Startup India Program

India saw a slew of changes in its corporate regime with the amendment in Companies Act. The introduction of the Startup India initiative by the Government of India is a major milestone. The benefits of startup India program are many and has been crucial in the growth of entrepreneurship culture in India.

It is an opportunity for the generation of employment, wealth and promotion of indigenous industries. As per a report by NASSCOM and Zinnov, India is the third-largest startup destination in the world. Startup India is an attempt to develop an ecosystem that promotes entrepreneurial spirit. There are several benefits of Startup India program.

The goals of Startup India is the development and innovation of products and services. It also seeks to increase the employment rate in India. Among other benefits of Startup India, it also seeks to provide:

a) Simplified work

b) Financial aid

c) Networking opportunities, and

d) Government tenders.

Launched on 16^th January 2016, Startup India has seen a boost of innovative ideas. It has also seen unprecedented growth in the entrepreneurial spirit in the youth of the country.

Most of the startups in India get registered under the following types of companies:

1. Partnership Firm
2. Limited Liability Partnership Firm (LLP)
3. Private Limited Company

Eligibility for Registration under Startup India

The above-mentioned company(s) are required to meet the following eligibility criteria, to be able to avail the benefits under the scheme:

• The company must be a private limited company or a limited liability partnership.
• The firm must have obtained approval from the Department of Industrial Policy and Promotion (DIPP).
• It must have a recommendation letter by an incubation.
• The firm must provide innovative schemes or products.
• It should be a new firm and not older than five years.
• The total turnover of the company should not exceed 25 crores.
• It should not be a result of any business already in existence, i.e., a company incorporated as a result of the scheme of re-arrangement.

On meeting the above eligibility criteria, a start-up can avail numerous benefits.