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Definition of a startup under the Startup India scheme revised; benefits to be applicable up to 7 years

definition of a startup under the Startup India scheme
The move was done to "promote the start-up ecosystem and build a nation of job creators, instead of job seekers"

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Definition of a startup under the Startup India scheme revised; benefits to be applicable up to 7 years

In order to make it easier for ventures to avail of incentives and promote entrepreneurship, the government had, on Thursday, revised its definition of a startup under the Startup India scheme.


According to the Department of Industrial Policy and Promotion (DIPP), the revised terms now states that an entity will now be considered a startup up to 7 years, from the date of its incorporation/registration – extended from previously 5 years. This has been in done keeping in mind the gestation period involved in establishing a startup.

The scope of definition was also widened to include scalability of business model with potential of employment, with potential wealth creation and employment generation.




However, startups in the biotechnology sector get a period of up to 10 years from the date of incorporation/registration.


The DIPP further added that startups would not require a letter of recommendation from an incubator or industry association any more to avail of tax benefits or recognition under Startup India.


The statement goes on to explain that the DIPP has been in constant engagement with stakeholders to facilitate the start-up ecosystem and the revisions were done to ensure ease in starting a new business and “to promote the start-up ecosystem and build a nation of job creators, instead of job seekers.”


Prime Minister Narendra Modi had launched the the Startup India campaign in January 2016 with the an aim of nurturing innovation and to drive employment opportunities and economic growth.


2 Comments

2 Comments

  1. pradeep goyal

    Pradeep goyal

    May 27, 2017 at 10:58 pm

    You can quote latest DIPP Notification no 501E (available at start up India website) instead of referring twits of SUI . Notification have more clarity as it superpassed earlier notification. Income tax department have not come out with new notification to incorporate changes in this DIPP Notification. I wrote to them. All income tax notifications for start up exemptions give reference of old notification.

  2. Pingback: The Embassy of Israel and Startup India launch Start TLV Competition to encourage women-led tech startups

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