BIHAR

START-UP POLICY-2022

Department Of Industries, Govt. Of Bihar

 BIHAR Start-Up Policy-2022

Table of Contents

1 Preamble 1

2 Vision 1

3 Policy Period 1

4 Objectives 1

5 Eligibility of Start-Ups in Bihar 2

6 Institutional Framework 2

7 Application Process and Certi cation of Start-ups 6

8 YUVA: The action plan to support start-ups and

create an enabling eco- system 7

9 YUVA: Yes to Start-Up 7

10 YUVA: Unleash Regulatory Enablers for supporting Start-ups 8

11 YUVA: Vibrancy in Education System 9

12. YUVA: Access to Funding and Incubation Support 10

13. Exit Conditions 13

14. Protection of action taken in good faith 13

De nitions 15
 BIHAR Start-Up Policy-2022

Government of Bihar
Department of Industries
Resolution
1. 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 play a key role in economic growth. This can be realized by promoting innovation and
creating an ecosystem that nurtures start-ups from concept to commissioning. Apart from creating
jobs, start-ups focus on innovation to create next gen solutions which bring economic dynamism.
1.2 Government of Bihar formulated and noti ed Bihar Start-up Policy, 2016 to create an independent
and 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 implementation of this policy.
1.3 In order to further boost the ecosystem and to make it more holistic and bene cial for the youth and
entrepreneurs of the state, the Government has approved the Bihar Start-up Policy, 2022. This policy
also aims to broad base the coverage, with an effective and faster implementation process.

2. Vision
The vision for the Bihar Start-up Policy, 2022:
To enable Bihar 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 inclusive growth
in the State

3. Policy Period
Bihar Start-up Policy, 2022 will be effective from the date of noti cation. The said date shall be
considered as effective date of this policy from which its provisions shall come into force and shall
be applicable for 5 years.

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 as well as matching grants to increase their viability.

01
 BIHAR Start-Up Policy-2022

4.3 Facilitate development of Entrepreneurship Development Centers and Entrepreneurship

Facilitation Centers to increase awareness and promote entrepreneurship amongst the youth.
4.4 Encourage Entrepreneurship through education by introducing learning modules in the University/
Schools, MOOC (Massive Open Online Courses), internships amongst others.
4.5 Facilitate development of new and support expansion of existing Incubators/common infrastructure
spaces/Co-working spaces
4.6 Provide a one stop comprehensive portal for start-ups to access nancial support (SEBI registered-
Alternate Investment funds, Empanelled Angel Investor, etc.), regulatory support, Network of
mentors and Empanelled Project Management Consultants.
4.7 Enable hassle-free and time bound statutory clearances for start-ups.
4.8 Provide appropriate institutional support to enable the nurturing of Start-ups including mentoring,
hand holding and trainings/orientation visits.
4.9 Any other activity which will enable and create Start-up ecosystem in the state.

5. Eligibility of Start-Ups in Bihar

An entity shall be considered as a Start-upon ful lling the following conditions:
i. Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private
limited company (as de ned in the Companies Act, 2013) or registered as a partnership rm
(registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the
Limited Liability Partnership Act, 2008).
ii. Turnover of the entity for any of the nancial years since incorporation/ registration has not
exceeded one hundred crore rupees.
iii. Entity is working towards innovation, development or improvement of products or processes or
services, or if it is a scalable business model with a high potential of employment generation or
wealth creation.
iv. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be
considered a 'Start-up'.
v. Provided Start-up must be incorporated or registered in Bihar and having of ce in Bihar.
vi. Provided further applicable taxes from the operations of the company are payable in Bihar.

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. Bihar Start-up Fund Trust (BSFT) chaired by Development Commissioner, Government of Bihar
for deliberation on the policy matters, inter-departmental collaboration and bi-annual progress
review on the policy implementation outcomes.

