This article is about exploring whether your business would be eligible for the slew of benefits Modi government’s ‘Startup India, Standup India’ brings.
Given below is a flow chart depiction of the ‘Startup India, Startup India’ eligibility criteria. Startup India Eligibility To be recognized as an eligible startup and receive backing under Startup India Action Plan:
Business must be registered/incorporated as a:
Private Limited Company as per the Companies Act, 2013; or
Partnership firm as per the Indian Partnership Act, 1932; or
Limited Liability Partnership as per the Limited Liability Partnership Act, 2008.
Five years should not have lapsed after incorporation/ registration.
Turnover must not exceed Rs. 25 crore in any earlier financial year, as per Companies Act, 2013.
Innovation startups working to develop and deploy new products, processes or services powered by intellectual property or technology.
This means businesses must develop a unique product or service or process; or a meaningful upgrade of a current product or service or process which in turn adds value to customers and their workflow: or Commercialize unique products. Commercialize unique products
The Startup formed by reconstruction or splitting up of a pre-existing business isn’t eligible.
If the startup is certified by Inter-Ministerial Board, setup by Department of Industrial Policy & Promotion (DIPP) which authenticates innovativeness of the business.
Also applying startup should get recommendation about its innovativeness in the pre-specified DIPP format by a:
Incubator at a post-graduate college in India; or
Incubator recognized by Indian Government; or
By an incubator funded by Startup India Action’ project from; or
Backed by an Angel Fund/ Incubation Fund/Private Equity Fund/Accelerator/Angel Network registered with SEBI* which endorses its innovativeness; or
Be funded by Government of India’s scheme to promote innovation; or
If startup gets a patent in areas associated with the promoted business/enterprise. * Note (DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.)
