A recently incorporated business can register itself under Government of India’s (GoI) ‘Startup India’ initiative and receive recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

The eligibility criteria for ‘Startup India’ recognition are listed below:

• The startup must be a Private Limited company, LLP, or partnership incorporated within the last 10 years.
• The annual turnover should not exceed INR 100 crore in any financial year.
• The startup must be working on an innovative product, service, or business model with high scalability potential for creating wealth and employment.
• The startup should not be formed by splitting or reconstituting an existing business.

The recognition makes a startup eligible for various benefits listed below:

• Self-certification under 6 labour and 3 environmental laws for 5 years.
• Fast-tracking of patent applications.
• Exemption from paying income tax for 3 consecutive years if found eligible.
• Exemption from paying income tax on consideration received due to the issuance of shares having a value greater than fair market value.
• Startups can be wound up within 90 days of making an insolvency application.
• Listing on the Government e-marketplace and selling directly to the government.