The Bihar Startup Policy 2022
Bihar’s 2022 startup policy sets up a support system for startups, funding, approvals, and incubation, and says eligible startups must meet listed conditions.
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About this statute
Bihar’s 2022 startup policy sets up a support system for startups, funding, approvals, and incubation, and says eligible startups must meet listed conditions. The policy gives start-ups exemptions from some licensing and inspections, requires annual self-declarations, and provides funding and patent support with several caps and conditions.
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Provisions of The Bihar Startup Policy 2022
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The Bihar Startup Policy 2022 — segment 1
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The Bihar Startup Policy 2022 — segment 1
Bihar’s 2022 startup policy sets up a support system for startups, funding, approvals, and incubation, and says eligible startups must meet listed conditions.
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Preamble 1.1 Bihar is progressing fast on the track of development, with unrelenting efforts being made towards strengthening infrastructure and promoting industrial growth. Government of Bihar is committed to improve competitiveness of the state's economy and achieving inclusive growth. Start-ups and Innovation playa key role in economic growth. This can be realized by promoting innovation and creating an ecosystemthat nurtures start-ups from concept to commissioning. Apart from creating jobs, start-upsfocus on innovation to create next gen solutionswhich bring economic dynamism. 1.2 Government of Bihar formulated and notified Bihar Start-up Policy, 2016 to create an independentand transparent eco system, where the state shall provide funding, promotion and policy support which was later amended as Bihar Start-up Policy 2017.The State has setup a Trust, with an initial corpus of INR 500 crores, which acts as the nodal agency for implementationof this policy. 1.3 In order to further boost the ecosystem and to make it more holistic and beneficial for the youth and entrepreneurs of the state, the Government has approved the Bihar Start-up Policy,2022. This policy also aims to broadbasethe coverage, with an effective andfaster implementationprocess. 2. Vision Thevisionfor the Bihar Start-up Policy,2022: "To enableBihar 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 inclusivegrowth in the State" 3. Policy Period Bihar Start-up Policy, 2022 will be effectivefrom the date of notification. The saiddate shall be considered as effective date of this policyfrom which its provisions shall come intoforce and shallbeapplicable for 5 years. .r' . 4. Objective 4.1 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. 4.2 Support Start-ups by seed-funding aswell asmatchinq grants to increase their viability. 4.3 Facilitate development of Entrepreneurship Development Centers and Entrepreneurship Facilitation Centers to increase awareness and promote entrepreneurship amongst the youth. 1 .- c ~. 4.4 Encourage Entrepreneurship through education by introducing learning modules in the University/Schools,MOOC (MassiveOpen OnlineCourses), internshipsamongstothers. 4.5 Facilitate development of new and support expansion of existing Incubators/common infrastructurespaces/Co-workingspaces 4.6 Provide a one stop comprehensive portal for start-ups to access financial support (SEBI registered- Alternate Investment funds, Empanelled Angel Investor, etc.), regulatory support, Networkof mentorsand EmpanelledProjectManagement Consultants. 4.7 Enable hassle-freeandtime bound statutoryclearancesfor start-ups. 4.8 Provide appropriate institutional support to enable the nurturing of Start-ups including mentoring, handholding andtrainings/orientationvisits. 4.9 Any other activitywhichwill enable andcreateStart-upecosystem inthe state. 5. Eligibility of Start-Ups in Bihar An entity shallbeconsidered asa Start-uponfulfillingthefollowing conditions: i. Upto a period often yearsfrom 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(underthe LimitedLiabilityPartnershipAct, 2008). ii. Turnover of the entity for any of the financial years since incorporation/ registrationhasnot exceeded onehundred crore rupees. iii. Entity isworkingtowards innovation,development orimprovement of productsorprocesses or services, or if it is a scalable business model with a high potential of employment generation orwealth creation. iv. Providedthat an entity formed by splitting upor reconstructionof an existing businessshall not beconsidered a 'Start-up'. v. Provided Start-up must beincorporated or registeredinBihar and having officeinBihar. vi. Providedfurther applicable taxes from the operationsofthe company are payableinBihar. 