02
 BIHAR Start-Up Policy-2022

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 PSC for
decision making.
c. Preliminary Scrutiny Committee (PSC) to oversee the work of Start-up support unit as well as
decision making for effective implementation of the Start-up policy.
d. Start-up Support Unit (SSU) to act as single point of contact for all 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 BSFT is as follows:
Sl. Members Designation
1 Development Commissioner Chairperson
2 Principal Secretary, Industries Member Secretary
3 Principal Secretary, Finance Member
4 Principal Secretary, Planning Member
5 Principal Secretary, Science & Technology Member
6 Two eminent experts in the Start-up eld Member
nominated by the Department of Industries
7 Director IIT Patna, Director CIMP Member
8 2 Representative of Associations, Member
Organisations and Institutions promoting
entrepreneurship to be nominated by the
Department of Industries
9 Representative of Financial Management Member
Company/ Society
6.1.1 Role of Bihar Start-up Fund Trust
a. Monitoring and review of Start-up policy and its implementation

b. Amendments and/or modi cations, if any, required in the policy

c. Approve major issues like rating system of start-ups, detailed guidelines for Start-up approvals and
handholding etc.
d. Liaison with Central and other State Departments for effective implementation of the policy, if
required
e. Any other issues referred by SMIC.

03
 BIHAR Start-Up Policy-2022

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:

Sl. Members Designation

1 Principal Secretary, Industries Chairperson
2 Director to be noti ed by the Department of Industries Member Secretary
3 Representative of Finance Department Member
4 Representative of Science & Technology Department Member
5 Representative of IT Department Member
6 2 Representative of Incubators to be Member
nominated by the Department of Industries
7 2 Representatives of Associations, Member
Organisations and Institutions promoting
entrepreneurship to be nominated by the
Department of Industries
8 Nodal Of cer of SSU Member

SMIC shall meet frequently and gap between two consecutive meetings shall not be more than 45
days.
6.2.1 Role of Start-up Monitoring and Implementation Committee (SMIC)
a. Overall Implementation of the Policy

b. Approval for certi cation 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, EDC etc
d. To approve matching grants to start-ups, success-grants etc.

e. Liaison with other state Departments for effective implementation of the policy

f. Any other issues related to the effective implementation of Start-up policy.

6.3 Preliminary Scrutiny Committee (PSC)
A Preliminary Scrutiny Committee shall be constituted under the Chairmanship of Director to be
noti ed by the Department of Industries, Government of Bihar. The composition of Preliminary
Scrutiny Committee shall be:

04
 BIHAR Start-Up Policy-2022

Sl. Members Designation

1 Director to be noti ed by the Department of Industries Chairperson
2 2 Representatives of Incubators to be Member
nominated by the Department of Industries
3 2 Representative of Associations, Member
Organisations and Institutions promoting
Entrepreneurship to be nominated by the
Department of Industries
4 Nodal Of cer of SSU Member-Secretary
6.3.1 Role of Preliminary Scrutiny Committee
a. Approve, tag and refer the applications shortlisted by PMA/ 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. Providing hand-holding support to start-ups through various stages

05
 BIHAR Start-Up Policy-2022

e. Act as single window system for getting all statutory clearances for start-ups
f. Act as Secretariat for implementation of Start-up policy
g. Organise events, sessions, trainings, visits and other activities for promoting the Start-up culture
6.5 Third Party Agencies
Third Party Agencies (TPA) may be taken on board for:
a. Design of the rating system for start-ups
b. Evaluation of applications as per the approved rating system
c. Recommending certi cation of start-ups
d. Recommending seed funding / matching grants etc as per the approved criterion based on
rating achieved by the start-ups.
6.6 Financial Management Company
An existing or new Company of Government of Bihar may be made Financial Management
Company to carry out the nancial operations under this policy. Financial Management Company
shall disburse incentives, loans and other nancial assistance to the Start-ups as decided by SMIC. It
shall carry out the following activities:
a. Asset Management of the Trust

b. Facilitation and assistance for funding to Start-ups such as seed grant, early stage and scale-up
funding and other funding support stated in the 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. Facilitate Investment related decisions under the policy in a time bound manner

7. Application Process and Certi cation of Start-ups

a. The Start-ups shall submit their application online along with detailed description of idea in the
prescribed form through the Online Start-up Portal.
b. Online applications received shall be scrutinized and processed by SSU. The SSU will short list the
eligible start-ups as per criterion approved by the Start Up Fund Trust. The SSU will also provide
hand holding support to the Start-up applicants to improve their proposals.
c. The short-listed applications will be approved by the Preliminary Scrutiny committee headed by
Director to be noti ed by the Department of Industries for referring them to the incubators.
d. After preliminary examination the shortlisted applications shall be tagged to the Incubators. The
Incubators will provide hand-holding support and after the incubation process shall prepare a
proposal for Start-upon the following issues:

06
 BIHAR Start-Up Policy-2022

i. Business Plan
ii. The amount of funding assistance required at various stages
iii. Any requirement of common infrastructure or other infrastructure created under this policy
iv. Any assistance as envisaged under this policy
e. The list of such recommendations/proposals received from incubators shall be evaluated by 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 recommendations
and certify Start-ups as per the rating criterion.
g. Financial incentives and other support shall be provided to start-ups based on their categorization
through rating mechanism. The detailed guidelines in this regard will be nalized with approval of
BSFT.

