– a private limited company (registered under the Companies Act, 2013), or<\/p>\n
– a limited liability partnership (under the Limited Liability Partnership Act, 2008), or<\/p>\n
– a partnership firm (registered under Section 59 of the Partnership Act, 1932)<\/p>\n
Type of Business<\/strong><\/p>\n – Should work towards innovation, development or improvement of products or processes or services, or<\/p>\n – Scalable business model with a high potential of employment generation or wealth creation<\/p>\n Period for which it will enjoy the status of a startup<\/strong><\/p>\n – Biotechnology sector \u2013 10 years<\/p>\n – Others- 7 years<\/p>\n Other Conditions<\/strong><\/p>\n 1. Turnover : Turnover for any of the financial year should not exceed Rs 25 cr.<\/p>\n 2. Entity formed by splitting up or reconstruction of a business already in existence shall not be considered a \u2018Startup\u2019.<\/p>\n NOTE- a business already in existence fulfilling all the above criteria will also be considered as a startup.<\/p>\n WHY YOU SHOULD REGISTER YOUR STARTUP?<\/strong><\/p>\n The Department of Industrial Policy and Promotion has laid down many advantages in its startup action plan for registered startups.<\/p>\n – Self-Certification of compliance under 9 environmental & labour law<\/p>\n – Income tax exemptions for three years<\/p>\n – Tax exemptions on Capital gains and investments above fare market value.<\/p>\n – Fast track process of patent registration and 80% rebate on filing patents<\/p>\n – Rs. 10,000 crore fund to support start-ups through alternate startup funds.<\/p>\n – Guarantee fund for startups through National Credit Guarantee Trust Company \/ SIDBI over 4 years<\/p>\n – Startups in the manufacturing sector are exempted from the criteria of prior \u2018experience\/ turnover\u2019 without any relaxation in quality standards or technical parameters in public procurement (by government).<\/p>\n – 90 day window to wind up\/ close business under insolvency & Bankruptcy code 2016<\/p>\n![\"Private](\"https:\/\/ventureasy.com\/blog\/wp-content\/uploads\/2017\/12\/Multiethnic-People-with-Startup-300x203.jpg\")