6. Institutional Framework A strong Governance structure shall be established for effective implementation and monitoring of Bihar Start-up Policy, 2022. The composition of the governance structure is as follows: a. 8ihar Start-up Fund Trust (8SFT) chaired by Development Commissioner, Government of Bihar for deliberation on the policy matters, inter-departmental collaboration and bi annual progressreview on the policyimplementationoutcomes. 2 '.., '.1 b. Start-up Monitoring & Implementation Committee (SMIC) to take decisions on the matters of policy implementation, inter-departmental co-ordination or any other issues referred by PSCfor decisionmaking. c. Preliminary Scrutiny Committee (PSC) to oversee the work of Start-up support unit as we" as decision makingfor effective implementation of the Start-up policy. d. Start-up Support Unit (SSU) to act as single point of contact for a" Start-up related matters. 6.1 Bihar Start-up Fund Trust (BSFT) The Bihar Start-up Fund Trust is an autonomous body constituted under the Chairmanship of Development Commissioner,Government of Bihar.The composition of BSFTis as follows: I 5 No I Members Designation 1 I DevelopmentCommissioner~=.:.;:_:..=..=:..:...=.----- Chairperson I I Member-Secretary /2 Principal Secretary,IndustrieS- _~_ ~ __ c__ l Member [~rin~~1 Secretary,Finance _ Member 4 Principal Secretary,Planning I 15 :: Member 'Pri~~pal se;etary, Scienc; &'TechnoI09Y :6 Twoeminentexperts inthe Start-upfield nominatedbythe IMember I Department of Industries Member ,7 Director liT Patna,DirectorCIMP I 18 2 RepresentativeofAssociations, Organisationsand Institutions Member promotingentrepreneurshipto be nominatedbythe Department I of Industries 9 t Representative of FinancialM~HiagementCompanyl Society _..Member f ' L~ --- ---'- 6.1.1 Role of Bihar Start-up Fund Trust a. Monitoring and reviewof Start-up policy and its implementation b. Amendments and/or modifications, if any, required inthe policy c. Approve major issues like rating system of start-ups, detailed guidelines for Start-up approvals and handholdingetc. d. Liaison with Central and other.State Departments for effective implementation of the policy, if required e. Any other issues referredby SMIC. 3 6.2 Start-up Monitoring and Implementation Committee (SMIC) SMIC shall be constituted under the Chairmanship of Principal Secretary, Department of Industries, Government of Bihar. The composition of SMIC shall be: Designation SNo Members 1 Principal Secretary,Industries Chairperson Member-Secretary 2 . Directorto benotifiedbythe Departmentof Industries. - .~ _,-- 3 , Representative of FinanceDepartment Member '4 -Representative of Science& Technology Department I Member I I Member 5 Representative of ITDepartment - 6 2 RepresentativeOtTncubatorsto be-nominatedbythe Member Department of Industries __ 2 Representatives ofAssociations,Organisations and Member 17 , Institutions promotingentrepreneurshipto be nominatedbythe Department of Industries 8 Nodal Officer of SSU Member SMIC shall meet frequentlyandgap betweentwo consecutive meetingsshall not bemore than 45 days. 6.2.1 Roleof Start-up Monitoring andImplementationCommittee(SMIC) a. Overall Implementation ofthe Policy b. Approval for certification of start-ups c. To onboard Start-up ecosystem stakeholders such as mentors, incubators, angel investors, venture capitalist etc and develop infrastructures such as common space, Start-up portal, EDCetc d. To approve matching grantsto start-ups, success-grants ~tc. e. Liaisonwith other state Departmentsfor effective implementationof the policy f. Any other issues relatedto theeffective implementation of Start-uppolicy. 6.3 Preliminary Scrutiny Committee(PSC) A Preliminary Scrutiny Committee shall be constituted underthe Chairmanship of Director to be notified by the Department of Industries, Government of Bihar. The composition of Preliminary Scrutiny Committeeshall be: IS N-o- Members Designation 1 Director to benotified bYtheDepartment ofTr1dustries.Chairperson- I 2 2 Representatives of Incubatorsto be nominatedby Member I the Department of Industries ; 3 2 Repre'sentativeofAssociatio~s, Org-anisations'and,I Mefnber Institutions promotingEntrepreneurshipto be ' I nominated bythe Departmentof Industries 4 NodalOfficerof SSU Member-Secretary 4 6.3.1 Role of Preliminary Scrutiny Committee a. Approve, tag and refer the applications shortlisted by PMN TPA to the subject related incubators. b. Assist SMIC in on boarding Start-up ecosystem stakeholders such as mentors, incubators, angel investors, venture capitalist etc. and development of infrastructures such as common space, EDC, Start-up portal etc c. Assist SMIC on various issues related to implementation of the Policy. d. Monitoring of Start-up Support Unit (SSU) e. To provide timely redressal of grievance of start-ups and other stakeholders. 