Startup India Program Recognizes 114,900 Entities, Nurtures Innovation
By siliconindia | Friday, 08 December 2023, 11:56 IST
India's startup ecosystem has experienced significant expansion, with approximately 1.16 government-recognized startups emerging as part of the Centre's initiative to promote innovation and entrepreneurship. As per Commerce and Industry Minister Som Parkash's statement in the Lok Sabha, the Startup India program, initiated in January 2016, has officially recognized 114,902 entities as startups by October 31, 2023. However, data from the Startup India government portal suggests that nearly 115,967 startups were registered over a span of nearly eight years.
The registration criteria include specific parameters such as a company's operational duration not exceeding 10 years from its incorporation. Eligible entities must be registered as private limited companies, partnership firms, or limited liability partnerships, maintaining an annual turnover below Rs 100 crore for any financial year since their inception. Startups seeking registration should not originate from the division or restructuring of existing businesses. They must contribute to the development or enhancement of products, processes, or services and possess a scalable business model with the potential for wealth creation and employment generation.
Recognized startups receive various government benefits, including self-certification compliance with labor and environmental laws, assistance in patent applications, and tax exemptions under section 80IAC of the Income-tax Act. The SIDBI Fund of Funds scheme, launched in 2016 with a Rs 10,000 crore corpus, has granted 2,977 income tax exemptions and provided funding to 3,654 startups. This scheme channels capital to SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in startups through equity instruments. Moreover, the Startup India program incorporates a Seed Fund scheme that offers financial aid for proof of concept, prototype development, and market entry. Additionally, there's a Credit Guarantee Scheme providing credit guarantees to DPIIT-recognized startups by banks, NBFCs, and venture debt funds operating under SEBI-registered AIFs.
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