What is Start-Up India?

In today’s fast moving world with rapid growing economy of India, The word “ StartUp” has become so popular & trending in the business vocabulary . Every Second person who wants to start his own business calls him as a Entrepreneur and his business as a Start-Up. Agreed ?

But how far it is correct in technical sense or how can I exactly know what actually Start-Up is & how it works?

So here in this article, I have covered majorly all sort of basic fundamentals and usual questions answers for my readers.

lets’ get started first with the meaning of Start-up ?

Technically, the start-up means a Company incorporated under Companies Act & recognized as a Start-Up with department of promotion of Industry and Internal Trade (DPIIT).

Who can be a Start-Up or Whether I can be a start-up ?

Since, every new business run by the new entrepreneurs and every new one wants
to register his/her business as a Start-Up . But there are certain conditions &
eligibility criteria which you have to fulfill only then you can be a registered startup in India & can avail the benefits & privileges.

Eligibility Criteria of Start-Up

• Should be incorporated as a
  Private Limited Company ; or
  Registered as a partnership firm; or
  Limited Liability Partnership
• Turnover not exceeding Rs 100 Crores for any of the financial years since its incorporation.
• An entity shall be considered as a startup up to 10 years from the date of its incorporation.
• 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 reconstruction of an existing business shall not be considered a “Startup“ i.e. Entity should be Original.

Benefits of Start-up India Registration

• Self Certification: Compliance for 6 Labour laws & 3 Environmental laws through a simple online procedure
• Startup Patent Application & IPR Application: Fast tracking of Startup Patent applications, panel of facilitators to assist in filing of IP applications, govt to bear facilitation costs.
• Tax Exemption under 80IAC: Exemption from paying Income tax for 3 consecutive financial years out of their first Ten years since incorporation.
• Section 56 Exemption: Investments into eligible startups by listed companies with a net worth of more than INR 100 Crore or turnover more than INR 250 Crore shall be exempt under Section 56 (2) VIIB of Income Tax Act.
• Easy Winding up of the Company: As per IBC 2016, Eligible startups can be wound up within 90 days of filing the application for insolvency.
• Easier Public Procurement Norms: Opportunity to list your products on GeM portals, No Earnest Money Deposits (EMD) required to file govt tenders, exemption from prior experience or Turnover for manufacturing facilities in India.