The announcements made by Prime Minister Narendra
Modi regarding Startup India Action Plan gave a lot of excitement and questions
to entrepreneurs and individuals in way to start their business.
All want to know the eligible startups in Startup
India action plan, so the first question occurs that what startup actually is??
here is the answer:-
Startups are usually small and initially financed
and operated by a handful of founders or one individual. These companies offer
a product or service that is not currently being offered elsewhere in the
market, or that the founders believe is being offered in an inferior manner or
there is a significant change in nature of a traditional service or product which
gives more comfort to users or customers.
+
Not more than 5 years elapsed
of the startup firm/company/LLP.
+
Turnover should not exceed 25
crores in any financial year.
+
Obtain a certificate of an eligible business from the
Inter-Ministerial Board of Certification consisting of:
a) Joint Secretary, Department of Industrial
Policy and Promotion,
b) Representative of Department of Science and
Technology, and
c) Representative of Department of Biotechnology.
It means
Innovation is the main element in startups.
Any such entity formed by
splitting up or reconstruction of a business already in existence shall not
be considered a ‘startup’.
Furthermore:
Any
Partnership Firm or Private Limited Company or Limited Liability Partnership CAN
BE a Startup.
Public
Limited Company or Proprietorship Firm CAN NOT BE a Startup.
