Recognition is what everyone seeks today. Be it your own identity or the identity of the organization which you represent. But the big question that arises is how far it is genuine. Same is the scene with the budding startup culture in India, which requires norms to channelize maximum output.
Government of India has taken an initiative and drafted an official definition for startups in India. This ingenuity is expected to bring uniformity in identified enterprises. The announcement of these uniform norms was made by The Department of Industrial Policy & Promotion (DIPP), New Delhi on February 17, 2016.
The Department of Industrial Policy & Promotion (DIPP)is a government body. It is responsible for formulation and implementation of industrial policy and strategies for industrial development. These policies and strategies are in conformity with the development needs and national objectives. DIPP monitors the industrial growth and production, in general, and selected industrial sectors.
So here are the norms notified by the Indian Government regarding startups:-
- Entity would be considered a startup for up to five years from the date of registration
- Entrepreneurs with a turn-over of less than 25 Cr can avail tax breaks for a period of five years
- Entities formed by splitting or reconstruction of existing business will not be considered for startups
Any startup monitoring these norms will have to acquire a certificate of an eligible business from inter-ministerial board of certification through mobile app/portal of DIPP. It will also have to submit a simple application with a specified set of documents as mentioned on the official site of DIPP.
These norms are in addition to the declaration made by Prime Minister Mr Narendra Modi on January 16, 2016, offering tax benefits to startups.
You can read here for more details :- Government Notification DIPP
All the Best!