The Government Gives A Proper Definition To The Word ‘Start-up’

The Logical Indian

February 26th, 2016

Following the much welcomed “STARTUP INDIA” campaign, the government has come up with the definition of what a “Startup” is. Governments stressing on “innovation” is highly appreciated. According to the government notification, an entity will be identified as a startup.

  1. Till up to five years from the date of incorporation.
  2. If its turnover does not exceed 25 crores in the last five financial years.
  3. It is working towards innovation, development, deployment, and commercialization of new products, processes, or services driven by technology or intellectual property.

If you are planning to structure a part of your business into a separate entity, it won’t be called a startup as it already forms a part of a registered entity.

In order to obtain tax benefits, one has to obtain a certificate from the Inter-Ministerial Board of certification. The board consists of the following:

  1. Joint Secretary, Department of Industrial Policy and Promotion.
  2. Representative of Department of Science and Technology.
  3. Representative of Department of Biotechnology.

Defining startups is a very important step,  it segregates who can and cannot be considered as startups. The segregation ensures only deserving candidates gets the benefits of the same. Defining startups has always been a challenge,  there have been many definitions internationally and there is still consensus on  the same. Lack of definition could crowd the space with new entities created out of mergers and acquisitions among many other reasons.

For example
Stanford professor Steve Blank describes it as a “repeatable and scalable business model”

Jan Koum, the co-founder of WhatsApp says startup is a “feeling” while Adora Cheung says “It is a state of mind where people join your company and are still making the explicit decision to forgo stability in exchange for the promise of tremendous growth and excitement of making an immediate impact.”

The Logical Indian welcomes the step taken, however, given the ambiguity in the definitions of startup, we should be open to a further amendment to the definition of ‘startup’. We request the government to implement ‘Startup India’ in its true spirit and ensure the benefits reaches aspiring entrepreneurs. We wish the government good luck on the implementation of the scheme.

Read more at Yourstory.

Share your thoughts..

Related Stories

Cabinet Allocates Rs.1650 Crores For “Prime Minister’s Research Fellows” Scheme

manual scavenging

Kerala Startup Firm Develops Robot To Replace Manual Scavengers, Solution To End The Abominable Practice

An Unique Initiative: This Startup Trains Crows To Pick Up Cigarette Butts In Order To Fight Pollution

The Startup Boom Is Over: Startups Are Dying Around The World – Including India

NCORE

For The First Time, 100+ Renowned Leaders Are Coming Together To Mentor Non-Profit Startups

7.7 Crore Women Have Opened Bank Accounts In Last 1 Year, Thanks To PM Modi’s Initiative

Latest on The Logical Indian

News

Man Who Raped & Murdered 7-Yr-Old In Pak Given 4 Death Sentences, While BJP Protects Rapist In India

News

People Friendly Police In Kerala Turns Out Real Friends Of Public By Cleaning Playground

News

UP Govt Officials Allegedly Create A Fake List Of Farmers & Pocket Over Rs 2 Crore

My Story

My Story: “I Woke Up Next Day To Find Myself In The Morgue And Then I Walked Out To Tell People I Was Alive”

News

‘What I Did Was Right, No Regret,’ Shambu Lal Regar Says In Video Recorded From Jail, Abusing Muslims

News

PNB Scam: 24 Firms, 18 Businessmen, 7 BTech Grads Also Cheated By Mehul Choksi Of Gitanjali Gems