start up india series - 1

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Introduction It was on the occasion of India’s 69th Independence Day that Prime Minister Narendra Modi announced the Start-up India initiative from the ramparts of India’s iconic Red Fort. Just five months later, on 16th January 2016, the PM unveiled the historic Start-up Action Plan.


http://yourstory.com/2015/08/start-up-india-stand-up-india-narendra-modi-independence-day/

http://yourstory.com/2015/08/start-up-india-stand-up-india-narendra-modi-independence-day/

Definition ‘Start-up’ is defined as an entity • Private Limited Company, • Registered partnership firm, • Limited Liability Partnership Incorporated / registered in India not prior to 5 years, with annual turnover not exceeding Rs. 25 crore in any preceding FY, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;


Eligibility - Snapshot


Private Ltd Co. / LLP / Partnership Firm [A] Yes

Age should be less than 5 years [B] Yes

Turnover of any year less than 25 Crores [C] Yes

Should develop an innovative product which should add value to the customers and should

be commercial nature [D]

Eligibility - Snapshot


Yes

Get an approval from DIPP that your company is Innovative [E]

Yes

Recommendation letter by

Incubator in Post Graduate Indian

college [F1]

Recommendation letter

by Incubator funded by GOI [F2]

Recommendation letter by

Incubator recognised by GOI

[F3]

Is funded by a Incubation fund /

Angel fund / Private equity fund /

Accelerator / Angel Network [F4]

Has Patent granted by Indian

Patent and Trademark office

related to business [F5]

If an entity meet the conditions [A], [B], [C], [D], [E] and anyone of F series, it is regarded as Start-up entity

Eligibility - Details For a ‘Start-up’ to be recognized as one, 1. It must be an entity registered / incorporated as a:

a. Private Limited Company under the Companies Act, 2013; or

b. Registered Partnership firm under the Indian Partnership Act, 1932; or

c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.

2. Five years must not have elapsed from the date of incorporation/registration.


Eligibility - Details 3. Annual turnover (as defined in the Companies Act, 2013) in

any preceding financial year must not exceed Rs. 25 crore 4. Start-up must be working towards innovation, development,

deployment or commercialisation of new products, processes or services driven by technology or intellectual property.

5. The Startup must aim to develop and commercialise: a. a new product or service or process; or b. a significantly improved existing product or service or

process that will create or add value for customers or workflow


Eligibility - Details 6. The Startup must not merely engaged in:

a. Developing products or services or processes which do not have potential for commercialisation; or

b. Undifferentiated products or services or processes; or c. Products or services or processes with no or limited

incremental value for customers or workflow 7. The Startup must not be formed by splitting up, or

reconstruction, of a business already in existence.


Eligibility - Details 8. The Startup has obtained certification from the Inter-

Ministerial Board, setup by DIPP to validate the innovative nature of the business, and: a. be supported by a recommendation (with regard to

innovative nature of business), in a format specified by DIPP, from an incubator established in a post-graduate college in India; or;

b. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or


Eligibility - Details c. be supported by a recommendation (with regard to

innovative nature of business), in a format specified by DIPP, from an incubator recognized by GoI; or

d. be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or

* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.


Eligibility - Details e. be funded by the Government of India as part of

any specified scheme to promote innovation; or f. have a patent granted by the Indian Patent and

Trademark Office in areas affiliated with the nature of business being promoted.


Eligibility – our beliefs One of the eligibility criteria states that “The product or service should be a new one or a significantly improved version of existing services or products.” Let’s take the example of start-up which is engaged in online hospitality services like OYO Rooms. So a new start-up engaged in the same field may not be eligible unless its offering is significantly improved than what existing players provide.


Eligibility – our beliefs Another eligibility criteria states that the start-up should get a recommendation letter from the recognized incubator cell or be recognized by the GoI or should be funded by recognized funds. Now this will be quite a task for start-ups and most of the start-ups may lack expertise, skills and bandwidth to qualify on this criteria


start up india series - 1

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