A startup is a newly established business, usually small, started by 1 or a group of individuals. What differentiates it from other new businesses is that a startup offers a new product or service that is not being given elsewhere in the same way. The keyword is innovation. The business either develops a new product/ service or redevelops a current product/service into something better.
Startups are becoming very popular in India. In order to develop Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted Startup India initiative to recognize and promote startups.
Eligibility Criteria for
Startup India Scheme
The start-up must be registered as a Private Company, LLP or Partnership Firm
The Startup must not be older than 5 years
The start-up must not be a product of restructuring
Annual turnover of the start-up must not be more Rs. 25 crores
The Business must be Involved in a New Product or Service
Only start-ups developing a new product or service or process are eligible under this scheme. This criterion has three conditions:
The Start-up must have Obtained Approval from DIPP that the Business is Innovative:
Every start-up has to obtain approval from the Inter-Ministerial Board set up by the Department of Industrial Policy and Promotion (DIPP)(2). To obtain approval from Inter-Ministerial Board of DIPP, a start-up should submit an application to validate the innovative nature of business along with supporting documents which are as follows: