Last updated: December 30th, 2022 12:15 PM

Startup India Scheme

The Startup India Scheme is an initiative of the Government of India in 2016. The primary objective of Startup India is the promotion of startups, generation of employment, and wealth creation. The Startup India has initiated several programs for building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by the Department for Industrial Policy and Promotion (DPIIT).

Definition of "Startup"

Any company which fall into below list of category will be called as "Startup" and eligible to be recognised by the DPIIT to avail the benefits from the Government of India.

• Age of the Company - The Date of Incorporation should not exceed 10 years
• Type of Company - Should have been Incorporated as a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership
• Annual Turnover - Should not exceed Rs.100 crore for any of the financial years since its Incorporation
• Original Entity - The company or Entity should have been formed originally by the promoters and should not have been formed by splitting up or reconstructing an existing business
• Innovative & Scalable - Should have plan for development or improvement of a product, process or service and/or have a scalable business model with high potential for the creation of wealth & employment

Benefits from DPIIT

Under the Startup India Initiative, the companies which are registered under DPIIT are eligible to receive the following benefits: Simplification and Handholding - Easier compliance, easier exit process for failed startups, legal support, fast-tracking of patent applications and a website to reduce information asymmetry. Funding & Incentives - Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to infuse more capital into the startup ecosystem and a credit guarantee scheme. Incubation & Industry-Academia Partnerships - Creation of numerous incubators and innovation labs, events, competitions and grants.

Self Certification

The procedure to self-certification is to reduce the regulatory burden on Startups. Also, the Startups could focus on the core business. Benefits

• Startups are allowed to self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure. (Refer below for the details of laws)
• For labour laws, there will be any inspections for a period of 5 years. Startups will be inspected only on receipt of a credible and verifiable complaint of violation in the form of writing to the inspecting officer.
• For environment laws, startups which fall under the