Incentives for Startup under the Apprenticeship Act
In order to create more employment opportunities
through startup ecosystem, Government of India have introduced incentivizing
startups by provision of ease in regulatory compliances. Startups are defined
by Department of Industrial Policy & Promotion (DIPP), as an entity,
incorporated or registered in India not prior to five years, with annual
turnover not exceeding rupees 25 Crores in any preceding financial year,
working towards innovation, development, deployment or commercialization of new
products, processes or services driven by technology or intellectual property.
Startups are allowed to self -
certify compliances with various Labour Laws. Similar action has been introduced
to incentivize startups engaging apprentices.
The Apprentices Act, 1961 has been
amended from 22nd December, 2014 to make it more users friendly to
industry as well as to the youths. Establishment has been allowed for selection
of trades and self-regulation of engagement of apprentices in a band of minimum
2.5% to maximum 10% of total strength of establishment including contractual
workers. The procedures for furnishing regular information through returns have
been simplified by providing them through apprenticeship portal www.apprenticeship.gov.in.
As per the Apprenticeship Rules,
1992, establishment may be inspected by an officer not below the rank of
Assistant Apprenticeship Adviser after prior approval of the Central or the
State Apprenticeship Adviser.
In the first year of setting up of
startups, inspection is completely dispensed with against self-declaration.
From the second year onwards, up to the next three years, startups may be taken
up for inspection only when very credible and verifiable complaint of violation
has been filed in writing and the approval has been obtained from concerned
apprenticeship advisor.
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