Rolling out your very own startup? Find out if it is eligible
While they seem to be everywhere nowadays, to be eligible to qualify as startups, they have to fulfill several criterion under the Startup India scheme.
Startups have made it quite possible for individuals to put forward their unique ideas out in the world and prosper. They bring new and innovative ideas and if the same are acceptable to the public, the founders succeed. Additionally, Startup India initiative by the government in 2016 accelerated the emergence of startups along with generation of employment, and wealth creation. However, startups cannot be started out of the blue. To withstand the competition that rival firms pose, startups need to be agile while implementing their ideas. While they seem to be everywhere nowadays, to be eligible to qualify as startups, they have to fulfill several criterion under the Startup India scheme. Any startup needs to fulfill the below mentioned conditions,
1. The startup company formed should be a private limited company or a limited liability partnership.
2. The startup company should not be older than 5 years from initiation date. In case of Biotechnology startup, the firm should not be more than 10 years old.
3. The total turnover of the startup should not exceed Rs 25 crores
4. The startup should be approved by the Department of Industrial Policy and Promotion (DIPP).
5. The startup should be funded by either an Incubation fund, Angel Fund or Private Equity Fund.
6. A patron guarantee should be obtained from the Indian patent and Trademark Office.
7. The startup should have a recommendation letter by an incubation.
8. The startup should not be formed by splitting up or reconstruction of a company already in existence.
9. The startup should aim to work towards innovation, development, deployment or commercialization of either products, services or processes. This can be driven by technology or intellectual property.
10. The startup should be certified by the Inter-Ministerial Board.
11. In case of startups, capital gain is exempted from income tax
12. The Incubation fund, Accelerators, Angel Fund or Private Equity Fund, funding the startup must be registered with SEBI.