Startup India is a flagship initiative of the Government of India, envisioned to build a strong ecosystem for nurturing innovation and Startups in the Country.
1. STARTUP INDIA
A NEW WAVE TO BUISNESS:
Startup India is a flagship initiative of the Government
of India, envisioned to build a strong ecosystem for
nurturing innovation and Startups in the Country.
Ministry of Commerce & Industry (Department of
Industry Policy and Promotion) vide Notification no.
G.S.R. 180(E) dated 17th February, 2016 have issued
detailed outline forStartup India initiative.
ELIGIBILITY
An entity (Company/Partnership firm/LLP) shall be considered as ‘Startup’
i) Upto 5 years fromthe date of its incorporation/registration,
ii) If its Turnover for any of the Financial years has not exceeded INR 25 crore, &
iii) Working towards innovation, development, deployment or commercialisation of new
products, processes orservices driven by technology orintellectual property;
Exclusion from eligibility: Entity formed by splitting up or reconstruction of a business already in
existence shall not be considered as a startup.
PROCEDURE FOR INTER-MINISTERIAL BOARD APPROVAL, FOR TAX EXEMPTIONS AND
RECOGNITION AS ‘STARTUP’-
For obtaining tax benefits & to apply for the recognition, entities fulfilling the eligibility criteria, shall
be required to obtain a certificate of an eligible business from the Inter-Ministerial Board of
Certification consisting of:
a) Joint Secretary, Department of Industrial Policy and Promotion,
b) Representative of Department of Science and Technology, and
c) Representative of Department of Biotechnology
STARTUP RECOGNITION: PROCESS FLOW
Recognition process shall be through mobile/app portal of the DIPP- www.startupindia.gov.in
i) Submit online application with any of the following documents:
ii) Recommendation (with regard to innovative nature of business), in a format specified by
DIPP, from any Incubator established in a post-graduate college in India; or
2. iii) Letter of support by any incubator which is funded (in relation to the project) from
Government of India or any State Government as part of any specified scheme to promote
innovation; or
iv) Recommendation (with regard to innovative nature of business), in a format specified by
DIPP, from any Incubator recognised by Government of India; or
v) Funding letter of not less than 20% in equity by any incubation fund/angel fund/Private
equity fund/Accelerator/Angel Network duly registered with SEBI that endorses innovative
nature of the Business. DIPP may include any such fund in negative list for such reasons as it
may deem fit; or
vi) Funding letter by GOI or any State Government as part of any specified scheme to promote
innovation; or
vii) Patent filed & published in the Journal by the Indian Patent office in areas affiliated with
nature of business being promoted.
2. On submission of this application, a real time recognition number would be issued to the
Startup for availing benefits (other than tax and IPR).
INNOVATION OF ENTITY: AIMS TO DEVELOP AND COMMERCIALIZE
Entity is considered to be working towards innovation, development, deployment or
commercialization of new products, processes or services driven by technology or intellectual
property if it aims to develop and commercialize:
i) A new product orservice orprocess, or
ii) A significantly improved existing product or service or process that will create or add
value for customers or workflow.
However, the mere act of developing:
a. products orservices or processes which do not have potential forcommercialization, or
b. undifferentiated products or services orprocesses,or
c. products or services or processes with no or limited inc remental value for customers or
workflow
Would not be covered under this definition.
BENEFITS OF RECOGNITION AS START-UP:
1. Ease in registration/recognition.
2. Self-certification of compliances with Labour and Environment Laws
3. No inspection forduring first 3 years in case of labourlaws
4. Special facilities forFemale participants
5. 80% Rebate in filing fee of Startup patents
6. Funding support from GOI through Venture Capital Funds registered with SEBI
3. 7. Credit to innovators through Credit Guarantee Fund
8. Income Tax exemption for3 years. Also tax Exemption on capital gains/ investments above
FMV