Who is eligible for Startup India?
Who is Eligible for Startup India?
Startup India is a flagship initiative of the Government of India to promote innovation and entrepreneurship. It aims to provide a platform for budding entrepreneurs to realize their dreams and create jobs, foster innovation, drive economic growth, and access resources, guidance, and support from the government. The present article briefs Who is eligible for Startup India.
As mentioned above, Startup India is an initiative of the Government of India to promote and support the growth of startups in India. The Startup India vision is “To move India towards becoming one of the most vibrant startup ecosystems in the world.” It provides various benefits to startups, such as tax exemptions, financial support, and access to incubators. To avail of these benefits, startups must register with the Startup India program.
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Who is Eligible for Startup India?
An entity must fulfill specific criteria to be eligible for registration with Startup India. Here is a detailed breakdown of the eligibility criteria for the Startup-up India Scheme.
- Age of the Applicant: Any Indian citizen aged 18 or above can apply for the scheme.
- Age of the Firm – The Date of Incorporation of the company should not exceed ten years
- Type of Company – The Company should have been incorporated as a Partnership Firm, Private Limited Company, or a Limited Liability Partnership (LLP)
- Annual Turnover – The annual turnover of the company should not exceed Rs.100 crore in any of the financial years since incorporation
- Original Entity – The Company or Entity should have been formed initially by the promoters and not by splitting up or reconstructing an existing business.
- Innovative & Scalable – The startup should have a plan for developing or improving a product, process, or service and have a scalable business model with a high potential for creating wealth & employment.
- Companies working towards developing a new product or service can avail of benefits under the Startup-is India policy. The conditions that they must fulfill are:
- Concerned startups must work to develop, deploy, or commercialize any product or service that is driven by the latest technology or intellectual property.
- Startups must aim to improve an existing product or create a new one to enhance customer value or workflow.
- Startups must only involve developing and commercializing a unique product to enrich customer value or increase workflow.
- Registration and Approvals
- Startups are required to obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT)
- Recommendation of an incubator from any post-graduation college
- Recommendation from an incubator from any post-graduation college
- Recommendation from an incubator recognized by Central Government
- A patent filed and published in the Journals of the Indian Patent Office in the specific area of product service.
- Registration and SEBI for startup-ups providing funding and equity services
- Funding letter from the state government or central government of any scheme to promote innovation
- Partnership Share
- For partnership startups, 51% of the shares should be owned by a woman or individuals belonging to the Scheduled Case and Scheduled Tribe categories. They should not have defaulted on any credit payments.