8. YUVA: The action plan to support start-ups and create an enabling

eco- system.
8.1 Bihar Start-up Policy has been designed on following four pillars (YUVA)
Yes to Start-ups (Awareness, Networking and Mentoring Campaign)
Unleash Regulatory Enablers for Supporting Start-ups
Vibrancy in Education System to encourage and facilitate Start-ups
Access to nancing & incubation support

9. YUVA: Yes to Start-Up

9.1 Promoting Awareness Udyami Bihar, Samridh Bihar Campaign and Facilitating
Networking Platform for Start-ups
Government is committed to encourage entrepreneurship as an education and career both, for the
youth across all economic and social segments of the population. In order to inculcate
entrepreneurial culture amongst youth, Government shall:
a. Launch Start-up outreach and awareness campaign Udyami Bihar, Samridh Bihar at State level in
collaboration with Start-up stakeholders
b. Recognize and promote achievements of successful local start-ups by organizing 'Entrepreneurship
Awards'
c. Organize state level challenges/ business plan competitions

d. Support business networks (Industry Associations/Organizations promoting Start-ups) to organize

Start-up awareness activities such as Start-up fairs

07
 BIHAR Start-Up Policy-2022

9.2 Assistance for Idea Development

Conducive Start-up ecosystem enables youths to convert their ideas into meaningful propositions. A
proper guidance system is essential for youth to express and enhance their ideas. In order to spread
awareness and provide guidance to potential entrepreneurs, State shall provide nancial 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 Facilitation Centers at Educational & Professional Institutes.

9.2.1 These Cells/Centers shall:

a. Organize various promotional events to disseminate awareness about entrepreneurship and promote
Start-up culture in the state under Udyami Bihar, Samridh Bihar Campaign .
b. Provide assistance to students/potential entrepreneurs for presenting and enhancing their idea to
various stakeholders of Start-up ecosystem viz. Government, education institutes, incubators,
industry experts, legal, tax and business consultants.
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. A 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 speci ed timelines.
b. Registering with relevant authority and lling 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

08
 BIHAR Start-Up Policy-2022

professional experts, incubators, academia, empanelled Project Management Consultants and angel
investors, SEBI-registered AIFs (Alternate Investment funds) and other stakeholders.

e. Empanel mentors of networks to start-ups having potential for growth and scalability.

f. Accessing various State Government Schemes and Incentives available for Start-ups.

10.2 Optimizing Regulatory Framework-Enabling regulatory environment for Start-up

Ecosystem

Starting up a business involve getting various stages of departmental approval and clearances. Most
of the start-ups are unaware of the complex policies and regulatory 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 minimizing inspections
and encouraging self- certi cations.

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, FSSAI, Building Plan, Fire
Fighting) shall be required to be obtained by the Start-up if its nature of business/activity may lead to
potential threat to life and safety, in such cases Government shall bear the cost of license(s).

b. Start-ups shall be exempted from inspections by Government Regulatory Agencies for a period of
ve years unless there is threat to life and safety. In case a unit has to be inspected for certain reasons,
the permission of the District Magistrate shall be 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 preference to Start-ups in

procurement process for products/ services.

e. State Government shall endeavour to allot 10% of spaces in forthcoming industrial parks, SME
Clusters and Hub for Start-ups/Incubators/ 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 importance of reforms in
education for creating entrepreneurial spirit amongst students.

In order to promote Start-ups culture and innovation in youth of Bihar, Government shall
facilitate/recommend following interventions:

09
 BIHAR Start-Up Policy-2022

a. Embed Entrepreneurship modules in high schools, university, skill training, and vocational training
institutes' curriculums/ programs. Education institutes will be suggested to introduce Massive Open
Online Courses (MOOCs) as electives and make internships/apprenticeship mandatory.

b. Education / Professional Institutes shall be supported to formulate Entrepreneurship Facilitation

Centre to guide and assist students to pursue entrepreneurship.

c. Organize Business/Innovation Idea Competitions amongst students. Shortlisted ideas shall be

provided support for prototyping and will be showcased in Start-up Fest organized by the State.

d. Organize social innovation challenge through Entrepreneurship Development Cells to provide

challenge grant to 20 social innovators to support their ideas.

