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Which Type of Support Provides for a Startup Pvt. Ltd. Company?

As per the Definition of Start-up by Department of Industrial Policy & Promotion, Startup means an entity, incorporated or registered in India :

  • Not prior to seven years, however for Biotechnology Startups not prior to ten years,
  • With annual turnover not exceeding INR 25 crore in any preceding financial year, and
  • 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, such entity is not formed by splitting up or reconstruction of a business already in existence. Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 7 years and for biotechnology startups 10 years from the date of incorporation/ registration. Provided further that, a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose.

Thus the following criteria is to br matched for being eligible as a start-up:

  • Up to 7 years and for biotechnology startups up to 10 years from its date of incorporation / registration
  • Incorporated as either a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership
  • Turnover for any fiscal year has not exceeded INR 25 crore
  • Entity should not have been formed by splitting up or reconstruction a business already in existence

As far as support is concerned, the support with respect to working towards innovation, development or improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation shall form as a part of consideration with respect to a Private Limited looking forward to recognize itself as a start-up entity.

 

About EbizFiling.com :

 

EbizFiling.com is a motivated and progressive concept conceived by like-minded people, which helps small, medium and large businesses to fulfill all compliance requirements of Indian Laws.

 

Get in touch for a free consultation on info@ebizfiling.com or call 9643203209.

Ishita Ramani: Ishita Ramani is a young woman entrepreneur and currently the Operations Director at Ebizfiling India Private Limited. In her entire career so far, she has led a team of 50+ professionals like CA, CS, MBAs and retired bankers. Apart from her individual experience on almost every facet of Indian Statutory Compliances, she has been instrumental in setting up operations at Ebizfiling.com! Read about her journey at- https://www.greatcompanies.in/post/ishita-ramani-operation-director-at-ebizfiling-india-pvt-ltd
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