R&D Reimbursement Scheme for Goan Startups: Up to ₹5 Lakhs Annual Funding

The R&D Reimbursement Scheme is an initiative by the Department of Information Technology, Electronics and Communications, Government of Goa, under the Start-up Policy 2017. This scheme is designed to promote innovation among local start-ups by reimbursing 50% of their R&D expenses, including the salaries of PhD holders employed by the start-up. The reimbursement is available for a period of two years, subject to a cap of ₹5,00,000 per annum, with the salary component not exceeding ₹2,00,000.

Benefits

• Reimbursement:

  • 50% of R&D expenses, including PhD holders’ salaries, will be reimbursed for two years.
  • The reimbursement is capped at ₹5,00,000 per annum.
  • The salary component eligible for reimbursement must not exceed ₹2,00,000.

• Slots:

  • A maximum of 100 start-ups can avail of this benefit each year.

• Validity:

  • Benefits can be availed bi-annually or annually.

• Disbursal:

  • Once approved by the Start-up Promotion Cell (SPC), the sanctioned amount will be disbursed within 60 days from the date of approval.

Note: Benefits under this scheme are not considered an entitlement; the SPC reserves the sole right to accept or reject applications.

Eligibility

• Local Startup:
  • The scheme is applicable only to Goans and local start-ups.
  • The applicant must be a local start-up certified by the Start-up Promotion Cell (SPC) and possess a valid start-up certificate number.
• Employee Criteria:
  • The employees whose salaries are to be reimbursed must be hired for a minimum period of 12 months.
  • These employees must hold a PhD or equivalent degree from a government-recognized institute.
• R&D Stage:
  • The start-up should be in the R&D stage, developing technology/products with a working prototype.
• Expense Conditions:
  • Only expenditures incurred after the notification of the Goa Start-up Policy 2017 and within its validity period will be considered.
  • Expenses must be paid digitally; exceptions are subject to SPC’s due diligence.
  • Eligible expenses will be determined using the “Accounting Standard 18 on Research and Development.”

Application Process

Online Process:

1. Registration:
   • Visit the Official Website of the Goa Startup Mission.
   • Verify your email ID and mobile number using OTP.
   • Complete the registration form by providing mandatory details (Country, Name, Date of Birth, Address, PIN Code, Gender, etc.).
   • Create a login name and strong password, read the Declaration and Terms & Conditions, and then click “Register/Signup.”
2. Login and Apply:
   • Log in using your credentials.
   • Navigate to the online application form for the scheme.
   • Fill in all mandatory fields and upload required documents (self-attested if needed).
   • Submit the application and note the application reference number for tracking.

Alternative Process:

1. Print and Fill:
   • Download and print the proforma application form.
   • Fill in all mandatory fields and attach copies of the required documents (self-attested if required).
2. Submission by Email:
   • Send the completed form along with the documents to the SPC via Email at: [email protected]

Note: Applications must be submitted within 6 months of incurring the eligible expenditure.

Documents Required

1. Copy of the Aadhaar Card of the Director/CEO.
2. Documents of PhD salaried employees (proof of qualification).
3. HR letter certifying that the employees’ contracts fulfill the policy conditions and work profile.
4. Employment contract (minimum 12 months).
5. Salary slips of the concerned employees.
6. Bank certification or bank account statement showing salary debits.
7. Research proposal detailing the relevance and application of the research.
8. Copy of research work.
9. Original proof of payment for R&D expenses as per Accounting Standard 18.
10. Additional forms and documents as specified in Annexure 1.

Note: The bank accounts of the Directors and employees must be linked to Aadhaar.

Frequently Asked Questions (FAQs)

• What happens if an applicant is found guilty of misrepresentation or fraudulent activity?
  Misrepresentation or fraud will result in disqualification from the scheme.

• Are there any additional requirements regarding research work?
  The start-up must be in the R&D stage with a working prototype and a clear focus on technology/product development.

• What types of expenses are covered?
  The scheme covers 50% of R&D expenses, including PhD holders’ salaries (not exceeding ₹2,00,000), subject to an annual cap of ₹5,00,000.

• What role does the SPC play?
  The Start-up Promotion Cell (SPC) evaluates applications and reserves the right to accept or reject them based on eligibility and due diligence.

• When can approved amounts be disbursed?
  Disbursal occurs within 60 days of approval by the SPC.

• How long does it take for the SPC to evaluate and approve/reject applications?
  Evaluations and decisions are typically communicated within 45 days of application receipt (subject to internal processing timelines).

• How often can start-ups avail of the benefits?
  The benefits can be availed on a bi-annual or annual basis.

• What is the maximum annual cap for reimbursement?
  The maximum reimbursement is ₹5,00,000 per annum.

• Are there specific domains required for eligibility?
  The startup must be in the R&D stage and developing technology/products as per the Goa Start-up Policy 2017.

• Is this benefit guaranteed for all eligible start-ups?
  No, benefits are not an entitlement; the SPC has the right to accept or reject applications.

• How many start-ups can avail of this benefit each year?
  A maximum of 100 start-ups can be awarded each year.

Sources and References

• Guidelines
• Application Form