Startup India is a flagship initiative of the Government of India, intended to bring on startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. This initiative was launched on 16th January 2016 and has rolled out several programs with the objective of supporting entrepreneurship, building a vigorous startup ecosystem and transforming the Nation into a country of job creators not job seekers. The entities want to avail this scheme must be incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership and the existence of the company / firm should not be exceeding 10 years from the date of incorporation. The annual turnover not to exceed 100 crores for any of the financial years since its incorporation. Also the entity needs to work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment.
There is easier compliance, easier exit process for failed startups, exemptions on Income Tax & Capital Gains Tax. It supports creation of numerous incubators, and innovation labs, events, competitions and grant, fund of funds to infuse more capital into the startup ecosystem.
NOTE- An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Start Up”