Jharkhand Startup Policy: Sustenance Allowance

• Jharkhand-registered startups under 5 years old seeking monthly sustenance allowance.

About this scheme

The Jharkhand Startup Policy: Sustenance Allowance program offers crucial financial support to eligible startups registered within the state of Jharkhand. This initiative is spearheaded by the Department of Information Technology and E-Governance, Government of Jharkhand, an entity dedicated to advancing technological development and digital governance across the region. The program operates as a key component of Startup Jharkhand, a comprehensive government effort established to nurture a thriving entrepreneurial ecosystem, stimulate innovation, and generate employment opportunities throughout the state. Through this program, qualifying startups can receive a monthly stipend of Rs. 5,000 for each active founding team member, available for up to three members per startup, for a maximum duration of twelve months. This structure allows for a significant total potential support of Rs. 1,80,000 per startup over a year, providing non-dilutive capital essential for early-stage development and operational stability. The financial assistance is designed to alleviate initial operational costs and support the living expenses of founders, enabling them to dedicate their full focus to developing their ventures. Funds are disbursed on a consistent monthly basis, ensuring a steady stream of resources for product development, market validation, and strategic growth. This program underscores the government's commitment to reducing the financial burden on nascent enterprises and fostering a conducive environment for innovation without requiring equity. This strategic support is crucial for fostering innovation and encouraging sustained growth within Jharkhand's startup ecosystem, helping to position the state as a leading hub for new ventures.

Who can apply

• The applicant startup must be officially registered within the state of Jharkhand to be considered for this sustenance allowance. This ensures the program directly benefits the local economy and contributes to job creation within the state.
• The startup's annual turnover must not exceed Rs. 25 Crore as per its latest financial statements. This criterion focuses support on early to mid-stage startups, preventing larger, more established companies from benefiting.
• The startup should have been incorporated less than 5 years ago from the date of application. This age limit targets startups in their crucial formative years, when financial stability is often most precarious.
• The startup must have a maximum of 50 employees at the time of application. Similar to the turnover cap, this limit ensures the program supports small and emerging businesses.
• The startup must be actively operated by full-time founder(s) who are dedicated to working on the venture. This requirement emphasizes the commitment of the founding team to making their startup a success.

Eligible entity types: Private Limited, LLP

Benefits & funding

• Monthly stipend of Rs.
• 5,000 per founder (up to 3) for 12 months, totaling Rs.
• This non-dilutive capital alleviates operational costs and living expenses, fostering product development, market validation, and growth without requiring equity.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with Department of IT and E-Governance, Government of Jharkhand, in your own name.

1. 1

   Applications are submitted entirely online through the Startup Jharkhand portal with required eligibility documentation including DPIIT recognition and incubator association proof.

2. 2

   Applications are reviewed and verified by the implementing authority under the Jharkhand Startup Policy 2022.

3. 3

   Approved founders receive a monthly sustenance allowance for the prescribed support period.

Documents checklist 3

• Startup Registration Document
• Founder ID Proofs
• Bank Details Document

Need help getting these in order? IncorpX provides assistance for incorporation, DPIIT recognition, MSME and GST registrations along with document preparation.

Frequently asked questions