STARTUP
RECOGNITION PROCESS
Under
Startup India Action Plan
An Entity shall be considered as ‘Startup’
1.
Up
to five years from the date of its incorporation/registration
2.
If
its turnover for any of the financial years has not exceeded Rupees 25 crore, and
3.
It
is working towards innovation, development, deployment or commercialization of
new products, processes or services driven by technology or intellectual
property
Any such entity formed by splitting up or reconstruction of a
business already in existence shall not be considered a ‘startup’.
Meaning of Entity
1.
Private
limited company as defined in the Companies Act, 2013
2.
Registered
partnership firm registered under section 59 of the Partnership Act, 1932
3.
Limited
liability partnership under the Limited Liability Partnership Act, 2002
An entity is considered to be working towards innovation,
development, deployment or commercialization of new products, processes or
services driven by technology or intellectual property if it aims to develop
and commercialize:
1. A new product or service or process,
or
2. A significantly improved existing
product or service or process, that will create or add value for customers or
workflow
Provided that the mere act of developing the below would not
be covered under this definition:
1. Products or services or processes
which do not have potential for commercialization, or
2. Undifferentiated products or services
or processes, or c. products or
3. Products or services or processes
with no or limited incremental value for customers or workflow
Process of Recognition
Startups will be required to submit a simple application with
any of following documents:
1.
Recommendation (with regard to innovative nature of
business), in a format specified by Department of Industrial Policy and
Promotion, from any Incubator established in a postgraduate college in India;
or
2.
Letter of support by any incubator which is funded (in relation to the
project) from Government of India or any State Government as part of any
specified scheme to promote innovation; or
2.a recommendation (with regard to innovative nature of
business), in a format specified by Department of Industrial Policy and
Promotion, from any Incubator recognized by Government of India; or
3.
Letter of funding of not less than 20 per cent in
equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel
Network duly registered with Securities and Exchange Board of India that
endorses innovative nature of the business. Department of Industrial Policy and
Promotion may include any such fund in a negative list for such reasons as it
may deem fit; or
4.
Letter of funding by Government of India or any State Government as
part of any specified scheme to promote innovation; or
5.
Patent filed and published in the Journal by the Indian Patent
Office in areas affiliated with the nature of business being promoted.
Supporting Documents
1. Supporting document based on the
nature of recommendation selected above
2. Incorporation/ Registration
Certificate
3. Brief note on innovativeness of
products /services offered by the entity
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