Qualifying as a Start Up
Anyone interested in taking benefits while starting a new venture must understand the following eligibility criteria for applying under the Startup:
1. It must be an entity registered/incorporated as a:
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.
2. Five years must not have elapsed from the date of incorporation/registration.
3. Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.
4. Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
5. The Startup must aim to develop and commercialize:
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.
6. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
7. 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.
Under the Scheme, Income Tax exemption is available for first three years. However, the startup will be eligible for tax benefits only after obtaining certificate from the Inter-Ministerial Board, setup for this purpose. more
1. It must be an entity registered/incorporated as a:
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.
2. Five years must not have elapsed from the date of incorporation/registration.
3. Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crore.
4. Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
5. The Startup must aim to develop and commercialize:
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.
6. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
7. 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.
Under the Scheme, Income Tax exemption is available for first three years. However, the startup will be eligible for tax benefits only after obtaining certificate from the Inter-Ministerial Board, setup for this purpose. more
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STARTUP CONCLAVE - STARTING OF A STARTUP ~ SOLVING THE MYSTERY Hi All, starting a startup business is definitely not an easy job ... it takes lot of stamina, patience and test of time. However, to provide an insight into it, what are the challenges and the mitigants thereof, we are having 1 session of Startup conclave - where the funding of startup is a possibility - but the main objective to understand the challenges of a startup and resolution towards them. The session is being organised on 17th July 2016 and is hosted by Marwari Yuva Manch, Stars. Looking at the bigger personalities who will chair the session, I cannot disclose the identity as of now. However, please drop a mail to us at treasurer@mymstars.com, if anybody is interested to attend this seminar. We would be keen to share the jist of the programme. Regards, Ajay Agarwal treasurer@mymstars.com more
Jun 05
It seems there is a lot of Government intervention & adjudication involved. Probably the "tech companies", (read on line trading companies, or simply put, agents) may benefit, not manufacturing companies. more
Jun 02
If innovation is the key to get the startup title, it may be very difficult for manufacturing and process industries. On the other hand, IT ventures can claim just an idea or a process as innovation and get away with it and may get certified too. more
Jun 01
Only innovative business ideas comes under Start up flagship or any new entity can be defined as startup if it qualify all the requisite criteria. Pls clarify. more
Jun 01
