Eligibility for startups!!

Many entrepreneurs were excited by the announcements made by our Prime Minister Shri Narendra Modi as part of the Startup India Action Plan. There’s no doubt the measures were significant, but they do beg the question, are all the startups really eligible for the benefits that were announced?

Here’s a quick analysis of the eligibility criteria, for a startup to be recognized as one,

It must be an entity registered/incorporated as a:
Private Limited Company under the Companies Act, 2013; or
b. Registered Partnership firm under the Indian Partnership Act, 1932; or
c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
Five years must not have elapsed from the date of incorporation/registration.
Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.
Startup must be working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.
The Startup must aim to develop and commercialise:
a) a new product or service or process; or
b) a significantly improved existing product or service or process that will create or add value for customers or workflow.
The Startup must not merely be engaged in:
developing products or services or processes which do not have potential for commercialisation; or
b. undifferentiated products or services or processes; or
c. products or services or processes with no or limited incremental value for customers or workflow
The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business, and

a. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator established in a post-graduate college in India; or

b. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or

c. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an incubator recognized by GoI; or

d. be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or

e. be funded by the Government of India as part of any specified scheme to promote innovation; or

f. have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.
(Courtesy: Tamilseilvan V) more  

View all 32 comments Below 32 comments
Managing body of Fund of funds has been constituted through one or other kind of competetors only. No place for good administratives with development records, imartial economists or learned patriots. more  
Deadline & dates of new registration expected before & after, Stages & phase of innovation / R& D expected ti finance, Exact nature of Profile of entrepreneur expexted, Manner of allocation of Fynd od funds aming numver of staerup & per startup minimum & maximum, Lications & industry allocation of Innovation Clustures ? ? ? ? ? ? ? more  
Hatts off to Mr. Amit marwah. At Least one usefull post on this platform. Dear friends, this is another "JUMLA" aired by PM. It has no clarity , no well-design processes, only preparation for "Start-up TAX" more  
This program is a 100% total damp squib. There is nothing new for a real start-up. Any real start-up has to still go through all the previous rigmarole. TOTALLY DISAPPOINTED AND DISENCHANTED. more  
Hi amit I m creating 1 app so registeringfor 1 service based co. With single owner with small scale. So looking for small financial loan from gov't. 1. So can I be eligible with these conditions ? But 1 of CA suggested me to go for Proprietorship co. N can hire any no. Of employees. No need to register. Is it correct option ? more  
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