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Eligibility for the New Startup Scheme in India

November 23, 2017

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Eligibility for the New Startup Scheme in India

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 needs 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!