6.4 Start-up Support Unit (SSU): A Start-up Support Unit (SSU) under Department of Industries shall be created for effective implementation of this Policy. SSU shall be responsible for creating a conducive policy environment for sustained growth of Start-up ecosystem in the state. It will act as single point of contact for engagement with ecosystem stakeholders such as mentors, incubators, angel investors, venture capitals etc. To manage the operations of SSU, department of industries may depute adequate manpower from the department or through a Project Management Agency (PMA). SSU may also be placed in Corporation or Company of the Government for effective functioning. 6.4.1 Role of Start-up Support Unit (SSU): a. Work as single point of contact for start-ups in the state for providing information as well as hand-holding support b. Process applications through an online portal, their screening and approval-by competent authorities c. All communications with start-ups d. Providinghand-holding support to start-upsthrough various stages e. Actas single window system for gettingall statutory clearances for start-ups f. Act as Secretariat for implementationof Start-uppolicy g. Organiseevents, sessions, trainings, visitsandother activities for promotingthe Start-up culture 6.5 Third PartyAgencies Third PartyAgencies (TPA) maybetaken on board for: a. Designof the rating system for start-ups b. Evaluationof applications as perthe approved ratingsystem c. Recommending certification of start-ups d. Recommending seed funding / matchinggrants etc as perthe approved criterion based on ratingachieved bythe start-ups. 5 ( '- 6.6 FinancialManagementCompany An existing or newCompany of Governmentof Bihar may be made FinancialManagement Company to carry out the financial operations under this policy. Financial Management Companyshalldisburse incentives, loansandother financial assistance to the Start-upsas decidedbySMIC. Itshall carry out thefollowingactivities: a. Asset Managementofthe Trust b. Facilitation and assistance for funding to Start-ups such as seed grant, early stage and scale-upfunding and other funding supportstatedinthe policy c. Financial assistance to develop and manage ecosystem such as Entrepreneurship Development Cells, common infrastructures etc and raise funds from multilateral donor agencies d. FacilitateInvestment related decisions underthepolicy inatime bound manner 7. Application Process and Certification of Start-ups a. The Start-ups shall submit their applicationonline along with detailed descriptionof idea in the prescribedform through the OnlineStart-upPortal. b. Onlineapplications received shall bescrutinizedand processed by SSU.The SSUwill short listthe eligible start-ups as per criterionapprovedby the Start Up FundTrust.The SSUwill alsoprovide hand holding support tothe Start-upapplicants to improvetheir proposals. c. The short-listed applications. will be approved by the "Preliminary Scrutiny committee" headed by Director to be notified by the Department of Industries for referringthemto the incubators. d. After preliminary examination the shortlistedapplications shall be tagged to the Incubators. The Incubators will provide hand-holding support and after the incubation process shall preparea proposal for Start-upon thefollowingissues: i. BusinessPlan ii. The amount offunding assistancerequiredat various stages iii. Any requirement of common infrastructureorother infrastructure createdunderthis policy iv. Any assistance as envisaged underthis policy e. The list of such recommendations/proposalsreceived from incubators shallbeevaluatedby the Third Party Agency (TPA) and a rating will be provided as per the approved rating criterion. f. Start-up Monitoring and Implementation Committee (SMIC) shall examine these recommendationsand certify Start-upsasperthe rating criterion. g. Financial incentives and other support shall be provided to start-ups based on their cateqonzation through rating mechanism. The detailed guidelines in this regard will be finalizedwith approval of BSFT. 6 8. YUVA: The action plan to support start-ups and create an enabling eco system. 