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Business News/ Companies / Start-ups/  Modi govt tweaks definition of start-ups, benefits to apply for up to 7 years
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Modi govt tweaks definition of start-ups, benefits to apply for up to 7 years

The amended start-up definition makes it easier for firms to avail of incentives and promote entrepreneurship under the Startup India scheme

Startup India was launched by the Narendra Modi government on 16 January 2016 to nurture innovation and drive economic growth and employment opportunities. Photo: PTIPremium
Startup India was launched by the Narendra Modi government on 16 January 2016 to nurture innovation and drive economic growth and employment opportunities. Photo: PTI

New Delhi: The government on Thursday amended the definition of a start-up, making it easier for the business ventures to avail of incentives and promote entrepreneurship under the Start-up India scheme.

The department of industrial policy and promotion (DIPP), the nodal body for Start-up India, said in a statement that an entity shall now be considered a start-up up to seven years from the date of its incorporation/registration, taking into account the long gestation period in establishing start-ups. Currently, the period of consideration is five years.

However, in the case of start-ups in the biotechnology sector, the period will be up to 10 years from the date of incorporation/registration.

The DIPP statement said start-ups would no longer require a letter of recommendation from an incubator or an industry association for either recognition or tax benefits under Start-up India.

The scope of the definition of a start-up was also broadened to include scalability of business model with potential of employment generation or wealth creation.

“As a constant endeavour to facilitate the start-up ecosystem, the DIPP has been holding extensive consultations with stakeholders. The above changes are an effort to ensure ease of starting new businesses to promote the start-up ecosystem and build a nation of job creators, instead of job seekers," the statement said.

Start-up India was launched by Prime Minister Narendra Modi on 16 January 2016 to nurture innovation and drive economic growth and employment opportunities.

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Published: 25 May 2017, 09:41 PM IST
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