There is a prescribed criteria for the entity to get register itself under the startup scheme. Before proceeding for the DPIIT registration we need to first understand what a startup is? A start up is a small business started with the objective to solve a problem. These are the small business entities like (companies, LLP, firms etc.) which are generally functioned by the promoters or an individual. Startups provide jobs opportunities to the people which help in the economic development of the society. Startup India defines those business that has been newly formed or has been in existence of 10 years or lesser. This has been specified for biotechnology firms that the limit is 10 years of operation from the date of registration in India and for the other industries the limit is 7 years to get recognised under startup.
This initiative of identifying and encouraging the startups are taken by our government of India. This has been done in consonance with the Make in India Campaign. By getting registration under DPIIT, the startup will get benefit of self-certification and compliance under 9 environmental & labour laws. If the entity wishes to wind up the company they can do so under 90 days under Insolvency & Bankruptcy Code 2016. Further there are multiple exemptions and/or rebates available such as:
Tax exemption on capital gains & on investments above fair market value.>
Exemption from requirement of earnest money deposit in government tenders.
Income tax exemption for a period of 3 consecutive years
In case of patent and trademark filing there is rebate of fee upto predefined limit..