12. YUVA: Access to Funding and Incubation Support

12.1 Facilitating Incubation Centers for Start-ups

Incubation centres are crucial for nurturing promising Start-ups. They provide access to mentoring
network, market network, shared physical infrastructure etc. Creation of Physical Infrastructure
generally requires large capital investments. Considering this, following incentives/ nancial
assistance shall be provided to start-ups:

a. Financial assistance for setting up of new incubators (both physical and virtual) and expanding State
supported Incubators.

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 nancial assistance to match the funding raised by Incubator(s) from
Government of India and Multilateral donor agencies on 1:1 basis 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.

10
 BIHAR Start-Up Policy-2022

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 Cost and on chargeable basis for speci ed periods
as per norms decided by Bihar Start-up Fund Trust.

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 be further
expanded into virtual incubator to widespread its reach.

12.5 Funding Support to Start-ups

Funding support shall be provided to Start-ups in various stages of its business cycle.

Validation Stage:

12.5.1 Seed Funding Support

A Seed Grant of up to Rs 10 Lakhs per Start-up as interest free loan for 10 years shall be provided to
start-ups. This nancial assistance shall be released on achieving milestones/phases and
performance parameters as de ned in the rating system. The nancial assistance may also be
provided to start-ups for validation of idea, prototype development, assistance towards travelling
costs and carrying out eld/ 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 10 years.

Commercialization Stage:

12.5.2 Early Stage Funding Support

a. Free of cost Valuation for Start-ups.

b. Facilitate access to Angel Investors.

c. A success fee @2% of investment shall be provided to start-ups for mobilizing investments from

11
 BIHAR Start-Up Policy-2022

state registered angel investors towards early stage funding.

d. Matching Support: A nancial 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 noti ed by the SMIC from time
to time.

e. Assistance to enrol and participate for Acceleration Program: Assistance up to Rs. 3 Lakhs per Start-
up to 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 by trust in the VC Fund) in start-ups located in Bihar.

b. SMIC shall facilitate listing and public issue of Start-ups in collaboration 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 bene ts available under various schemes of Government of
India.

All the incentives shall be availed based on categorization of start-ups through rating mechanism.

12.6 Zero Cost for ling patents Domestic and Foreign

Intellectual Property (IP) is an invaluable business tool for start-ups, or entrepreneurs, providing
initial start to one's business. Investors weigh IPs heavily and create good value for venture. To
encourage the registration of IPRs (Intellectual Property Right) by Start-ups and provide facilitation
support for protection and commercialization of IPRs, Government shall:

a. Bear all costs associated towards ling domestic patents.

b. Provide additional nancial assistance in form of reimbursement for awarded foreign patents
towards ling fees.

12.7 Additional incentives to SC/ST /Women /Differently- Abled

Incentives listed below shall solely be applicable to start-ups which are fully owned by any one
person of this category or a group of persons de ned in this category. Efforts shall be made to
identify persons belonging to the Scheduled Castes and Scheduled Tribe and promote
entrepreneurship among them.

12
 BIHAR Start-Up Policy-2022

12.7.1 SMIC may set up Project Management Units to speci cally handhold them in setting up their
ventures.

12.7.2 Entrepreneurs under this category will avail additional grant / exemption /subsidy than the limit
xed under clause12.5.1 and 12.5.2 of this policy

a. Woman Enterprise-additional 5%

b. SC/ST-additional 15%

c. Differently Abled -additional 15%

12.7.3 Additionally, 22% of the total corpus for funding start-ups shall be reserved for SC/ST bene ciaries.

12.7.4 Based upon the requirement, the BSFT may relax the eligibility criteria, as stated in clause 5, for
certifying start-ups belonging to SC/ST/ women and differently abled.

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 bene ts from or derived under this policy. Legal action shall be
initiated to recover all nancial assistance provided to such an entity.

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 and
guidelines for exit will be framed by SMIC for channelizing investments into the start-up. When the
Government or its representative entity exits its investment; the right to nominate a representative
director on the board of the Start-up will also be extinguished.

