The document defines what constitutes a startup according to the Startup India Standup India (SISI) scheme. A startup must be an incorporated or registered entity in India less than 5 years old with an annual turnover not exceeding 25 crore. It must be working on innovation, development, deployment or commercialization of new products, processes or services using technology or intellectual property. The entity can take the form of a private limited company, limited liability partnership or registered partnership firm. To be eligible, the startup must develop highly innovative products/services and receive certification and funding recommendation from approved incubators or investors. Benefits for eligible startups include seed funding, income tax exemptions, patent fee refunds, and exemptions from certain

1. Startup India Standup India
Analysis by
Accurate Solutions Consulting Services
www.ascs.info
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2. What is startup as per SISI ?
Under Startup India Scheme Startup means an entity,
incorporated or registered in India not prior to five years,
with annual turnover not exceeding INR 25 crore in any
preceding financial year, working towards innovation,
development, deployment or commercialization of new
products, processes or services driven by technology or
intellectual property.
Provided also that an entity shall cease to be a Startup if
its turnover for the previous financial years has exceeded
INR 25 crore or it has completed 5 years from the date
of incorporation/ registration.
Provided that such entity is not formed by splitting up, or
reconstruction, of a business already in existence.
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3. Startup Entity/Business
Must be Registered as :
• Private Limited Company (under The
Companies Act, 2013) or
• Limited Liability Partnership (under The LLP
Act, 2008) or
• Registered Partnership Firm (under The Indian
Partnership Act, 1932)
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4. Age of the Company
• Company must not be older than 5 years
• It means on the date of application for
Startup India scheme, the startup must be
registered for less than 5 years.
• Any company registered before the date of
announcement of the scheme is also eligible
for the Scheme
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5. Annual Turnover
Not more than Rs. 25
crore in any preceding
financial year
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6. Highly Innovative Product or Service
Startup must be working
towards innovation,
development of new products,
processes or services driven by
technology or intellectual
property
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7. No splitting of existing Company allowed
It means dividing an existing
company and floating a new
company to get benefit under
Plan is not allowed
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8. ELIGIBILITY TO TAKE BENEFITS UNDER START UP INDIA INITIATIVE?
 Criteria – 1
Business must be Private Limited Company, One Person Company (OPC), LLP or registered Partnership Firm
 Criteria – 2
Turnover of Company to be less than Rs. 25 crore in last financial year
 Criteria – 3
Entity Eligibility Date Important Point
Pvt. Ltd. Company Company incorporated after 1st
April 2014
On the date of application under
Scheme, the entity must not be
registered for more than 5 yearsOne Person Company
(OPC)
OPC incorporated after 1st April
2014
LLP LLP incorporated after 1st January
2012(tentative period)
Partnership Firm Firm registered after 1st January
2012 (tentative period)
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9. ELIGIBILITY TO TAKE BENEFITS UNDER START UP INDIA INITIATIVE?
 Criteria – 4 Only Startups involved in developing and commercializing
• New product or service or process
• Significantly improve the existing product or service or process to create or add value for customers or workflow
 Criteria – 5
Certification from the Inter-Ministerial Board is a must for getting 3 years tax exemptions.
 Criteria – 6 Recommendation or Funding requirement
The startup application for the scheme must be supported by a recommendation certificate for innovative nature of business from any
one of the following establishment:
• Incubator established in a post-graduate college in India like IIT, IIM etc. OR
• Incubator funded from Government of India (in relation to the project) OR
• Incubator recognized by Government of India OR
• Funding by an Incubation Fund or Angel Fund or Private Equity Fund or Business Accelerator or Angel Network duly registered with SEBI
that endorses innovative nature of the business;
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10. BENEFITS & EXEMPTIONS UNDER SISI
• Easy availability of Seed Funding
• Income Tax Exemptions for 3 years
• 80% Patent fee will be refunded
• Labour & Environment laws exemptions. No
Inspection from PF, ESIC & Environment
departments for 3 years.
• Capital Gain Tax exemption for investment in
eligible Startup
• Exposure to best startup mentorship
• Easy Exit from the Startup within 90 days
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