8.1 Bihar Start-upPolicyhas been designed onfollowingfour pillars (YUVA) Yes to Start-ups(Awareness, NetworkingandMentoringCampaign) UnleashRegulatoryEnablersfor SupportingStart-ups Vibrancy inEducationSystemto encourage andfacilitate Start-ups Access tofinancing & incubation support 9. YUVA: Yesto Start-Up 9.1 Promoting Awareness "Udyami Bihar, Samridh Bihar Campaign" and FacilitatingNetworkingPlatformfor Start-ups Government is committed to encourage entrepreneurshipas an education and career both, for the youth across all economic and social segments of the population. In order to inculcateentrepreneurial culture amongstyouth,Government shall: a. LaunchStart-upoutreach and awareness campaign"Udyami Bihar, Samridh Bihar"at State levelincollaborationwith Start-up stakeholders b. Recognize and promote achievements of successful local start-ups by organizing 'EntrepreneurshipAwards' c. Organizestate levelchallenges/ businessplancompetitions d. Support business networks (Industry Associations/Organizations promoting Start-ups) to organizeStart-upawarenessactivitiessuchasStart-upfairs \, 9.2 Assistancefor IdeaDevelopment Conducive Start-up ecosystem enables youths to convert their ideas into meaningful propositions.A proper guidance system isessentialfor youth to express and enhancetheir ideas. In orderto spread awareness and provideguidance to potential entrepreneurs, State \' shall providefinancial assistance to facilitate: \ a. Setting up Entrepreneurship Development Cells in Divisional towns in collaboration with \ Educational Institutes, Bihar based industrial associations/organizations promoting start- \ ups. b. Setting up Entrepreneurship FacilitationCentersat Educational & Professional Institutes. 9.2.1 These Cells/Centers shall: \ a.\ Organize various promotional events to disseminate awareness about entrepreneurship j \ and promoteStart-up culture inthe state under"Udyami Bihar, Samridh BiharCampaign". f lbf .
Part document.segment-2
The Bihar Startup Policy 2022 — segment 2
- document.segment-2 Verify source ↗
The Bihar Startup Policy 2022 — segment 2
The policy gives start-ups exemptions from some licensing and inspections, requires annual self-declarations, and provides funding and patent support with several caps and conditions.
Provide assistance to students/potential entrepreneurs for presenting and enhancing their idea to various stakeholders of Start-up ecosystem viz. Government, education institutes, I incubators, industry experts, legal,tax and businessconsultants. 7 e- c. Support start-ups for preliminary mentoring and business plan support, company registration, market research support, business structuring advisory and management consultancy. 10. YUVA: Unleash Regulatory Enablers for supporting Start-ups 10.1 Setting up comprehensive one stop portal for Start-up-Ecosystem in Bihar Statutory clearances from relevant regulatory authorities are pre- requisite for a Start-upto commence operations. Limited awareness of the processes increases the turnaround time for registration, hence delays the commencement of operations for the Start-ups. t single window clearance system supported by interactive training manuals and checklist would enable Start-ups to register themselves in an easy and timely manner. Start-up ecosystem needs a single platform for interaction and collaboration with each other. In order to establish a single platform for interaction and information sharing of various stakeholders, a Start-up Bihar portal shall be launched. This portal shall provide instant accessibility to start-ups for: a. Accessing interactive tutorials for registration process and checklist for the various clearances required with specified timelines. b. Registering with relevant authority and filling various State Level compliances through standardized forms. c. The portal shall also be integrated with other Government of India sponsored Start-up Portals for connecting with various stakeholders of the ecosystem. d. Interacting and collaborating with various stakeholders viz. Registered network of mentors and professional experts, incubators, academia, empanelled Project Manaqernent , Consultants and angel investors, SEBI-registered AIFs (Alternate Investment funds) arid ' I other stakeholders. ', e. Empanel mentors of networks to start-ups having potential for growth and scalability. ',J' { f. Accessing various State Government Schemes and Incentives available for Start-ups. I' .r I Starting up a business involve getting various stages of departmental approval arytJ clearances. Most of the start-ups are unaware of the complex policies and regulaJ:ry framework, which may hinder their regular operations. Therefore, it is imperative for Government to minimize the regulatory