IS YOUR COMPANY ELIGIBLE FOR THE NEWLY LAUNCHED

STARTUP SCHEME IN INDIA

By:- Eishani Behl

Prime Minister Mr. Narendra Modi on 16th Jan 2016, announced certain benefits and schemes
to promote start-ups in India. The event was Startup India, Stand up India. Startup India is a
flagship initiative of the Government of India mainly to promote and ensure proper nurturing of
start-ups in India. This will not only promote new start-ups but will also create new employment
opportunities. Various benefits can be availed because of this theme. . To meet the objectives of
this initiative, Government of India announced an action plan which is divided in 3 main areas
namely Simplification and Handholding, Funding Support and Incentives, Industry-Academia
Partnership and Incubation. However, to get those benefits the start-up needs to be eligible as per
the given criteria

The criteria for eligibility of any company to avail benefits under newly launched startup scheme
go as follows:-

Business entity must be Pvt.Ltd. Company / partnership firm/ LLP

It should not be older than 5 year

Turnover in preceding year should not exceed 25 Crore

It should not be formed by splitting off or reconstruction of existing business

Startup should work towards innovation, development, deployment or commercialization

of new / significantly improved product, process or service driven by technology or
intellectual property

Aim of startup is to develop a new product, Service or process from existing one.

Obtain certificate from Inter ministerial Board set up by DIPP to validate innovative idea
and which is supported by either of the following seven

Apart from the above stated points the following recommendations and requirements also
need to be fulfilled:

Recommendation (with regard to innovative nature of business), in a format specified by

DIPP, from an Incubator established in a post-graduate college in India

An incubator, which is funded (in relation to the project) from GoI as part of any
specified scheme to promote innovation
 Recommendation (with regard to innovative nature of business), in a format specified by
DIPP, from an Incubator recognized by GoI or

Should be funded by an Incubation Fund/ Angel Fund/ Private Equity Fund/

Accelerator/Angel Network duly registered with SEBI that endorses innovative nature of
the business or

Should be funded by GoI as part of any specified scheme to promote innovation or

Should have a patent granted by the Indian Patent and Trademark Office in areas
affiliated with the nature of business being promoted

An incubator, which is funded (in relation to the project) from GoI as part of any
specified scheme to promote innovation

Thus, if your start-up fulfills the given criteria you can easily avail the benefits of this
scheme.

Good luck with your start-up!