Which Type of Support Provides for a Startup Pvt. Ltd. Company?
-
November 2, 2018
As per the Definition of Start-up by Department of Industrial Policy & Promotion, Startup means an entity, incorporated or registered in India :
- Not prior to seven years, however for Biotechnology Startups not prior to ten years,
- With annual turnover not exceeding INR 25 crore in any preceding financial year, and
- Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that, such entity is not formed by splitting up or reconstruction of a business already in existence. Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 7 years and for biotechnology startups 10 years from the date of incorporation/ registration. Provided further that, a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose.
Thus the following criteria is to br matched for being eligible as a start-up:
- Up to 7 years and for biotechnology startups up to 10 years from its date of incorporation / registration
- Incorporated as either a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership
- Turnover for any fiscal year has not exceeded INR 25 crore
- Entity should not have been formed by splitting up or reconstruction a business already in existence
As far as support is concerned, the support with respect to working towards innovation, development or improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation shall form as a part of consideration with respect to a Private Limited looking forward to recognize itself as a start-up entity.
About EbizFiling.com :
EbizFiling.com is a motivated and progressive concept conceived by like-minded people, which helps small, medium and large businesses to fulfill all compliance requirements of Indian Laws.
Get in touch for a free consultation on info@ebizfiling.com or call 9643203209.
About Ebizfiling -
October 20, 2022 By Zarana Mehta
Company Registration in the USA: 5 Advantages of company registration in the US for foreign non-resident Introduction Do you wish to create your business in the USA but you are Non-resident US citizen? And or want to set up a business […]
October 19, 2022 By Zarana Mehta
7 Tax Advantages of C Corporation in the USA Introduction Entrepreneurs may choose a C corporation for a number of advantages. This corporate structure can really assist business owners in reducing their overall tax burden, even though there is a […]
October 17, 2022 By Zarana Mehta
5 Key differences between S and C Corporation Introduction A C Corporation is the default designation given to a newly formed company. On the other hand, a C corporation may choose to convert into a S Corporation at anytime if […]