Bihar Start-Up Policy, 2022

Bihar notified its first Start-up Policy in 2016, amended in 2017, backed by a Trust with an initial corpus of ₹500 crore. The 2022 Policy broadens that coverage with a faster and more holistic implementation process, aiming to make Bihar the most preferred destination for start-ups by leveraging local youth. It takes effect from Gazette notification and runs 5 years; work already underway under the 2017 Policy is deemed covered. The portal is startup.indbih.com.

Eligibility

• •Up to 10 years from incorporation or registration, as a private limited company, registered partnership firm or LLP.
• •Turnover in any financial year since incorporation has not exceeded ₹100 crore.
• •Working towards innovation, development or improvement of products, processes or services, or a scalable business model with high employment or wealth-creation potential.
• •Not formed by splitting up or reconstructing an existing business.
• •Must be incorporated or registered in Bihar, with an office in Bihar and applicable taxes payable in Bihar.

Additional incentives for category enterprises

The Policy rests on four pillars — Yes to Start-ups, Unleash Regulatory Enablers, Vibrancy in Education System, and Access to Funding & Incubation.

• •Awareness and mentoring: Udyami Bihar and Samridh Bihar campaigns, Entrepreneurship Awards, state-level Business Plan Competitions and Start-up Fairs; Entrepreneurship Development Cells in divisional towns and Facilitation Centres at educational and professional institutes.
• •Regulatory enablers: a comprehensive Start-up Bihar Portal with registration tutorials, standardised State compliance forms and integration with GoI Start-up portals.
• •Start-ups are exempted from licensing and registration under various State Acts for 5 years — statutory licences such as Drug Licence, FSSAI, Building Plan and Fire Fighting are still required where public safety is at stake, with Government bearing the licence cost.
• •Exemption from Government regulatory inspections for 5 years unless there is a threat to life or safety, in which case the District Magistrate's permission is required; annual self-declaration in the prescribed format.
• •Preference to start-ups in State procurement, and 10% of space in upcoming industrial parks, SME clusters and hubs reserved for start-ups, incubators and common infrastructure.
• •Education: entrepreneurship modules embedded in school, university, skill and vocational curricula; MOOCs as electives; mandatory internships; student business and innovation competitions with prototyping support; and challenge grants to 20 social innovators.

1. 1Submit an online application with a detailed idea description via the Start-up Portal.
2. 2The SSU scrutinises and shortlists eligible applications per BSFT-approved criteria, with hand-holding support to improve proposals.
3. 3The PSC approves shortlisted applications and refers them to incubators, which prepare a proposal covering the business plan, staged funding requirement and infrastructure needs.
4. 4A Third Party Agency evaluates incubator recommendations and assigns a rating; the SMIC then certifies the start-up per the rating criterion, and incentives follow the rating-based categorisation.