About Start in UP

Uttar Pradesh Startup Policy 2020 (First Amendment-2022)
(Department of IT & Electronics, Government of Uttar Pradesh )
As updated including first Amendment of G.O. No. 1802/78-1-2022-209/2022 dated 09.11.22
Incentives for Startups
As per the State Startup Ranking Framework issued on 18th February 2019 by DPIIT, Government of India, state startup policies must provide seed funding support in following ways e.g. Direct Government grant, Subsidized loan, Equity seed funding, Product development/marketing financial assistance and Monthly sustenance allowance. Therefore, policy introduces seed funding support in the form of Sustenance Allowance and Seed Capital for marketing the products/ideas as per following:
I. Sustenance Allowance: Sustenance allowance at the rate of INR 17,500 per month per startup for a period of one-year upto 25 startups per incubator per year shall be given to startups at the idea stage.
II. Prototype Grant:
A one-time prototyping grant of up to INR 5 Lakh per startup shall be provided to DPIIT and StartInUP registered startups. The assistance shall be provided in single tranche to startups. Note: 50% additional incentive clause shall not be applicable on this grant.
III. Seed Capital/Marketing Assistance:
The seed capital will be given in the form of Marketing Assistance upto INR 7.5 Lakhs per startup upto 25 startups per incubator per year to launch the Minimum Viable Product (MVP) in the market. The seed capital will be disbursed in milestone-based installments (e.g. 40% + 30% + 30%) in three tranches, the first being advance and remaining two on completing the milestones. On disbursement of first installment, Startups shall have to commit Key Performance Targets to the PIU on which they will be assessed before releasing the second and third installments of the grant. An evaluation committee will be set up for approval of grant demands from startups and will be sanctioned/disbursed only on the recommendations of the evaluation committee. This committee will be led by the eminent experts from institutions such as STPI, IIT Kanpur, IIM Lucknow etc. on nomination basis or as decided by the PIU and would also consist of other eminent stakeholders from the startup ecosystem.
Note: Additional 50% shall be given to startups founded/co-founded by women/ divyangjan/ transgender with more than 26% shareholding or startups having registered offices/ operations in Purvanchal/ Bundelkhand regions for both Sustenance Allowance and Seed Capital/ Marketing Assistance, or Startups founded/ co-founded by persons from Economically Weaker Section (EWS).
IV. Support to startups:
Free incubation shall be provided for 6 months at government owned/managed Largest Incubator, AKTU Innovation Hub and the proposed 3 Center of Excellences. Performance of the startups shall be evaluated at the end of six months and the incubation can be extended for six more months on satisfactory report. Overall free incubation period shall not be more than 12 months period.
V. Patent filing cost:
The cost of filing of successful patent shall be reimbursed to the incubated startups for Indian as well as foreign awarded patents: INR 2 Lakhs for Indian patents and INR 10 Lakhs for International Patents. vi. Event participation Reimbursement to startups for participation in events – upto INR 50,000 for national events and INR 1 Lakh for international events. This is applicable to all GOI registered startups which are incorporated in Uttar Pradesh. The condition of mandatory incubation through GoUP recognised incubators shall not be applicable in this case.
VI. Event participation:
Reimbursement to startups for participation in events – upto INR 50,000 for national events and INR 1 Lakh for international events. This is applicable to all GOI registered startups which are incorporated in Uttar Pradesh. The condition of mandatory incubation through GoUP recognised incubators shall not be applicable in this case.

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