• Department of Industries and Commerce, Govt. of Nagaland

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  • Startup Incentives


    i. GST Reimbursementn:

    Start-ups shall be eligible for annual reimbursement of State GST paid in sales of goods and services for a period of three years up to a maximum of INR 1.50 lakh per start-up per year. An additional 30% reimbursement for up to two additional years shall be eligible for women-led start-ups. (* Start-up may submit their GSTIN along with GST payment declaration and filed GST Return for the period for which reimbursement is being claimed.)

    ii. Seed Grant

    Start-ups will be eligible for one time seed grant at the ideation stage up to 1.00 lakh depending on the creativity and innovation.

    iii. Digital Upgradation Subsidiary:

    Start-ups shall be eligible for a one time digital up-gradation subsidy at 50% of capital expenditure for purchase of computers, smart phones, related hardware and software, Broadband connectivity up to a maximum ceiling of INR 2.00 Lakh.

    iv. Power Subsidy:

    Start-ups shall be eligible for power subsidy @50% of the actual cost/bill subject to a limit of INR 1.00 lakh per year for a period of 2 years.

    v. Reimbursement of Patent Filing Cost:

    Start-ups selected under this policy shall be eligible for reimbursement up to 100% of the actual cost (including filing fees, attorney fees, search fees, maintenance fees) for patent filing with a maximum limit of INR 1.00 lakh for filing domestic patent and ₹1.5 lakhs for women-led start-ups for filing domestic patent. This reimbursement shall be payable 50% after the patent is filed and the balance 50% after the patent has been granted.

    vi. Marketing and Promotion Assistance:

    Start-ups shall be eligible for reimbursement of 50% of the actual marketing and promotion costs (including travel) incurred by a Start-up in listing fees for online and offline advertisements, in-store promotions, publishing or digital marketing materials, trade show participation, market research etc. subject to maximum of INR 2.00 lakh per Start-Up.

Other support for Startups

    i. Regulation:

    In line with the Ease of doing Business initiative, the Department will facilitate and work with Line Departments to ease regulations to avail Government licenses and services through “National Single Window System” (NSWS): www.nsws.gov.in

    ii. Encourages Public Procurement:

    a) The State Government will encourage participation of Start-ups in public procurement by waiving off prior experience or turnover requirements so long as the product meets the desired specifications and encourage consortium of eligible companies with start-ups in bidding for State Government projects which will bring in the element of innovation and new ideas.

    b) Eligible companies to mandatorily partner start-ups in lieu of waiving off prior experience specifically for software application development and infrastructure deployment.

    c) Exposure Trips: The Department will organize Business Compliance workshops and Exposure trips for Incubators and Start-ups to gain knowledge on other states that are thriving in the Start-up ecosystem.

    d) In order to encourage the State’s recognised Start-up and to document their journey as a successful Company, the State shall reimburse the cost and expenses for successful incorporation of the entity under Company Act, 2013/Partnership Act, 1932/Limited Liability Partnership Act, 2002 and the DPIIT (Department for Promotion of Industry and Internal Trade) registration fees subject to maximum ceiling of INR 50,000/- per Start-up in the 1st year only and 50% of compliance cost for 2 years up to 30,000/-.

    e) Start-ups shall be eligible for incentives/provisions under Nagaland Industrial and Investment Policy in force or any other Central and State Schemes/ provision/ incentives implemented by the Department. However, the eligibility criteria for availing the above shall be subject to NIS approval.

    f) Innovation Catalyst Grant (ICG): A one-time grant up to 5.00 lakhs will be given to start-ups with the most innovative product with the scalable value addressing a critical problem within the State.

    g) Revolving Funds: 25% of Fund of Funds will be reserved for Person with Disabilities (PwD) start-ups.

    h) Special Focus on Women led Start-up

    i. Definition

    A women-led start-up refers to an entity that is founded, co-founded, or led by women (Indigenous inhabitant of Nagaland). The eligibility criteria for a women-led start-up may include the following considerations:

    1. Entities with more than 51% shareholding by women start-ups (either individually or collectively) the date of incorporation should not be prior to ten years.

