Is your startup eligible for #startupindia plan? Find out here

#startupindia: Eligibility

After the energetic launch of Action plan by the Indian Government which intends to build a strong eco-system for nurturing innovation and Startups in the country, now it’s the time to know about the eligibility. In order to meet the objectives of the initiative, Government of India has announced some eligibility parameters for this Action Plan that addresses all aspects of the Startup ecosystem Lets see if your startup is eligible for #startupindia plan. Below are some of the eligibility marks from the Action Plan:

#Definition Explains Eligibility

This action plans gives all new startup definition. According to new criteria,

“Startup means an entity, incorporated or registered in India not prior to five years, with annual turnover not exceeding INR 25 crores in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.”

With this government stands clear on the points mentioned in the action plan that only applies to the startups under 5 years from their date of incorporation; with all new innovative idea and turnover not exceeding 25 crores.

#Business Identification

A business is covered under the definition if it aims to develop and commercialize

• A new product or service or process;
• Or a significantly improved existing product or service or process, that will create or add value for customers or workflow. The mere act of developing
• Products or services or processes which do not have potential for commercialization;
• Or undifferentiated products or services or processes;
• Or products or services or processes with no or limited incremental value for customers or workflow would not be covered under this definition.

With this eligibility criteria government ensures that the benefit is available at root level and provides targets to more important and fruitful ideas.

#Clearing Out Miscellaneous Titbits

In order for a “Startup” to be considered eligible, the Startup should fulfil atleast one of these also

• 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
• 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
• 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 Entity Identification of businesses covered under the definition in Part A above Department of Industrial Policy and Promotion
• 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
• be funded by GoI as part of any specified scheme to promote innovation; or
• have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative   In this eligibility mark the startup should get a recommendation letter from the recognized incubator cell or should be recognized by the GoI or should be funded by recognized funds.  These above given markers are the main eligibility points that secures government’s flagship initiative and with no doubt optimistically reaches out to the person with the need.

#startupindia #standupindia

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