Definition of Startup (only for the purpose of Government schemes)

In order to give the advantage of the Government Schemes to Startups, Government of India has decided few criterias to be fullfilled. Startups fullfilling the criteria or the definition as per the government are eleigible to take the advantage of the Governemnt Schemes.

Definition of Startup (only for the purpose of Government schemes)

Startup means an entity, incorporated or registered in India not prior to five years, with annual
turnover not exceeding INR 25 crore in any preceding financial year, working towards innovation,
development, deployment or commercialization of new products, processes or services driven by
technology or intellectual property.

Provided that such entity is not formed by splitting up, or reconstruction, of a business already in

Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years
has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/ registration.

Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification
from the Inter-Ministerial Board, setup for such purpose.

Source : http://startupindia.gov.in/actionplan.html