It is essential for the entity to be a Pvt Ltd company, and must be acknowledged by DPIIT. For obtaining DPIIT registration, it is essential to go through startup India portal. When the turnover of the same, even for one financial year, is anywhere around 100 crores, then it is considered a startup. Collective sum of delivered shared capital amount and premium post stipulated issue should not cross 25 crores for the startup. To be exempted under Section 56(2)(viib), it is not essential for the start-ups to invest anything on static properties, gross payment to other companies or investments of more than 10 lakh INR on any vehicle for communication, having loans, and in some other properties other than regular cases. Such investments are possible with regular business cases.