India is an emerging market for start-ups and entrepreneurs as can be witnessed in its growth over the last eight years. From a mere 471 Start-ups in 2016 to now nearly 1,12,718 start-ups as of Oct 2023.
The Indian start up ecosystem has been central to the country’s growth story in the last few years and especially in the re-emergence of the economy post -pandemic. With Indian unicorns crossing a century in May 2022 and more than 1,12,718 start-ups as of Oct 2023start-ups being recognized by DPIIT (Department of Promotion of Industry and Internal Trade), the Indian start up ecosystem has come of age and is now considered the third largest in the world.
Before deep diving into various nuances lets first understand
What we mean by Start-up?
- Every new business is not a start-up.
- Department for Promotion of Industry and Internal Trade (DPIIT) has defined the criteria for “
start up entity
“. - Eligibility criteria includes turnover, business objectives, time period since incorporation/set-up, etc.
- Start-up status needs to be applied for and it is not automatically available to an eligible entity.
- Only after recognition from DPIIT, an entity can be said to be a Start-up for availing benefits available to Start-ups.
Start-up means an entity, incorporated or registered in India:
- Period
Up to a period of ten years from the date of incorporation/ registration.
- Entity Form
Private Limited or Partnership or LLP.
- Turnover
Annual turnover not exceeding Rs. 100 Crore for any of the financial years since incorporation/registration.
- Activites Criteria
Working towards – innovation, development or improvement of services/products/ processes or it is a scalable business model with a high potential of employment generation or wealth creation.
- Splitting Up
Should not be an entity formed by splitting up or reconstruction of an existing business.
Leave a Reply