incubators for capacity expansion of existing facility subject to the capacity utilization of the existing facility for 1 year.
Operational Assistance:
Operational expenses as per actual expenses incurred up to maximum of Rs. 10 Lacs per year for 3 years from the date of sanction. The maximum ceiling depends on the utilized seat capacity as mentioned below:
Stamp Duty & Registration:
Incubators shall be provided with one time reimbursement of 100% stamp duty & registration fee on purchase/ lease of land/ office space on commencement of their operation.
2.2 Incentives to Startups:
Watch video: