Wednesday, May 6, 2020

Recognization of startup

Startup India is an initiative of the Government of India. The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi. The action plan of this initiative is focussing on three areas: Simplification and Handholding.


Startup Recognition:

Under the Startup India Action Plan, startups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program. The Startups have to provide support documents, at the time of application.

Eligibility Criteria for Startup Recognition:

  1. The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership

  2. Turnover should be less than INR 100 Crores in any of the previous financial years

  3. An entity shall be considered as a startup up to 10 years from the date of its incorporation

  4. The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconsutrctuon of an existing business shall not be considered a "Startup"

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