compliances, punitive actions and provide support /awareness to these propellers of next stage economic growth. In line with above, Government shall enhance the ease of doing business by nh/nimizing inspections and encouraging self- certifications. j \ \ \ a. Start-ups shall be exempted from licensing/registration for operations under various\State Acts for a period of 5 years. However, Statutory Licenses (such as Drug License, FS1SAI, Building Plan, Fire Fighting) shall be required to be obtained by the Start-up if its nature of 8 I -.' business/activity may leadto potentialthreat to life and safety, in such cases Government shall bearthe cost of license(s). b. Start-ups shall be exempted from inspections by Government Regulatory Agencies for a period of five years unless there is threat to life and safety. In case a unit has to be inspectedfor certain reasons,the permissionofthe District Magistrateshallbe obtained. c. Self-Declaration shall be submitted by Start-ups annually as per the format prescribed by State Government. d. State Government Departments/ PSUs shall be advised to give preferenceto Start-ups in procurement processfor products/services. e. State Government shall endeavour to allot 10% of spaces in.forthcomingindustrial parks, SME Clusters and Hub for Start-ups/lncubators/ Common Shared Infrastructure on preference. 11. YUVA: Vibrancy in Education System Educational institutes provide an apt environment for introducing and educating entrepreneurship for promoting the culture of innovation. Government recognizes the importanceof reforms ineducationfor creatingentrepreneurial spiritamongst students. In order to promote Start-ups culture and innovation in youth of Bihar, Government shall facilitate/recommend following interventions: a. Embed Entrepreneurship modules in high schools, university, skill training, and vocational training institutes' curriculums! programs.Education institutes will besuggestedto introduce Massive Qpen Online Courses(MOOCs) as electives and make internships/apprenticeship mandatory. b. Education / Professional Institutes shall be supported to formulate Entrepreneurship FacilitationCentre to guide andassist studentsto pursue entrepreneurship. c. Organize Business/Innovation Idea Competitions amongst students. Shortlisted ideas shall be provided support for prototypingandwill beshowcased in Start-up Festorganized by the State. d. Organize social innovation challenge through Entrepreneurship Development Cells to provide challenge grant to 20social innovatorsto support their ideas. 12. YUVA:Access to FundingandIncubation Support 12.1 Facilitating Incubation Centersfor Start-ups Incubation centres are crucial for nurturing promising Start-ups. They provide access to mentor:ingnetwork, market network, shared physical infrastructure etc. Creation of Physical Infrastructure generally requires large capital investments. Considering this, following incentives/financial assistanceshallbeprovidedto start-ups: a. Financial assistance for setting up of new incubators (both physical and virtual) and expanding State supported Incubators. 9 c, b. Reimburse cost of incubating a Start-up maximum up to Rs 2 Lakhs per incubatee to Government recognized private / state supported incubators. c. Fiscal incentive to Incubators @2% of the investment received by its incubatee from SEBI registered AIFs (Alternate Investment Funds) into Bihar based start-ups. d. The Government shall provide financial assistance to match the funding raised by Incubator(s) from Government of India and Multilateral donor agencies on 1:1basis on same terms and conditions. 12.2 List of State Supported Host Institutes/Incubators The Start-up Support Unit (SSU) with approval of the SMIC, shall from time to time update the list of state support host institutes and State Sponsored incubators in Bihar Start-up portal. 12.3 Common Infrastructure for Start-ups Government shall facilitate creation of common infrastructure for Start-ups. The shared infrastructure shall include: a. Co-working spaces. b. Provide shared facilities like R&D labs, cubicles, conference rooms etc. c. Shared software and hardware like high-end printer, computers etc. d. Common testing labs and tool rooms. e. Shared services like legal, accounting, technology, patents, investment banking. f. Individual accommodation and hostel rooms g. Community events and promotional support for incubation and start-ups h. Common facilities Centers (warehouse, Storage, Quality Assurance labs) Common infrastructure spaces shall be established either by Government or through PPP mode. This support shall be available to Start-ups Free of Costand onchargeable basis for specified periods as per normsdecidedby Bihar Start-up FundTrust. 