Definition of Startup in India
- As per the Startup India Action plan, the followings conditions must be fulfilled in order to be eligible as Startup :
- Has not yet completed a period of ten years from the date of incorporation/registration.
- Is a private limited company or registered as a partnership firm or a limited liability partnership.
- Has an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.
- 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.
- It is not formed by splitting up or reconstructing a business already in existence.
Why in News?
- Union Minister for Information & Broadcasting and Youth Affairs & Sports, Anurag Singh Thakur said that India is now the hub of ‘Start-up’ ecosystem in the world, ranking third with 90,000 ‘Start-Ups’.