Startup India Seed Fund Scheme

Features of SAMRIDH Scheme

• The SAMRIDH scheme provides your startup which already has brilliant solutions and proof of concept for their product, better facilities to enhance the product using innovative technologies for the market with a solid business plan.
• The scheme provides a platform to enhance your products and secure investment for scaling your business.
• Once your startup gains traction, there is a gap in accessing the growth stage funding to scale up the operations,and the scheme is filling up this gap for startups.
• The scheme supports existing and upcoming Accelerators to select and accelerate potential IT-based startups to scale to solve India's problems and create positive social impact.

Eligibility for SAMRIDH Scheme

For Startups

• Must be recognized by DPIIT.
• Must be in the Early-growth stage.
• The product of the startup must be software-based.

For Accelerators

• Must have operations in India.
• Must have been in the business of incubation for more than three years and supported more than 50 startups.
• Must have the required infrastructure and targeted acceleration programs.

Application procedure for Startups

The application procedure primarily comprises the following steps:

• Visit https://meitystartuphub.in.
• On the homepage, click on “Register” under the Startup section.
• The registration page will appear. Fill in all the requisite details and click on the “Submit” button.
• Following registration, one can "log in" to the page for further access by filling in the username and password.

Benefits of SAMRIDH

• This scheme provides a platform for product development and business scaling in terms of investment.
• To provide customer connect, investor connect, and international connect services.
• Up to Rs 40 lakh will be provided to the startups according to their current valuation and growth stage through accelerators..
• Customized acceleration programs for startups and provided product and capacity enhancement services.

Post-Selection Process for SAMRIDH Scheme

The ​​MeitY SAMRIDH Scheme will be implemented through the MeitY Startup Hub (MSH). The selected Accelerator will be responsible for developing personalized acceleration programmes, and the budget for each startup is Rs. 2 lakh.

The services include- Co-learning, networking, expert diagnosis, and negotiation of investment funding from Angel Investors. A maximum of 10 businesses and a minimum of 5 startups working in the sphere of software products can be helped by a shortlisted accelerator.

MSH will take equity in startups for the government's contribution via Promissory/SAFE Note, the same as Accelerator, which will be utilized to sustain the program.The startup's exit may be executed by MSH or its appointed entity holding the company's equity, subject to approval from SMC. Biannual assessments of startups within the portfolio will be conducted, and the resulting reports will inform decisions regarding exiting from the startup.

Frequently Asked Questions

What is a Society?

A society is a non-profit organisation formed by a group of individuals who come together for charitable, literary, scientific, cultural, or educational purposes. Societies in India are governed by the Societies Registration Act, 1860, although many states have their own versions of the Act (e.g., Maharashtra, Tamil Nadu, etc.).

A society must have:

• A minimum of seven members to register at the state level
• An elected governing body or managing committee
• A constitution or memorandum outlining its objectives and rules

Societies are known for their democratic structure, where members have voting rights and leadership is elected periodically.

When to Consider Forming a Society?

Forming a society may be your best option if:

• You prefer a democratically run organisation with an elected management committee
• Members may change frequently or seek easy exit options
• You want a relatively simple dissolution process
• You're operating within a state jurisdiction (or planning to expand nationally with additional registrations)
  
  

Societies are particularly suited for community-driven or volunteer-based initiatives, like resident welfare associations, cultural organisations, and grassroots education or health programs.

Meaning of Trusts

A trust is a legal arrangement under the Indian Trusts Act, 1882 (or relevant state-specific Public Trusts Acts) in which a settlor (or author) transfers property or assets to one or more trustees, who hold and manage them for the benefit of specific beneficiaries.

Key roles in a trust:

• Author of the trust: The person who creates the trust and donates property
• Trustee: The person(s) responsible for managing the trust and fulfilling its objectives
• Beneficiary: The individual(s) or group for whom the trust is created

The central concept is the "beneficial interest"- the trustee has legal control of the asset, but the benefit goes to the beneficiaries. Trusts are often used in both private and public charitable contexts.

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When and Why You Might Need a Trust?

You might choose a trust if:

• You want to retain long-term control without democratic elections or rotating leadership
• Your non-profit involves family members or a small, stable group of trustees
• You need privacy, minimal external regulation, or flexible distribution of benefits
• You plan to manage property, assets, or legacy donations

Trusts are ideal for schools, hospitals, orphanages, and religious institutions, especially when the focus is on asset management and continuity over generations.

Meaning of Section 8 Companies

A Section 8 Company is a special form of non-profit company registered under the Companies Act, 2013. It is incorporated to promote commerce, art, science, research, education, social welfare, religion, or charity.

Key features:

• It must apply for a license from the Central Government
• Its profits or income cannot be distributed as dividends
• All income must be used to promote the organisation’s objectives
• The name does not include “Limited” or “Private Limited”

Section 8 Companies are highly structured, professionally governed, and seen as credible entities both by donors and government bodies.

Reasons for Forming a Section 8 Company

You should consider registering for Section 8 Company if:

• You're looking for a formal and transparent governance model
• You want to build long-term partnerships with government bodies, corporates, or international NGOs
• You're applying for CSR funds, grants, or FCRA registration
• You want to project credibility and professionalism in your operations

Section 8 Companies are ideal for large-scale non-profits, social enterprises, or organisations planning to operate across India or internationally.

Difference Between Society, Trust, and Section 8 Company

All three structures, Trusts, Societies, and Section 8 Companies, are eligible for tax exemptions under Section 12A and 80G of the Income Tax Act. They also meet the definition of "charitable purpose" under Section 2(15).

But beyond this, they vary significantly in formation, governance, compliance, and scalability. Here’s a comparison at a glance:

Each structure, Trust, Society, or Section 8 Company, has its own strengths. The right choice depends on your mission, governance preferences, funding goals, and long-term vision.

Frequently Asked Questions

Iccha Shakti

Encourages aspiring entrepreneurs to kickstart their business ventures.

Gyaan Shakti

Offers knowledge and ecosystem support to women entrepreneurs, nurturing entrepreneurship.

Karma Shakti

Provides practical assistance to entrepreneurs in establishing and expanding their businesses.

It specifically provides access to programs for

• Incubation and acceleration
• Entrepreneurship skilling and mentorship
• Marketing assistance
• Funding and financial assistance
• Compliance and tax assistance
• Community and networking

Eligibility

Any woman entrepreneur with an established or new startup or just a business idea can benefit from this scheme.

Application procedure for Startups

• Visit https://wep.gov.in/.
• Click on the “Register” button on the homepage. Following this, a registration form will appear on the screen.
• Fill in all the details and click on the “Register” button at the bottom of the page.
• After completing registration, a page will appear asking for “Areas of Interest” and relevant fields.
• Fill in all the Personal Information, Business Information, and Educational information. Keep in mind that the fields might vary depending on the area of interest you are choosing.
• Successful submission of details leads you to become a member of the WEP and grants you access to several benefits.

Benefits of the WEP

WEP actively hosts a wide range of events as a platform, providing resources and promoting entrepreneurial communities.

• It provides monetary assistance, including seed capital, growth capital, line of credit( LOC), and non-credit support.
• Promotion of offline initiatives and outreach programs by partnering with other organizations.
• Incubation and acceleration support to startups founded or co-founded by women entrepreneurs registered with the program.
• Identification of skill gaps and providing online/offline training on these aspects.
• Marketing and networking support to early-stage or established entities
• Compliance services to registered users, which provides them with the essential tools to adhere to legal compliances, perform registrations, furnish accounts, make loan applications, provide license counseling, and so on.
• A like-minded community to understand the true spirit of entrepreneurship and the way forward.

To provide better support, WEP has tied up with some Fortune companies like CRISIL, Facebook, SIDBI, NASSCOM, DICE, FICCI, Mann Foundations, Shopclues, CII, and many others. The fortunes will play a key role in developing different skill sets important for a robust entrepreneurial ecosystem.

Frequently Asked Questions