12.4 Apart from the incubation centres, a "Bihar Innovation Hub" will be set up, which shall provide all services of an incubator including shared workspaces, professional business advisory/consultancy; access to funding and also provide support at commercialization stage including networking and merger & acquisition, valuation advisory amongst others. This innovation hub shall befurther expanded into virtual incubatorto widespreadits reach. 12.5 Funding Support to Start-ups Funding support shall be providedto Start-ups invarious stagesof its businesscycle. ValidationStage: 10 12.5.1 Seed Funding Support A Seed Grant of upto Rs 10 Lakhs per Start-up as interest free loan for 10 years shall be provided to start-ups. This financial assistance shall be released on achieving milestones/phases and performance parameters as defined in the rating system. The financial assistance may also be provided to start-ups for validation of idea, prototype development, assistance towards travelling costs and carrying out field/ market research/ skill training/ marketing and initial activities to setup a Start-up etc. The actual amount of funding shall be based on the assessment made by rating agency. The loan shall be returned after 10years. Commercialization Stage: 12.5.2 Early StageFunding Support a. Free of costValuationfor Start-ups. b. Facilitate accessto Angel Investors. c. A success fee @2% of investment shall be provided to start-ups for mobilizing investments from state registeredangelinvestorstowards earlystage funding. d. 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 bythe SMICfromtime to time. e. 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. 12.5.3 Scale-up Funding Support a. 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 bytrust inthe VC Fund)instart-ups located in Bihar. b. SMIC shall facilitate listing and public issue of Start-ups incollaboration with National Level Stock Exchanges such as BSE/ NSE. Incentives/ provisions under Bihar Industrial Investment Promotion Policy in force will be available to start-ups. However, the incentive for the same component cannot be claimed from more than one scheme. Efforts will be made to leverage relevant benefits available under various schemes of Government of India. All the incentives shall be availed based on categorization of start-ups through rating mechanism. 11 ---- -- __ -J' 12.6 Zero Cost for filing patents- Domesticand Foreign Intellectual Property (IP) is an invaluable business tool for start-ups, or entrepreneurs, providing initial start to one's business. Investors weigh IPs heavilyand create good value for venture. To encouragethe registrationof IPRs (Intellectual Property Right) by Start-ups and provide facilitation support for protection and commercialization of IPRs, Government shall: a. Bear all costs associatedtowards filingdomestic patents. b. Provide additional financial assistance in form of reimbursement for awarded foreign patents towards filingfees. 12.7 Additional incentives to SC/ST /WomenIDifferently- Abled Incentives listed belowshall solely beapplicable to start-upswhich are fully owned by any one person of this category or a group of persons defined inthis category. Efforts shall be made to identify persons belonging to the Scheduled Castes and Scheduled Tribe and promote entrepreneurship amongthem. 12.7.1SMIC may set up Project Management Units to specifically handhold them in setting up their ventures. 12.7.2Entreprcncurs under this category will avail additional grant / exemption /subsidy than the limitfixed underclause12.5.1and 12.5.2of this policy a. Woman Enterprise-additional5% b. SC/ST-additional 15% c. Differently Abled -additional 15% 12.7.3Additionally, 22% of the total corpus for funding start-ups shall be reserved for SC/ST beneficiaries. . 12.7.4Based upon the requirement,the BSFTmay relax the eligibility criteria, as stated in clause 5,for certifying start-ups belongingto SC/STI women anddifferentlyabled. 13. Exit Conditions a. If the company is found guilty on any charges of fraud or if the company is found to have made any false declarations to claim any benefits from or derived under this policy. Legal action shall be initiatedto recoverallfinancial assistance providedto suchanentity. b. Once an entity ceases to be recognized as a start-up; the Government or entity through which the Government makes its investment will be eligible to exit its investment in the Start-up andguidelines for exit will beframed by SMICfor channelizinginvestments intothe start-up. When the Government or its representative entity exits its investment;the right to • nominate a representative directoronthe board ofthe Start-upwill alsobeextinguished. 