There is a given norm for the entity to get registered within the startup scheme. Before moving to DPIIT registration, it is important first to get the concept of a startup. A startup primarily is a small business established to address issues. These are the small business bodies like LLPs, organizations, etc., that are normally operated by the promoters or any individual owner. Startups offer job scopes that help in enriching economy of the nation. Startup India enriches those ventures being recently established or has been there for past 10 years or less than that. It has been mentioned for the biotech companies specifically that the limit is 10 years functionality from the registration day in India. In case of other industries, the limit is 7 years to get acknowledged as a startup.
This step of selecting and inspiring the start-ups is taken by the Government of India. It is done with thorough coordination of Make in India Campaign. Upon registering under DPIIT, the start-ups can enjoy self-certification and acquiescence as per 9 environmental and labor regulations. When the entity goes for closing the company, the same can be done within 90 days as per Insolvency & Bankruptcy Code 2016. Also, there are several relaxations provided as well like-
- 1. Relaxation with taxation on capital, as well as on investments beyond decent market worth.
- 2. Relaxation from need for compulsory deposit of money for governmental tenders.
- 3. Exemptions of income tax for 3 continuous years.
- 4. When it comes to filling up patent and trademark, there is relaxation with charges to a certain limit.
Additionally, it is essential to fulfilling the minimum capital, turnover, experience criterion by the entity as mentioned, while applying for government tenders. Once the concerned organization is acknowledged as a start-up by DPIIT, these entities can fill tender applications as mentioned, despite not meeting such norms of nominal capital, turnover amount, etc.