An entity shall be considered as a Startup:
• If it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India
• Up to ten years from the date of its incorporation/registration
• If its turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crore.
• If it is 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.
Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
The Government through this initiative aims to empower Startups to grow through innovation and design. In order to meet the objectives of the initiative, Government of India is announced the Action plan that addresses all aspects of the Startup ecosystem.
With this Action Plan the Government hopes to accelerate spreading of the Startup movement: • From digital/ technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc.; and • From existing tier 1 cities to tier 2 and tier 3 citites including semi-urban and rural areas. The Action Plan is divided across the following areas: • Simplification and Handholding • Funding Support and Incentives • Industry-Academia Partnership and Incubation.