The government policies for the start-up and entrepreneurship sector has become friendlier over last year and now with Prime Minister Narendra Modi set to announce Start Up India, Stand Up India on January 16, the government has now come up with a new and more precise definition for start-ups.
This move comes with an aim to bring about more innovation, so that the benefits of government policies towards start-ups go to innovation. The likely new definition of a start-up does not include those businesses which were formed by splitting or restructuring businesses or those that have been in existence for five years and exceed Rs 25 crore in sales.
The start-ups which will fit the new definition will get many advantages such as tax incentives, simplified compliance rules and much more. The start-ups however, not only have to be innovative but they also have to engaged in the development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property, a government official told The Economic Times.
Masayoshi Son, SoftBank Chief Executive Officer and Uber founder Travis Kalanick among 40 top CEOs and founders of start-ups, venture capitalists and angel investors from Silicon Valley will be a part of the programme to launch Start Up India, Stand Up India.
It is the Department of Industrial Policy & Promotion (DIPP), which is piloting the Start Up India, Stand Up India initiative. The department has also planned the initiative in such a way that there will be many checks and balances that will determine the nature of innovation it’s looking for.
