Meaning of startup for startup India

For start up India programme only qualified startups will be eligible. Eligibility criteria for start up India programme is following:

Startup means an entity, incorporated or registered in India not prior to five years, with annual turnover not exceeding INR 25 crore in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence. Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/ registration. Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose.

Related Topic:
Salient features of Start up India programme

Part B: Definition of terms

1. Entity:Private Limited Company (under The Companies Act, 2013) or a Registered Partnership Firm (under The Indian Partnership Act, 1932) or Limited Liability Partnership (under The Limited Liability Partnership Act, 2008)
2. Identification of businesses covered under the definition in Part A above: A business is covered under the definition if it aims to develop and commercialize
   • a new product or service or process; or
   • a significantly improved existing product or service or process, that will create or add value for customers or workflow. The mere act of developing
   •  products or services or processes which do not have potential for commercialization; or
   • undifferentiated products or services or processes; or
   •  products or services or processes with no or limited incremental value for customers or workflow would not be covered under this definition.In order for a “Startup” to be considered eligible, the Startup should be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
   •  be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified sc1453084832StartupIndia_ActionPlan_16January2016heme to promote innovation; or
   •  be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or