Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. Launched on 16th January, 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers.
Meaning of the Start-up & Entities eligible:
- Entity must be incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership.
- The existence of the company/firm should not be exceeding 10 years from the date of incorporation.
- Annual turnover not exceeding Rs.100 crore for any of the financial years since its incorporation.
- Entity should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment.
Note: An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Start-Up”
Support and Incentives for Start-ups:
- Easier compliance, easier exit process for failed startups;
- Exemptions on Income Tax and Capital Gains Tax;
- Fund of funds to infuse more capital into the startup ecosystem;
- Creation of numerous incubators and innovation labs, events, competitions and grant.