14. Protection of action taken in good faith

a. No suit, prosecution or other legal proceeding shall lie against Trust, Financial Management
Company/ Society or any of cial involved in the implementation of this policy in respect of
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.

b. No suit or other legal proceeding shall lie against the Trust, Financial Management Company or any
of cial involved in the implementation of this policy for a damage caused or likely to 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 language version shall be binding in all respect and shall prevail

13
 BIHAR Start-Up Policy-2022

17. This policy shall come into effect from the date of issue of the policy in Bihar Gazette noti cation
and shall remain in operation till 5 years from the date of such noti cation.

18. The proposal has been approved by the State Cabinet in the form of item number-13 on 17.06.2022.

By the order of the Governor of Bihar

(Sandeep Poundrik)
Principal Secretary,
Department of Industries, Bihar, Patna.
Memo No: 1502 /Patna, Dated: 27.06.2022
File No. - 4Tech./Start-up policy amendment/155 /2021

14
 BIHAR Start-Up Policy-2022

Annexure

De nitions
Acceleration Program: An Acceleration programs is typically 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 accelerating the
growth of the Start-up.

Angel 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 convertible debt/equity.

Alternate Investment Funds: Alternative investment funds (AIFs) are de ned 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), in the 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 any other sectoral regulators in
India-IRDA, PFRDA, RBI.

Category I Alternate Investment Funds: Category I Alternate Investment Funds are de ned 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, social venture funds, infrastructure
funds and such other Alternative Investment Funds as may be speci ed.

Commercialization Stage: Commercialization Stage refers to an integral stage in lifecycle of Start-up

wherein Start-ups scale up their business and commercialize product/ services.

Differently abled: As de ned in The Rights of Persons with Disabilities Act, 2016 and any other statue
enacted for the welfare 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
(under The Limited Liability Partnership Act, 2008).

Financial Management Company/ Society: means as per para 6.6.

Fund Manager: Financial Management Company/ Society shall appoint one or more fund managers for
managing the fund and activities mentioned under this policy.

Government: means Government of Bihar in this Policy unless otherwise speci ed.

Idea Stage: Idea Stage refers to an integral stage in lifecycle of Start-ups wherein feasibility analysis of the
idea is performed to evaluate the success/failure of the concept.

15
 BIHAR Start-Up Policy-2022

Incubator: Incubator means physical spaces which helps entrepreneurs to convert their ideas in becoming
successful and pro table ventures by supporting them in business planning, mentoring, 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: Registered refers to an entity registered with Registrar of Companies (RoC) Bihar.

Seed Grant: Seed Grant is a nancial assistance provided to Start-ups to develop a prototype product and
generate suf cient investor interest for subsequent rounds of funding. Terms and conditions of the nancial
assistance are mentioned in para 12.5.1.

Scheduled Caste (SC) /Scheduled Tribes (ST) Enterprise: Enterprise fully owned by SC/ST. Partial
shareholding of SC/ST inan enterprise shall not be treated as SC/ST enterprise.

Start-up Support Unit (SSU): means as per para 6.4.

Start-up Monitoring and Implementation Committee (SMIC): means as per para 6.2.

State Supported Incubators/ Incubation Center: means incubator(s)supported by Government of Bihar

and/ or Government of India.

TBI: A Technology Business Incubator (TBI) as recognized by Department of Science and Technology,
Government of India.

Trust/ Bihar Start-up Fund Trust: Trust means a nodal agency constituted by Department of Industries,
Government of Bihar under The India Trusts Act, 1882 for the purpose of policy review and implementation
of this Policy.

Validation Stage: Validation Stage refers to an integral stage in lifecycle of Start-ups wherein the
product/service is produced and delivered in a limited capacity which can be scaled up upon the 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 in return
of equity shareholding.

Woman Enterprise: An enterprise headed by woman where 100% stake is owned by woman. Partial
shareholding of Woman in an enterprise shall not be treated as Woman enterprise.

16
 vf/kd tkudkjh ds fy, laidZ djsa%
m|ksx foHkkx] fcgkj ljdkj
fodkl Hkou] iVuk & 800 015 (fcgkj)
https://state.bihar.gov.in/industries
m|ksx fe=
https://www.udyogmitrabihar.in | Qksu : +91 (612) 2547695
VkWy Ýh uacj: 1800 345 6214
For Start-up registration log on to: https://startup.indbih.com