Government enlarges startup definition, Statups to benefit for 7 years

The department of industrial policy and promotion (DIPP), the nodal body for Start-up India, said in a statement that an entity shall now be considered a start-up up to seven years from the date of its incorporation/registration, taking into account the long gestation period in establishing start-ups. Currently, the period of consideration is five years.

However, in the case of start-ups in the biotechnology sector, the period will be up to 10 years from the date of incorporation/registration.

The DIPP statement said start-ups would no longer require a letter of recommendation from an incubator or an industry association for either recognition or tax benefits under Start-up India.

The scope of the definition of a start-up was also broadened to include scalability of business model with potential of employment generation or wealth creation.

“As a constant endeavour to facilitate the start-up ecosystem, the DIPP has been holding extensive consultations with stakeholders. The above changes are an effort to ensure ease of starting new businesses to promote the start-up ecosystem and build a nation of job creators, instead of job seekers,” the statement said.

Start-up India was launched by Prime Minister Narendra Modi on 16 January 2016 to nurture innovation and drive economic growth and employment opportunities.

Advertisements