DEFINITION OF STARTUP (Only For the purpose of Government Scheme)

Startup Means an entity

  • Incorporated or registered in India
  • Not Older than 5 years
  • Annual Turnover less than 25 crores in any previous financial year

Startup Should be working towards innovation , development , deployment or commercialization of new product, process or service driven by technology or intellectual property .

Startup Entity Included only

  • Private Limited Company
  • oLimited Liability Partnership (LLP)
  • oRegistered Partnership Company


  • Fast tracking of startup Trademark, patent etc. Application, startups will get 80% Rebate in filling fees of patent, compared to other companies.
  • Relaxed norms of public procurement for startups, In order to promote startups, government has exempted startups (In manufacture sector) from the criteria of prior experience /turnover” without any relaxation in quality standard or technical parameter As per IBCBC.
  • Faster exit for startups, startups with simple debt structure may be wound up in a period of 90 days from the date of mailing an application of winding up on a fast track basis.
  • Financial Assistance Scheme For Startups:
    • (a)Government has setup fund of funds startups of RS. 10,000 Crore, Govt. will not directly invest in startup but with invest through SEBI Registration venture fund.
    • (b)(b)Government is providing credent guarantee, through national credit guarantee invest company (MCGTC)/ SIPBI , is being envisaged with a budgetary corpus of RS. 500 Crore per year.


  • Tax exemption on capital gain arising from sale of capital assets including shares.
  • Income tax exemption to startups for 3 years.
  • Tax exemption on investment in shares of startup company over and above fair market value.