We have all come across the celebrated campaign of “Startup India” which was launched by the Prime Minister of India, Narendra Modi on January 16 2016. The campaign intends to support entrepreneurs who have the skills, but lack in financial resources. A separate fund of INR 10000 crore has been sanctioned for this campaign. However, if you wish to be a part of Startup India campaign, there are certain eligibility criteria which you must meet. An analysis of the same is given below:
Requirement A– The entity must be registered as a private company OR a partnership form OR A LLP (Limited Liability Partnership Firm), under their respective acts. This means that Startup India is not applicable for individuals or HUF.
Requirement B– The registration or incorporation of the entity should be not be older than 5 years. To put it in simple words, the registration of an entity should have taken place after 2012.
Requirement C- The annual turnover of the entity (as per the prevailing Companies Act 2013) should be less than 25 crore in any given financial year.
Requirement D– The startup should be in the realm of development and innovation. Any product or service which has been developed with a view to facilitate commercial use is considered ideal. The output should be technology driven or in respect of intellectual property.
Requirement E– The outcome of the startup should add value to commercialization. They should:
- a) Be a distinct product/service,
- b) Be a significantly updated version of a service/ product with added value.
Requirement F– The startup should have a certificate from one of the following entities setup by DIPP-
- a) Incubator funded by GOL
- b) Incubator established in a College (Post-Graduate level)
- c) Incubator fund registered with SEBI
- d) Incubator recognized by Gol
- e) Patent obtained from IPT (Indian Patent and Trademark) Office.
If all the requirements mentioned above are satisfied, an entity is considered as a startup under the Startup India campaign.
What is next?
A new app is available on all the major mobile platforms such as iOS, Windows, Android, etc. A user needs to download this app from the respective store and register his startup along with the required information. The department will scan the applications and revert through the same portal.
You can visit the official website for more information – https://www.startupindia.gov.in/
Startup India is a golden initiative which supports ‘Make in India’ campaign. The objective of this campaign is to ensure India attains self-sustenance and continues to contribute in the realm of technology, research and development. With a current fund of INR 2500 crores, this campaign looks forward to eliminate the financial challenges which young entrepreneurs face during the early stage. However, uniqueness and commercial value are the main goals behind the establishment of Startup India. This is why about 80% of the obligations have been withdrawn when it comes to getting patents registered. Nevertheless, quality assurance has no chance of compromise as the Government of India now needs quality over everything else.