Under the Startup India Scheme, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. Most of the startup companies are focused on increased revenues and maximized profits by various methods. However, the initial stage involves bootstrapping their organizations out of their hard-earned money. One of the ways to grow earnings is to reduce the cost. Government retains 30% of our income in form of tax which leads to higher cost. A startup is any small business commenced with the objective to solve a problem operated by the founder or a single person.
Eligibility criteria for Startup recognition
- An entity shall be considered as a Startup up to a period of ten years from the date of incorporation or registration, if it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India.
- Turnover should not exceed INR 100 crore in any of the financial years since incorporation / registration.
- Entity should be working towards innovation, development or improvement of products or processes or services, or it should be a scalable business model with a high potential of employment generation or wealth creation.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a Startup.