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Definition of Startup in India

Puja Sharma
June 9th, 2020 · 1 min read

As per Indian Government, an entity shall be considered as a Startup

  1. Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
  2. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
  3. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.

Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.

Department of Industrial Policy and Promotion (DIPP), under the Union Ministry for Commerce and Industry, released following notification on definition of start-ups on April 11, 2018.

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