14. Protection of action taken in good faith a. No suit, prosecution or other legalproceeding shall lieagainstTrust, Financial Management Companyl Society or any official involved in the implementation of this policy in respect of 12 ,( anything which is done or intended to be done in good faith under this policy or in pursuance of any order, executive instructionordirection made or giventhere under. b. No suit or other legal proceeding shall lie against the Trust, Financial Management Company or any official involved in the implementation of this policy for a damage caused or likelyto becaused by anything which is done or intended to be done in good faith under this policy or in pursuance of any order, executive instruction or direction made or given there under. 15. The works which are being done under Bihar Start-up Policy, 2017 will be considered as covered under Bihar Start-up Policy,2022. 16. In case of any discrepancy in the meaning and interpretation of the translated version of this policy, the English languageversionshall bebinding in all respect andshall prevail 17. This policy shall come into effect from the date of issue of the policy in Bihar Gazette notification and shall remain inoperationtill 5 yearsfrom the date of such notification. 18. The proposal has been approved by the State Cabinet in the form of item number-13 on 17.06.2022. (SANDEEP POUNDRIK) PrincipalSecretary, Department of Industries,Bihar, Patna. I()(, MemoNo- 150'2... tPatna, Dated- 2. =t l '2-0 2.- 'l_ FileNo.-4Tech.lStart-up policy amendmenV155t2021 Copy to: The Superintendent, State Printing Press, Gulzarbagh, Patna to publish in the special edition of Bihar Gazette. It is requested to print 1000 copies of the published gazetteand make it available to the Department. ~ Zi) b1'YL.. Principal Secretary, Department of Industries,Bihar, Patna. 12.. MemoNo- 15b'2... tPatna, Dated- Q..'1- ( 0b 0'1L FileNo.-4Tech.lStart-up policyamendmenV15512021 Copy to: Principal Secretary of Chief Minister, Bihar IP.S to Industry Minister, Industry Department, Bihar, Patnat O.S.D to Chief Secretary, Bihar, Patnat P.S.S to Development Commissioners, Bihar, Patna for information. ~b)~ Principal Secretary, Department of Industries,Bihar, Patna. 13 lOb Memo No- I 5D~ IPatna, Dated- 2.::r (Q..O?- L FileNo.-4Tech.lStart-up policy amendment/155 12021 Copyto: All Additional Chief Secretaryl All Principal Secretaryl All Secretaryl All Heads of Departments, Bihar, Patnal President- Cum- Managing Director, Bihar State Power (Holding)Company Ltd. Patnafor informationandnecessary a~tion.. \-....v 'l.,,) '" PrincipalSecr tary, Department of Industries,Bihar,Patna. MemoNo- r 5o f).... IPatna, Dated- 2..;r, 0 b ( 2.._Q~2- File No.-4Tech.lStart-up policyamendmenU15512021 Copy to: Director of Industries 1 Director, Technical Development 1 Director, Food Processing 1 Director, Handloom and Sericulture, Industries Department, Bihar, Patnal Director,M.S.M.E.D.I, Patna, Muzaffarpur for informationand ~ 'l.~' ~'">1- PrincipalSecretary, Department of Industries,Bihar,Patna. MemoNo- t 5o 'l- IPatna, Dated- 2-':J- ( 0(:, I 2.()I)..L File No.-4Tech.lStart-up policyamendmentl15512021 Copyto: All Divisional Commissionersl ResidentCommissioner, Bihar Bhawan,NewDelhi IAII District Magistrate/AIi Deputy Development Commissioners/AIi General Manager, District IndustriesCenter, Biharfor informationandnecessary action. 'l."" ~~C)1., Principal Secretary, Department of Industries,Bihar,Patna. MemoNo- , 5o'l.. IPatna, Dated- 2.. =t- ( 0(. 12..0 I}':L File No.- 4Tech.lStart-up policyamendmentl15512021 ~~~,~ Copy to: The Accountant General (Accounts & Title), Bihar, Patnal All Treasury Officer, r--b) Bihar,for information and necessary action. PrincipalSecretary, Department of Industries, Bihar,Patna. MemoNo- f 5 t)'l.. IPatna, Dated- Q_ =1-1 0(, 1'2.. 0"L~ FileNo.-4Tech.lStart-up policy amendmentl15512021 ~...,~~,~ CopyWIT Manager, Department of Industries,Bihar, Patna for uploadin he copyof the resolutiononthe Departmental Website. Principal Secretary, Department of Industries,Bihar,Patna. 14 Annexure Definitions Acceleration Program: An Acceleration programs istypically a 3-4 month program for Start-ups at early traction and scaling stage. It is a process of intense, rapid and immersive education aimed at acceleratingthe growth ofthe Start-up. An.gel Investor: Angel Investor is (also known as business angel/informal investor) an individual or group of investors who invest in Start-ups at an early commercialization stage in return of convertibledebt/equity. Alternate Investment Funds: Alternative investmentfunds (AIFs) are defined in Regulation 2(1) (b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. It refers to any privately pooled investment fund, (whether from Indian or foreign sources), inthe form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP) which are not presently covered by any Regulation of SEBI governing fund management (like, Regulations governing Mutual Fund or Collective Investment Scheme) nor coming under the direct regulation of anyother sectoral regulators in India-IRDA,PFRDA, RBI. Category I Alternate Investment Funds: Category IAlternate Investment Funds are defined in Regulation 3(4) (a) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. It refers to AIFs which invest in Start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and include venture capital funds, SME Funds, socialventure funds, infrastructurefunds and such otherAlternative Investment Funds as maybe specified. Commercialization Stage: Commercialization Stage refers to an integral stage in lifecycle of Start-upwherein Start-upsscale uptheir business and commercial.izeproduct! services. Differently abled: As defined in"The Rights of Personswith Disabilities Act, 2016 and any other statue enactedfor thewelfare of person with disability. Entity: Entity refers to Private. Limited Company (under The Companies Act, 2013) or a Registered Partnership Firm (under section 59 of The Indian Partnership Act, 1932) or Limited Liability Partnership (underThe Limited Liability PartnershipAct, 2008). Financial Management Company/ Society: meansas perpara 6.6. Fund Manager: Financial Management Company/ Society shall appoint one or more fund managersfor managingthe fund and activities mentioned underthis policy. Government: means Government of Bihar inthis Policy unless otherwise specified. Idea Stage: Idea Stage refers to an integral stage in lifecycle of Start-ups wherein feasibility analysisof the ideaisperformed to evaluate the success/failure ofthe concept. Incubator: Incubator meansphysical spaces which helps entrepreneurs to convert their ideasin becoming successful and profitable ventures by supporting them in business planning, mentoring, , 15 recruiting their top team, commercializing their technologies, developing their products, getting early seed funding, help in forging partnerships at the national and global level, advice on intellectual property, training and development and many other things. This could be a private agency or a government institution. Mentoring: Mentoring is generally a pool of industry experts/ academicians that help Start-ups by providing unbiased guidance, strategic support and thinking and help them build their network. Preliminary Scrutiny Committee (PSC): means as per para 6.3. ~ Registered: Registeredrefersto anentity registeredwith RegistrarofCompanies (RoC)8ihar. Seed Grant :Seed Grant is a financial assistance provided to Start-ups to develop a prototype product and generate sufficient investor interest for subsequent rounds of funding. Terms and conditions ofthe financial assistanceare mentioned inpara 12.5.1. Scheduled Caste (SC) IScheduled Tribes (ST) Enterprise: Enterprise fully owned by SC/ST. Partial shareholding of SC/STinanenterprise shallnot betreated asSC!STenterprise. Start-up Support Unit (SSU): meansas per para6.4. Start-up Monitoring and Implementation Committee (SMIC): meansas per para6.2. State Supported Incubators/Incubation Center: means incubator(s)supported by Government of Bihar and! or Governmentof India. T81: A Technology Business Incubator (TBI) as recognized by Department of Science and Technology, Governmentof India. Trust! Bihar Start-up Fund Trust: Trust means a nodal agency constituted by Department of Industries, Government of Bihar underThe IndiaTrustsAct, 1882 for the purpose of policyreview and implementationofthis Policy. Validation Stage: Validation Stage refersto an integralstagein lifecycleof Start-upswhereinthe product/service is produced and delivered in a limitedcapacitywhich can be scaled up uponthe success and requirement. Venture Capital: Venture Capital is the fund invested in Start-up at commercialization stage upon critical appraisal of the project undertaken by venture capital companies. The capital is generally invested inreturnof equity shareholding. Woman Enterprise: An enterprise headed by woman where 100% stake is owned by woman. Partialshareholding ofWoman in anenterprise shall notbetreated asWoman enterprise. 16
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