Capital Investment Subsidy Scheme

Capital Investment Subsidy Scheme supports IT businesses in Goa by providing money help for infrastructure growth. Under the Goa IT Policy, it offers up to 25% subsidy on capital investments to new and existing IT units, encouraging entrepreneurs to expand their operations and create local employment opportunities across the state.

Capital Investment Subsidy Scheme - Introduction

Capital Investment Subsidy Scheme, launched in 2018 under the IT Policy of the Government of Goa, encourages growth in the local technology sector. It gives financial support to eligible IT units to build a strong business ecosystem in Goa. The scheme helps new and existing units grow through infrastructure subsidies and makes the state a preferred destination for technology investment.

This scheme works as a support program made for Goa's technology sector. By cutting down the capital expenditure burden, it helps businesses grow well within the state. The Department of Information Technology, Electronics and Communication runs the scheme, and applications are accepted online through the Goa Online portal.

Key Information

Benefits

This scheme provides big financial relief for infrastructure investments. Note that land and building costs are excluded from these calculations. The subsidy is now up to 25% of the eligible investment in plant, machinery, and IT equipment, with different maximum limits for different unit sizes.

An additional 10% subsidy is available if the unit falls under the government identified key focus areas. The subsidy is released in three instalments after the unit begins operations and after verification by the competent authority. The exact amount also depends on the share of Goan origin employees or graduates:

• Up to 30% local staff: 50% of eligible incentive
• 30% to 60% local staff: 75% of eligible incentive
• More than 60% local staff: 100% of eligible incentive

For example, if an IT unit employs 70% Goan staff, it qualifies for the full 100% of its eligible subsidy bracket, provided the employees have been on the payroll for at least one year.

Eligibility

To qualify for this scheme, a business must operate within Goa and belong to one of the following legal categories:

• Proprietorship firms
• Private or Public Limited companies registered under the Companies Act, 2013
• Registered Partnership firms under the Partnership Act, 1932
• Limited Liability Partnerships under the LLP Act, 2008

In addition, the company bank accounts and the accounts of the directors or partners must be linked to their Aadhaar numbers. The unit must also have operated from its current office space for more than two years to be eligible for the subsidy. Udyog Aadhaar registration is required to claim the benefit.

Exclusions

Benefits cannot be claimed under this scheme if the unit is already availing similar financial incentives through another policy offered by the Government of Goa. The scheme provisions are not binding assurances from the government, and the doctrine of promissory estoppel will not apply against the government.

Application Process

Applications are accepted online. Follow these steps to apply for the subsidy:

STEP 1 - Register on the Goa Online portal and log in to your account.

STEP 2 - Fill in the application form for Capital Investment Subsidy Scheme under the IT services category.

STEP 3 - Upload all the required documents along with the application.

STEP 4 - Pay the applicable convenience fees. The payment receipt can be downloaded from your inbox.

STEP 5 - Note the acknowledgement number for tracking your application status.

STEP 6 - The department checks the application and may ask for document compliance if needed. Track the status by going to Menu, then Tracking, then Track Status, and entering the acknowledgement number.

Applications can be submitted on a quarterly, bi-annual, or annual basis once the relevant capital expenditure has been incurred.

Documents

Keep these documents ready for the application:

• Incorporation and unit registration certificates
• PAN, Aadhaar, and GST identification numbers
• Memorandum and Articles of Association
• First bill or document showing commencement of operations
• Office occupancy certificate issued by local authorities
• Detailed 3-year project report and business plan
• Employee details including the percentage of Goan origin staff
• Proof of employment for the last 12 months, such as salary slips or PF records
• Contractor agreements, purchase orders, and payment receipts for capital investment
• Auditor or Chartered Accountant certificate confirming the investments
• Udyog Aadhaar registration

References

Official Scheme Page | Official Guidelines | Apply Online

FAQ's

What is the objective of the Capital Investment Subsidy Scheme?

The scheme aims to boost the IT sector in Goa by providing subsidies on capital investments to help units expand their operations.

Are LLPs eligible for this scheme?

Yes, provided the bank accounts of the partners or the entity are linked to Aadhaar.

How long must my office be operational to apply?

The unit must have operated from the specific office premises for more than two years to qualify.

Can I apply if I receive other government incentives?

No, this subsidy cannot be combined with other similar financial incentives provided by the Government of Goa.

How is the subsidy amount decided?

The subsidy is up to 25% of the capital investment, excluding land and building costs, and is further adjusted based on the percentage of Goan employees.

How is the subsidy paid?

The subsidy is released in three instalments after the unit begins operations and after verification by the competent authority.