Lease Rental Subsidy Scheme

Lease Rental Subsidy Scheme is a government scheme that supports eligible Information Technology units in Goa by reimbursing part of their office space lease rentals. It is one of the Information Technology Policy Schemes formed under the Goa Information Technology Policy 2018 and is run by the Department of Information Technology, Electronics and Communication (DITE&C), Government of Goa. The scheme is open for new and existing IT and ITES units that operate from leased premises in the state.

Since many companies prefer leased offices over owned buildings, this scheme lowers the cost of setting up and growing a business in Goa. It gives a subsidy of up to 50% of the actual lease rental paid by the unit, and the support is available for a maximum of two years from the date commercial operations begin. The exact amount depends on the size of the unit, and the scheme rewards units that create local employment, especially for Goan professionals and women employees.

Lease Rental Subsidy Scheme - Key Details

Lease Rental Subsidy Scheme is a state-level scheme for business entities in Goa. It is part of the Information Technology Policy introduced by the Department of Information Technology, Electronics and Communication. The scheme helps IT units manage their regular operational costs during the early years of setup and expansion, making Goa a preferred destination for technology businesses.

Applications are submitted online. A unit first registers on the startup.goa.gov.in portal and then completes the application through the Goa Online portal. The scheme is not a DBT scheme, and the benefit is given in the form of a reimbursement on lease rentals paid by the unit.

Benefits

The main benefit is a reimbursement of up to 50% of the actual lease rental paid by the unit. This subsidy is available for a maximum of two years from the date commercial operations begin, and it is released in three instalments after verification of the documents.

The maximum amount a unit can claim depends on its size. Smaller units can get up to ₹10 lakh, other units up to ₹50 lakh, and mega units up to ₹1 crore. This structure encourages both small businesses and large IT companies to set up operations in Goa.

• Subsidy amount: Up to 50% of the actual lease rental paid by the unit for its office space.
• Duration: The subsidy is available for a maximum of two years from the date commercial operations begin.
• Maximum limit: Up to ₹10 lakh for smaller units, ₹50 lakh for other units, and ₹1 crore for mega units.

All benefits depend on the available budgetary allocations. The unit must remain operational in Goa and employ personnel at the leased premises to stay eligible. A performance evaluation is carried out at the end of each fiscal year to confirm continued eligibility.

Eligibility

To qualify for this subsidy, a unit should meet the following conditions:

1. The unit should be an IT or ITES unit, either new or an existing unit undertaking expansion in Goa.

2. The unit must be registered under the Goa IT Policy 2018 and recognised by the Department of IT, Government of Goa.

3. The unit must establish operations in Goa and begin commercial operations, with a valid lease agreement in the name of the applicant unit.

4. The unit should employ personnel working at the Goa-based leased premises. The business must be a legally registered entity, such as a proprietorship firm, private or public limited company, partnership firm, or a limited liability partnership.

For example, if Rajesh runs a registered IT consultancy in Panaji, he can apply for this scheme provided his business is recognised under the relevant company acts and operates within the state. A unit cannot claim both the Lease Rental Subsidy and the Built-up Area Purchase Rebate for the same premises at the same time. Also, only expenses incurred after the policy notification count toward the rebate.

Application Process

Applications are submitted online. A unit should follow these steps to apply:

STEP 1 - Register on the official startup.goa.gov.in portal and log in with the created credentials.

STEP 2 - Fill in the application form for the Lease Rental Subsidy Scheme with the correct business and lease details.

STEP 3 - Upload all the required documents as asked in the application form.

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

STEP 5 - Note the acknowledgement number after payment for tracking the status of the application.

STEP 6 - The department scrutinises the application and may mark it back for document compliance if required, or process it further. The status can be tracked by going to Menu, then Tracking, then Track Status, and entering the acknowledgement number.

Once submitted, the authorities process the request. Scrutiny usually takes around 30 days, approval by the committee takes about 60 days, and final payment is made within 90 days of receiving the application.

Documents

A unit should keep the following documents ready for the application:

• Business proof: Incorporation certificate, unit registration certificate, PAN, Aadhaar, GST documents, and Memorandum and Articles of Association (MOA & AOA).
• Operations proof: First bill or document showing commencement of operations, and an occupancy certificate for the office space.
• Lease proof: Lease deed or lease rental agreement for the office space, proof of rent payment for the period for which the subsidy is claimed, and proof of upfront lease premium payment in case of a land lease.
• Employment proof: Employee details including the percentage of Goan origin, and employment proof such as PF or salary slips.

A 3-year business plan or detailed project report (DPR) with projected investment and employment figures is also required. All these documents help the department verify the eligibility and the actual lease expenses of the unit.

References

Official scheme details | Guidelines | Registration portal | Contact details | User Manual

FAQ's

What is the primary objective of this scheme?

This scheme provides lease rental subsidies to eligible IT units based in Goa to make the state a preferred investment destination for technology businesses.

Is there a maximum limit for the benefits?

Yes. Smaller units can receive up to ₹10 lakh, other units up to ₹50 lakh, and mega units up to ₹1 crore.

How is the subsidy amount calculated?

The subsidy is up to 50% of the actual lease rental paid by the unit, available for a maximum of two years from the start of commercial operations.

Can I apply if I am already getting another incentive?

No. A unit cannot claim both the Lease Rental Subsidy and the Built-up Area Purchase Rebate for the same premises at the same time.

What is the minimum operational requirement?

The unit must be registered under the Goa IT Policy 2018, commence commercial operations in Goa, and employ personnel at the leased premises before applying.

How is the subsidy paid?

The subsidy is released in three instalments after verification of the documents and commencement of commercial operations.