Overview
The Indian Government launched the ‘Startup India’ Scheme in 2016 with an aim to promote business and employment opportunities in the country. A startup is a newly formed company designed to create a viable product, service or platform and is often funded by investors. Startups are focused on innovation and growth.
Startup means an entity, incorporated and registered in India
- As a Private Limited Company or Limited Liability Partnership or Registered as a Partnership Firm.
- With an annual turnover not exceeding Rs. 100 crores for any of the financial years since incorporation/registration.
- Working towards innovation, development or improvement or of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
- Shall not be more than 10 years old for Startup recognition OR not incorporated before April 2016 to claim Tax Exemption certificate.
An entity shall cease to be a Startup,
- On completion of 10 years from the date of incorporation/registration.
- If its turnover for any previous year exceeds Rs. 100 crores.