About the Initiative
- The Startup India initiative of the Government of India envisages building a robust Start-up ecosystem in the country for nurturing innovation and providing opportunities to budding entrepreneurs.
- Since the launch of the initiative, Startup India has rolled out several programs with the objective of supporting entrepreneurs, and transforming India into a country of job creators instead of job seekers.
Why in News?
- Since the launch of the Startup India initiative in 2016, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, has recognised 98,119 entities as startups.
What is a DPIIT-recognized startup?
- An entity shall be considered a “Startup” –
- If it’s incorporated as either Private Limited Company or Registered Partnership Firm or Limited Liability Partnership. A sole proprietorship or a public limited company is not eligible as startup.
- If it is up to 10 years from the date of its incorporation/registration.
- If its turnover for any of the financial years has not exceeded INR 100 crore
- If it is 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.
- Should not have been formed by splitting up or reconstruction of a business already in existence.