ARE YOU A STARTUP?
ARE YOU ELIGIBLE FOR THE BENEFITS OFFERED?
LET’S HAVE A LOOK…
The Indian Government has declared ‘Startup India’ initiative for creating a great platform for startups in India. The various Ministries of the Government of India have initiated a number of activities for the purpose.
To bring uniformity in the identified enterprises, the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India has come out with a definition for an entity to be considered as a Startup.
(Definition is limited only for the purpose of Government schemes)
The Ministry of Commerce and Industry released a notification on April 1, 2015, to define a startup. According to this notification – an entity will be identified as a startup.
- Till up to 5 years from the incorporation date
- If its turnover does not exceed 25 crores in the last five financial years
- Its working is driven by technology or intellectual property towards innovation, deployment, and commercialization of new products, processes or services
- Provided that such entity is not formed by splitting up or reconstruction of a business already in existence.
- Moreover, a startup needs to obtain certification from Inter-Ministerial Board for getting tax benefits.
To have more clarification for the definition of startup, you can visit http://startupindia.gov.in/
The companies or entrepreneurial ventures that are in their initial phase of development are termed as Start-up companies. They are most commonly associated with high-tech projects, development, and production, distribution of new products, processes or services.
Measures taken by the Startup India Action Plan are benefited only to those who are eligible. Let’s have a look at whether you are eligible for the benefits that were announced as a part of Startup India Action Plan.
(**specifically applicable for startups seeking tax exemptions**)
Hope you are clear about the eligibility for fitting in the definition for STARTUP. If you are a one, let’s have a look at fund related doubts for startup entrepreneurs. Click Here (redirected to Fundraising for Startups Article)
Department of Industrial Policy & Promotion (DIPP) is responsible for formulation and implementation of promotional and developmental measures for growth of Industrial sector, keeping in view the national priorities and socio-economic objectives.
While individual Administrative Ministries look after the production, distribution, development and planning aspects of their specific industries, (DIPP) Department of Industrial Policy & Promotion will have sole responsibility of overall industrial policy.
Incubators are companies that provide services to new and startup companies such as management training or office spaces and help them to develop. These programmes are sponsored by private companies, municipal entities or public institutions such as colleges and universities.
Incubators benefit to startups in many ways – Office buildings and manufacturing space offered at discounted market rates, staff supplies advice and much-needed expertise in developing business to a higher level and marketing plans as well as helping to fund fledgling businesses
So if you have a specialized idea for your business and want to find an incubator in your state, visit National Business Incubation Association
It is Network of Angel investors (affluent individuals – former entrepreneurs or professionals) that provide funding at initial stages of business. Provide the smaller amount of funding.