GRAFFITI #3
DRAFT DESIGN (AMENDMENT RULES), 2019 – A BOON TO STARTUPS:
- Image Courtesy – RBC Royal Bank.
The Ministry of Commerce and Industry has published draft Design (Amendment Rules), 2019 in its online portal for public’s objections and suggestions. Following are the highlights of the said draft amendment rules:
1. Startup is now defined under the proposed draft Design Amendment Rules, 2019.
“startup” means-
(a) an entity in India recognised as a startup by the competent authority under Startup India initiative; and
(b) in case of a foreign entity, an entity fulfilling the criteria for turnover and period of incorporation/
registration as per Startup India Initiative and submitting declaration to that effect.
Explanation: In calculating the turnover, reference rates of foreign currency of the Reserve Bank of India shall prevail.”
2. Startups, Small entities and natural persons will fall under single category and the schedule of fees listed in the existing Design Rules for natural person will be applicable.
3. No difference in scale of fees shall be payable if a Startup entity, having filed an application for a design, ceases to be a startup/small entity due to following reasons:
(a) lapse of the period during which it is recognised by the competent authority, or
(b) its turnover subsequently crosses the financial threshold limit as notified by the competent authority.
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