A startup is a firm operated by a small group of individuals that addresses a crisis. A startup can also be formed when the director(s) come up with a potentially brilliant concept. The most major benefit of a startup is that it boosts employment in the country as more and more enterprises pop up. With the potential of greater job opportunities, the Indian government has endeavoured to aid start-up businesses in developing and succeeding in the Indian market. The Startup India Program can help you innovate and improve your economic sustainability.
Now that you have a better understanding of what a startup is and what Startup India Program is all about, let us look at which firms in India qualify as startups.
The startup India Program eligibility criteria
What qualifies you as a Startup India Program participant?
- The corporation must be either a private limited company or a limited liability partnership.
- For the first 10 years after registration, the firm remains a startup. The Indian government has increased the period from 7 to 10 years in order to provide enterprises with more chances and tax breaks in the long run.
- If the company's annual revenue does not exceed Rs 100 crore in any of the next ten years, it will be considered a startup. Once the threshold is reached, the firm is no longer considered a startup. The Indian government has just raised the Rs 100 crore threshold from Rs 25 crore.
- An Incubation Fund, an Angel Fund, or a Private Equity Fund should provide funding for the company.
- It is important to obtain a patron guarantee from the Indian Patent and Trademark Office.
- You should have a letter of recommendation from an incubation programme.
- The company must come up with novel concepts and plans.
All financing information must be filed with SEBI (Securities and Exchange Board of India)
