India’s Startup policy gives a broader definition for startup for availing the recognition, incentives and regulation. According to it, a startup in normal case can have a prior existence of not more than seven years and should have a turnover not exceeding Rs 25 crores in any preceding year. It should work towards innovation, development or improvement of products or processes or services, or should contribute to sizable employment generation.
Following criteria should be fulfilled by a registered entity to be qualified as a startup:
Not prior to seven years, however for Biotechnology Startups not prior to ten years,
With annual turnover not exceeding Rs 25 crore in any preceding financial year, and
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
The entity should not be formed by splitting up, or reconstruction, of a business already in existence. Once registered, the entity will cease to be a startup if its turnover for the previous financial years has exceeded Rs 25 crore or it has completed 7 years and for biotechnology startups 10 years from the date of incorporation/ registration.
