The Government of India has launched a Startup India Initiative as its flagship scheme to promote innovative ideas and incentivize entrepreneurs for setting up their ventures. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT).

The concept of Start-up has emerged to encourage entrepreneurship and innovation. An idea that is a result of out-of-the-box thinking, backed by a successful development and execution plan is provided support both by financial assistance and handholding till the idea is transformed into a tangible output in a timely manner. Special emphasise is given to start-up projects which has significant impact and implication to the business and society.

The Government in its efforts to develop an effective Start-up ecosystem, has launched a Startup India Initiative as their flagship scheme to promote innovative ideas and incentivize entrepreneurs for setting up their ventures. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT)

Certain criteria need to be fulfilled for being considered eligible for DPIIT Startup recognition to avail of the benefits declared by the Central/ State government(s). The criteria presently applicable are:-

1. Less than 10 years of existence from the Date of Incorporation/Registration.
2. Nature of entity – Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership
3. annual turnover not to exceed Rs. 100 crores for any of the financial years since its Incorporation
4. Entities resulting from splitting up or reconstructing of an already existing business not eligible.
5. Innovative & Scalable underlying business

Major benefits under the Startup India Initiative

1. Benefit of self-certification of compliance for major Labour Laws and Environmental Laws through a simple online procedure
2. No inspections under labour laws for a period of 5 years unless there is a specific compliant on violation.
3. Startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB) would be able to self-certify compliance
4. subsidised framework to apply for Patents, Trademarks, Designs – an 80% rebate in filing patents vis-a-vis other companies
5. Exemption from Income Tax – subject to fulfilment of specified conditions registered Startups are eligible for certain exemptions/relaxations under the Income Tax Act which includes exemption from paying Income tax, Capital Gains Tax on Share Premium (Angel Tax) etc.,