In 2015, the Government of India, under the administration of the Ministry of Commerce and Industry, began the Startup India Initiative. This was done with the aim of boosting the Indian economy, encouraging Indian entrepreneurs, and giving a boost to Indian startups.
Under this initiative, eligible companies can get recognized as Startups by the Department for Promotion of Industry and Internal Trade (DPIIT). With this recognition, they can access a host of tax benefits, easier compliance, IPR fast-tracking and more. You can learn more about eligibility and benefits below.
Eligibility Criteria for Startup India Certificate
To be eligible for Startup India Certificate, the Startup should be a:
- Private limited company, or
- Registered Partnership firm, or
- Limited liability partnership.
The business should be newly incorporated. It should not have been formed by splitting up or reconstructing an existing business.
The turnover of the startup should be less than INR 100 Crores in any of the previous financial years.
A business entity shall be considered as a startup for up to 10 years from the date of its incorporation
The business concept and idea of the startup should be unique. It must be driving innovation or bringing significant improvement in existing products, services, or processes.
Moreover, such a startup should have the potential to generate employment and create wealth.
Who is not eligible for Startup India Certificate?
The following are disqualified from getting Startup India recognition:
- Sole Proprietorship
- Firm constitute by the notary partnership deed
- Once annual turnover exceeds INR 100 crores
- A Company that is older than 10 years.
What’s the validity of the Startup India Certificate?
An entity shall cease to be a Startup either on completion of 10 years from the date of its incorporation/registration or if its turnover for any previous year exceeds INR 100 crore, whichever occurs earlier.