Start Up India is an Initiative started by The Hon’ble Prime Minister of India Shri Narendra Modi Ji to help the entrepreneurs and young individual having an extraordinary idea of business. The main goal of this camping is to encourage the manufacturing and service sector participants to produce more and contribute to the GDP of the country. Along with Make In India campaign of the Shri Narendra Modi Ji this The Government of India aims to boost the production of all the sectors and aims to generate huge employment through startups. The best part of these campaigns is that for the first time in the history of India, Indian Government has recognised the potential and necessary facilities required to give to the startups on such a broader level.
An entity shall be considered as a ‘startup’
a) Up to five years from the date of its incorporation/registratio
b) If its turnover for any of the financial years has not exceeded Rupees 25 crore,
c) If it is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;
Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘startup’.
Entity means a private limited company (as defined in the Companies Act, 2013), or a registered partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2002).
To prove the innovative nature of business one of the following documents has to be produced:-
1) a recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator established in a postgraduate college in India; or recognized by Government of India; or funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation;
2) a letter of funding of not less than 20 per cent in equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or
3) a letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or
4) a patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.
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