Startup

Definition of a StartupThe Government has decided that a startup is: what it calls a startup, and each one needs an ‘approval’. Yes, you heard that right. Here’s the qualifications:1. Private Limited, LLP or Partnership set up less than 5 years earlier.2. Annual turnover less than 25 cr. in all of the past 5 years3. Needs a “certification from an inter-ministerial board“. (only for tax benefits, it seems)Oh, and before you try to go to the inter-ministerial board, the startup needs to have any of the following:1. a recommendation from an incubator in a post-grad college.2. have ‘support’ (whatever that means) or a recommendation from a government funded incubator through an innovation fostering scheme3. be funded by an incubation fund, angel network or private equity fund registered with SEBI4. have an Indian PatentFor Tax and other law benefits you will have to comply with above points.An approved startup will have following benefits1. Tax exemtion for 3 years out of first 5 yrs2. Exemption from 6 labour laws3. Self certification for many laws.4. Capital gain exemptions for investors5. Fast track exit on bankruptcy(90 days)6. Govt organisation will give entry to startups registered under msme to bid for tenders amounting about 20 of total tenders7. Startup hubs participation.ajsomani @ gmail.com