he Government will carry out a review of this notification on or before 31.03.2021.
Eligibility Criteria for Start-up Recognition:
1. The Start-up should be incorporated as:
- a Private Limited Company (as defined in clause (68) Section 2 the Companies Act, 2013); or
- registered as a Partnership Firm (a firm registered under section 59 of the Partnership Act, 1932); or
- a Limited Liability Partnership (as defined in clause (n) of subsection (1) of Section 2 of the Limited Liability Partnership Act, 2008).
1. [i]Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
2. An entity shall be considered as a start-up up to 10 years from the date of its incorporation/registration.
3. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. However, an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Start-up’.
The process of recognition of an eligible entity as start-up shall be as under:
1. A Start-up shall make an online application over the mobile app or portal set up by the Department for Promotion of Industry and Internal Trade (DPIIT).
2. The application shall be accompanied by:
- A copy of Certificate of Incorporation or Registration; and
- A write-up about the nature of business highlighting how it is working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation.
1. The DPIIT may, after calling for such documents or information and making such enquires, as it may deem fit: recognise the eligible entity as Start-up; or (b) reject the application by providing reasons.
Some of the Frequently Asked Questions:
Q.1 Would a One Person Company (OPC) be eligible to avail benefits under the Start-up India initiative?
Ans. Yes. One Person Companies are eligible to avail benefits under the Start-up India initiative.
Q.2 Can a foreigner enter into partnership under the LLP Act and get that LLP registered with Start-up India?
Ans. Yes, a foreign national can enter into partnership under the LLP Act and get that LLP registered. It can even get recognised by the DIPP.
Q.3 What is the time-frame for obtaining certificate of recognition as a ‘Start-up’ in case an entity already exists?
Ans.The certificate of recognition is issued typically within 2 working days upon successful submission of the application.
Q.4 If my start up gets recognised, would I obtain a certificate for it? If yes, would I be able to download the certificate?
Ans.Yes, if your start-up gets recognised, you would be able to download a system generated verifiable certificate of recognition.
Q.5 If a start-up has applied for DPIIT-recognition and the application gets rejected or marked incomplete due to missing documents or insufficient information, should the start-up edit the existing application or submit a new one?
Ans. If the application for recognition has been marked incomplete, the start-up needs to follow the given steps:
1. Log in with their start-up credentials on www.startupindia.gov.in
2. Select ‘Recognition and Tax Exemption’ button on the right panel
3. Select the ‘Edit Application’ button and proceed with completing your application
If the application has been marked ‘Incomplete’ thrice, the application is rejected.
Rejected applications cannot be edited, and a new application can be submitted after three months from the date of communication of the rejection email.
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