The Government of India introduced the Startup India scheme with a primary objective of fostering the growth of startups in the country. This initiative aims to create a robust startup ecosystem, transforming India into a nation of job creators rather than job seekers. The Department for Industrial Policy and Promotion (DPIIT) oversees the various programs under the Startup India Scheme, which have significantly expanded the scope of development, generating job opportunities in the Indian economy.
A startup is a recently established business, typically small, initiated by an individual or a group of people. What sets it apart from other new organizations is its focus on offering a novel product or service that is not readily available elsewhere. The main driver behind startups is innovation and the pursuit of progressive development.
A startup refers to a recently established business, typically small in size, initiated by an individual or a group of people. What sets it apart from other new organizations is its focus on offering a novel product or service that is not currently available elsewhere. The primary drive behind startups is innovation and development.
To be categorized as a startup and be eligible for the benefits offered by DPIIT (Department for Promotion of Industry and Internal Trade), a company must possess the following features:
Age of the Company: The company’s date of incorporation should not exceed 10 years.
Type of Company: The company can either be a Private Limited Company under the Companies Act, 2013, or a registered Partnership Firm under the Indian Partnership Act, 1932, or a Limited Liability Partnership Firm under the Limited Liability Partnership Act, 2008.
Turnover Limit: The annual turnover of the company should not exceed Rs. 100 crore since its incorporation for any of the financial years.
A New Business Entity: The startup must be a new business venture and should not be the result of splitting or restructuring an existing business.
Innovation Friendly: The startup should be actively engaged in innovation, developing new products or services, or enhancing existing ones. Its business model should demonstrate significant potential for wealth creation and employment generation.
DIPP Certificate: Obtaining a certificate from the Inter-Ministerial Board is a crucial requirement. This board is established by the Department of Industrial Policy and Promotion (DIPP).
By meeting these criteria, a startup gains recognition as an innovation-driven enterprise and becomes eligible to avail the benefits and support provided by the government to foster entrepreneurial growth and development.
