Bihar Start-Up Policy 2022

The Bihar Start-Up Policy 2022 builds on the 2016 and 2017 policies to broaden ecosystem coverage and speed up implementation for the State's youth and entrepreneurs, financed through the ₹500 Crore Bihar Start-up Fund Trust (BSFT).

Vision & Key Objectives

Vision: '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.'

• •Promote entrepreneurship education via 'Udyami Bihar, Samridh Bihar' campaigns.
• •Support early stage start-ups with seed grants and matching loans.
• •Facilitate Entrepreneurship Development Cells (EDCs) and Facilitation Centres (EFCs).
• •Establish state-of-the-art incubation, common-infrastructure, and co-working spaces.
• •Enable hassle-free, time-bound single-window clearances.

A. Validation Stage — Seed Funding

Seed Grant: Up to ₹10 Lakh per start-up as an interest-free loan for 10 years, released based on Rating Agency assessment and performance milestones. Repayable after 10 years.

B. Commercialization Stage — Early & Scale-Up Funding

• •Free Valuation: Free-of-cost valuation services for certified start-ups.
• •Angel Success Fee: 2% success fee on investments mobilised from registered angel networks.
• •Matching Loan: Matching funding up to the sum invested by Angel Groups and Category-I AIFs, provided as an interest-free loan.
• •Acceleration Program: Reimbursement up to ₹3 Lakh for enrolling in recognised national/international acceleration programs.
• •Public Listing: SMIC participates in AIFs/VCs and facilitates stock exchange listing (BSE/NSE).

C. Incubation & Intellectual Property

• •Incubator Reimbursement: Reimburse cost of incubating a start-up up to ₹2 Lakh per incubatee to recognized incubators.
• •Patent Support: State bears 100% cost of domestic patent filing, plus reimbursement for foreign patent awards.

D. Special Category Extra Incentives

• •License Exemption: Exemption from registrations under various State Acts for 5 years (except safety-critical licenses like FSSAI, Fire-safety, where licensing costs are reimbursed).
• •Inspection Exemption: Regulatory inspections are exempted for 5 years; any inspection requires prior permission from the District Magistrate.
• •Public Procurement: Preference in Government and PSU tenders.
• •Space Allotment: 10% preference space in upcoming industrial parks and hubs for start-ups and incubators.