MANU/INDP/0010/2017

Ministry : Ministry of Commerce and Industry

Department/Board : Industrial Policy and Promotion

Notification No. : GSR501(E)

Date of Notification : 23.05.2017

Date of Publication : 23.05.2017

Supersession of notification no G.S.R. 180 (E) of Government of India dated 17th February, 2016

G.S.R.501(E).--This notification is being issued in supersession of Gazette Notification No G.S.R. 180 (E) of Government of India dated 17th February, 2016.

Definition

An entity shall be considered as a Startup:

a) if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; and

b) up to seven years from the date of its incorporation/ registration; however, in the case of Startups in the biotechnology sector, the period shall be up to ten years from the date of its incorporation/ registration; and

c) if its turnover for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores; and

d) if it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.

Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a 'Startup'.

Explanation

i. An entity shall cease to be a Startup on completion of seven years from the date of its incorporation/ registration ........