Special Legal Provisions for Women-Entrepreneurs: Empowering Change and Innovation

Empowering Women Entrepreneurs: Legal and Tax Benefits Drive Innovation and Change for Women-Owned Startups.

Special Legal Provisions for Women-Entrepreneurs: Empowering Change and Innovation

India is undergoing a startup revolution, and women are at the forefront of this transformation. From revolutionizing tech solutions to creating sustainable business models, women entrepreneurs are breaking stereotypes and paving the way for future generations. However, their path is not without obstacles. To address these challenges and promote inclusivity, the government has introduced special legal provisions tailored to empower women-led startups.These provisions are more than just policies—they are lifelines, providing women entrepreneurs with the support they need to build successful ventures. Let’s dive into these unique legal benefits and how they’re shaping the landscape for women entrepreneurs in India.

1. Financial Boost through Priority Lending

For many women, access to credit is one of the biggest hurdles when starting a business. Recognizing this, the Reserve Bank of India (RBI) has included women entrepreneurs under its Priority Sector Lending (PSL) guidelines. This ensures that banks allocate a specific portion of their loans to women-led businesses.

How It Works: Women-owned startups, especially in the micro and small enterprise sectors, receive loans at lower interest rates.

Impact: For entrepreneurs like Meera, who owns a small-scale manufacturing business, this provision has made it easier to secure funding and scale operations without excessive financial stress.

2. Tax Benefits for Women Entrepreneurs

Tax incentives are a game-changer for women-led startups. Startups registered under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, are eligible for tax rebates and exemptions.

Example: Women-led businesses in Special Economic Zones (SEZs) can avail of tax holidays for up to three years, allowing them to reinvest their savings into growth and innovation.

Additional Support: Businesses in rural and underdeveloped areas often receive added tax benefits, promoting entrepreneurship in less privileged regions.

3. Intellectual Property Rights (IPR) Support

Innovation lies at the heart of many startups, and protecting these innovations is crucial. The government provides special provisions for women entrepreneurs to safeguard their intellectual property.Scheme for Facilitating Startups Intellectual Property Protection (SIPP):** Offers women-owned startups significant discounts on patent, trademark, and copyright filing fees.

Fast-Track Mechanism: Ensures quicker processing of IP applications for startups, encouraging women to protect their ideas and stay competitive.For instance, Kavita, a designer from Mumbai, successfully trademarked her brand under the scheme, gaining legal protection against imitation.

4. Simplified Business Registration and Compliance

To reduce the burden of bureaucracy,

The Startup India Initiative offers women entrepreneurs simplified processes for business registration and compliance.

Self-Certification: Women-led startups can self-certify compliance with labor and environmental laws for the first three years, saving time and resources.

Fee Waivers: Rebates on patent fees and other regulatory costs make it easier for women to establish and operate their startups.

5. Women-Specific Government Schemes

Several government schemes are dedicated to empowering women entrepreneurs with legal, financial, and infrastructural support. Some key initiatives include:

Stand Up India Scheme: Provides loans between ₹10 lakh and ₹1 crore to women entrepreneurs starting greenfield ventures.

Udyogini Scheme: Offers financial assistance and training to women in rural areas, enabling them to start small-scale businesses.

TREAD Scheme: Focuses on training and funding women entrepreneurs through NGOs, encouraging group entrepreneurship.

6. Reserved Quota in Public Procurement

The Public Procurement Policy for Micro and Small Enterprises (MSEs), 2012, reserves at least 3% of annual procurement by central ministries and public sector units for women-owned businesses.

Why It Matters: This quota provides women entrepreneurs with access to government contracts, ensuring steady business and long-term growth opportunities.Priya, who runs a furniture manufacturing unit, leveraged this policy to secure a government contract, giving her business the boost it needed.

7. Creating Safe Workplaces

For women-led startups, ensuring a harassment-free workplace is critical. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, mandates that startups with more than 10 employees establish an Internal Complaints Committee (ICC).

Support: The government provides resources to help startups comply with these requirements, fostering safe and inclusive work environments.

Impact: Entrepreneurs like Ritu, who employs 20 workers in her textile business, have been able to build trust and productivity through these safeguards.

8. Training and Capacity Building

Skill development is a cornerstone of entrepreneurial success. Under the Skill India Mission, the government offers specialized training programs for women entrepreneurs.

Legal Literacy Programs: Help women understand business laws, intellectual property rights, and labor regulations.

Technical Training: Provides hands-on workshops in technology and management, equipping women to tackle real-world challenges effectively.

Real Impact: How These Provisions Are Changing Lives

These legal provisions are not just about compliance—they are enablers of growth and empowerment. Women-led startups are thriving in various sectors, creating jobs, driving innovation, and contributing to India’s GDP.

Success Stories:**

·       20,000+ women entrepreneurs have benefited from the Stand Up India Scheme.

·       Women account for 14% of India’s startup founders, a number that’s steadily rising.

·       Government procurement policies have enabled thousands of women entrepreneurs to access large-scale contracts.

What More Can Be Done?

While these provisions have made significant strides, there’s room for improvement:

1. Awareness Campaigns: Many women remain unaware of these benefits. Targeted outreach and digital campaigns can help bridge this gap.

2. Mentorship Programs: Experienced entrepreneurs and legal experts can guide women in navigating complex laws and regulations.

3. Streamlined Processes: Simplifying application and compliance procedures further can encourage more women to explore entrepreneurship.

A New Era for Women Entrepreneurs

Special legal provisions for women-owned startups are transforming India’s entrepreneurial ecosystem. They’re breaking barriers, leveling the playing field, and empowering women to turn their ideas into reality.Every woman-led startup represents more than just a business—it’s a story of resilience, courage, and determination. By fostering this environment of support, India is not just promoting gender equality but also unlocking immense economic potential.

As we continue to champion these policies, the future of women entrepreneurs looks brighter than ever—where their dreams are not just supported, but celebrated.

Disclaimer: This article is provided solely for informational purposes and should not be considered as legal advice. For accurate legal guidance, please consult a qualified professional.

Tanya Shree

This article was written by Tanya Shree A.O.R. of Supreme Court of India.