A start-up is defined as an entrepreneurial venture that is typically a newly emerged business aiming to meet a marketplace need through developing a viable business model. Key characteristics of a start-up include being no more than 7 years old (10 years for biotech start-ups), having an annual turnover not exceeding Rs. 25 crore, and working towards innovation or improvement of products, processes or services. A start-up ceases to qualify as such after 7 years or if its annual turnover exceeds Rs. 25 crore. Business is defined as the organized effort of individuals to produce and sell goods and services for a profit through a common organization, ranging from small street vendors to large corporations like General Motors.

1. What is Start-up ?
an entrepreneurial venture which is
typically a newly emerged business that
aims to meet a marketplace need by
developing a viable business model
around a product, service, process or a
platform
Start-up - An Overview
Defined by DIPP :
Age : Up to a period of
7 years from the date
of incorporation/
registration (up to 10
years in case of
Startups in
Biotechnology sector)
Business Form :
As a private limited
company /
partnership firm /
limited liability
partnership
Annual turnover
not exceeding Rs.
25 crore for any of
the financial years
since incorporation
Working towards
innovation,
development or
improvement of
products or processes
or services.
entity formed by splitting up or reconstruction
of an existing business shall not be considered
a ‘Startup’
An entity shall cease to be a Startup:
On completion of 7
years from the
date of its
incorporation / 10
years in case of
Biotechnology sector.
turnover for any
previous year
exceeds Rs. 25
crore
What is business :
According to well-known professors
William Pride, Robert Hughes, and Jack
Kapoor, business is 'the organized
effort of individuals to produce and
sell, for a profit, the goods and services
that satisfy society's needs.' A business,
then, is an organization which seeks to
make a profit through individuals
working toward common goals. It can
range from a street peddler to General
Motors.
Money
(Capital &
Profit)
Organization
Products
(Goods
& Services)
MarketPeople
Communications
Countries
& Culture
Business
Conferences,
Negotiations *
Trips
Types of
Entities
Sole
Proprietorship
Partnership
Limited
Liability
Partnership
One
Person
Company
Private
Limited
Company
Companies
Act, 2013
Income Tax
Act, 1961
LLP Act 2008
Other Specific
Laws related
To industry
The Partnership
Act, 1932
ESIC / EPF
Law required
to be complied
Regards
CS Lalit Rajput, +91 8802581290
lalitrajput537@gmail.com