What is start up?
Articles
Introduction
At its core, a startup is not merely a new business, it is a dynamic, often technology-driven entity designed to address a specific market gap with an innovative solution and a scalable business model. The objective is not just sustainability but accelerated growth and a transformative impact on industry.
Eligibility criteria as per Startup India
| Age of the Entity | Up to 10 years since incorporation |
| Turnover Limit | Should not exceed ₹100 crore turnover in any financial year |
| Business Nature | Must work towards innovation, improvement of products/processes/services, or possess a scalable model with high potential for job creation |
| Business Structure | Can be a Private Limited Company, Limited Liability Partnership (LLP), or a registered Partnership Firm |
| Formation | Should not be a reconstruction or division of an existing business |
Key benefits of DPIIT Recognition under Startup India
- Tax Exemptions: Eligible startups can avail income tax exemptions for three consecutive years within the first ten years, subject to certification.
- Enhanced Funding Access: Government initiatives improve visibility and networking opportunities, making it easier to connect with investors.
- Intellectual Property Protection: Startups benefit from fast-tracked patent and trademark applications and reduced filing fees.
- Government Tender Access: Startups receive preferential treatment when bidding for government contracts.
- Incubation & Mentorship: A network of accelerators, incubators, and expert mentors is available to support startup growth.
- Simplified Exit Process: Winding up an eligible startup is faster and requires fewer formalities.
Who should consider DPIIT Recognition?
Startups seeking government recognition and benefits should ideally meet the following profiles:
- Innovative Founders: Individuals developing new solutions with scalability.
- Technology-Focused Ventures: Businesses leveraging tech for market disruption.
- High-Growth Enterprises: Companies with structured expansion plans.
- Funding-Oriented Businesses: Ventures aiming to attract investors and financial backing.
- R&D-Driven Firms: Entities focusing on research & product development.
- Startups Seeking National Recognition: Businesses aiming to benefit from government credibility and support.