    2. The entity must be a Sole Proprietorship; however it must be registered under Company Act, 2013/Partnership Act, 1932/Limited Liability Partnership Act, 2002.

    3. Women should be actively involved in the day-to-day management and operations of the start-up. This involvement can include roles such as chief operating officer (COO), chief financial officer (CFO), chief technology officer (CTO), or other key management positions.

    4. Women should be represented at various levels within the start-up, including the board of directors and advisory roles. Having women in decision-making positions beyond the founder or CEO level.

    Start-ups selected under this policy shall be eligible for incentives/provisions under Nagaland Industrial and Investment Policy in force. However, the incentive for the same component cannot be claim from more than one scheme.

    ii. Special Incentives for women-led start-up

    a. Support for migration to Digital Marketing, Advertising and maintaining e-commerce platform: E-commerce platforms offer significant opportunities for women start-ups to expand their business online and Digital marketing is essential for promoting Digital footprint of their products/services in the digital space. The state shall provide support up to INR 4.00 lakhs (INR 2.00 lakhs of Digital Up gradation Subsidy and INR 2.00 lakhs of Marketing and Promotion Assistance) per women entrepreneurs/ start-ups for digital marketing, social media advertising, hosting fees, maintaining online payment system, content creation, and email marketing. This support will help women start-ups increase their online visibility, reach wider audience, and boost sales. However, 90% of the targeted Consumer should be Women, female- focused products/service, and product/services designed to meet Women’s needs.

    b. Promoting Women Role Models: The state shall highlight successful women start-ups and leaders as role models to inspire and motivate aspiring women start-ups, showcasing their achievements and sharing their stories through media platforms and Start-up Nagaland Portal.

    c. Milestone-Based Seed Funding: Under the milestone-based seed funding approach, the State shall fund INR 1.50 lakh per Women led- start-ups up to a maximum of ten (10) start-ups per year. The disbursements of seed fund will be tied to specific measurable milestones or achievements, financial projection including revenue forecasts, cost structures, and expected profitability, DPR presentation, social impact of the project and scalability of operations, potential for market expansion, and opportunities for growth.

    EmpowerHer Fund": An amount of INR 10.00 lakhs per year shall be reserved for Incubators, NGOs, Women Organization, Institutions, Societies and bodies working toward empowerment of Women. The implementing party shall utilised the fund specifically for mentorship support to help women start-ups scale their businesses and break through funding barriers, activities related to livelihood generation programs/ activities, or any other women related activities. The NIS shall have the discretion for identification and sanction of “EmpowerHer Fund”.

    i) Incentives & Award for Person with Disabilities (PwD) Start-ups:

    The State is committed to encourage and promote Person with Disabilities (PwD) Start-ups. Special efforts will be made to:

    1. Promote Start-up Incubation Program for Person with Disabilities (PwD) which will not only serve as a common platform for PwD start-up but also facilitate networking opportunities and partnership for PwD start-ups through knowledge sharing events to foster connection and collaboration with mentors, investors and other stake holders. An amount of INR 5.00 lakhs shall be allocated in a year for organising the event.

    2. In order to raise awareness, build confidence and inspire others within the PwD community. The state shall recognise/award best PwD for contribution to entrepreneurship, innovation, and community development. For which an amount of INR 5.00 lakh shall be allocate per year for this initiative.

    3. The State shall encourage the development of products/ services that directly address the unique needs and challenges faced by PwD. PwD start-ups in collaboration with the State recognised Incubators shall be to encourage identifying areas where innovation can help addressing unmet needs within the PwD communities. For which the State shall allocate INR 10.00 lakhs per year as Research & Development (R&D) Seed funds for PwD. The criteria to avail/disbursed the R&D Seed Fund for PwD shall be at the discretion of the NIS.

    4. The State recognised Incubators will serve as an important point of contact and support for Person with Disabilities (PwD) start-ups. With accessible co-working spaces, business incubation, and innovation hubs. Provide resources such as accessible technology, equipment, and tools to facilitate their entrepreneurial journey.

    j) The Financial/ non-financial Incentives for PwD start-ups shall be routed only through the Incubation centre where the PwD start-ups is an Incubates.