Qualifications for being a Start-up in India?
As per the DIPP (Department of Industrial Policy & Promotion) under the Ministry of Commerce & Industry,
Start up is an entity (could be pvt. ltd., LLP, registered partnership firm, etc.) & qualifies the below three conditions:
(i) upto 5 years from the date of incorporation
(ii) in any financial year turnover of the company is not greater than 25
(iii) is working towards innovation, commercialisation of new products, intellectual property, patents, etc.
If a company satisfies the above conditions then it is regarded as start-up & can avail various concessions & IT benefits by GoI by applying for Start Up India.
Upon careful analysis, it is easily clear that the condition (iii) is hard to satisfy. For it one needs at least one of the below:
recommendation letter (wrt innovation) from Incubators, Patent certificate or letter of funding from VCs, Incubators, Angel Fund, etc. The incubator could be of a post-graduate college, GoI funded or State funded.
Once one applies for Start-up India registration via Start Up India portal the application is reviewed by the Inter-Ministerial Board which consists of:
a ) JS, DIPP
b) Representative of DST
c) Representative of DBT
What doesn’t qualifies as Start-up?
~ an entity which is in existence for more than 5 years or has crossed the turnover of 25Cr in any financial year
~ is not innovative
》One Person Company (OPC) are eligible for start-up.
With Great Love,
Er. Amit Yadav