What Is DPIIT Eligibility Criteria For Startup India Registration?

What should be the company age for Startup India registration? What types of companies can be registered as startup in India? Check here the eligibility criteria for startup India registration.

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DPIIT Eligibility Criteria For Startup India Registration

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India is witnessing a surge in entrepreneurship, evident in the proliferation of digital D2C platforms and the booming tech industry. People from all corners of the country are embracing entrepreneurship, whether as entrepreneurs themselves, aspiring to become one, having family members in business, or simply inspired by the potential for change if given the opportunity.

A lot of people are working on different levels on their own ventures, calling it a startup, but let us tell you that in India, your venture officially becomes a startup only after registering with DPIIT. With this registration, a venture doesn't only qualify to be called as a startup but also become eligible for a plethora of government-run financial support programs.

Let us tell you that as of 1st December, 2023, there are 1,17,254 startups in the country, enjoying benefits on different levels. Sure, you must be feeling a little FOMO after knowing this number, right? Well! Let us tell you still have a chance to redeem! Wondering how? It's simple, just register with DPIIT under startup Indian Scheme and become eligible to be called as a startup as per Government of India's definition. 

If you wish to register for DPIIT, you need to meet certain parameters. Let's scroll down to know how you can become elible for DPIIT registration. But first quickly have a glance at Startup India Scheme and DPIIT.

Startup India Scheme  

The inception of the Startup India Scheme in 2016 marked a pivotal moment in the Indian business landscape, reflecting the government's commitment to fostering innovation and supporting small businesses.

A significant development accompanying this initiative was the transformation of the Department of Industrial Policy and Promotion (DIPP) into the Department for the Promotion of Industry and Internal Trade (DPIIT) in 2019. This alteration positioned DPIIT as the key authority overseeing the entire process of obtaining Startup India recognition. However, it's imperative to note that not every newly established business is eligible for DPIIT registration, as specific criteria govern this process.

DPIIT's Startup India Registration Eligibility Criteria

Company Age

For a business to be considered eligible, its period of existence and operations should not exceed 10 years from the date of incorporation. This time constraint underscores the initiative's focus on nurturing and propelling nascent ventures.

Company Type

Eligible startups must be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership. This requirement ensures a formalized and legally recognized structure for the participating entities.

Annual Turnover

To qualify, a startup should maintain an annual turnover that does not surpass Rs. 100 crore for any of the financial years since its incorporation. This financial threshold aims to include businesses of varying scales while emphasizing the support for smaller enterprises.

Original Entity

The entity seeking DPIIT registration should not have been formed by splitting up or reconstructing an already existing business. This criterion is designed to encourage the formation of truly innovative and independent ventures.

Innovative & Scalable

Eligible startups are those actively engaged in the development or improvement of a product, process, or service. Furthermore, they should possess a scalable business model with high potential for wealth creation and employment generation. This emphasizes the government's commitment to supporting enterprises that contribute to both economic growth and job creation.

Having a clear understanding of these DPIIT eligibility criteria is essential for entrepreneurs aspiring to register their startups under the DPIIT. Meeting these standards not only grants recognition but also opens doors to various benefits and support mechanisms provided by the government. As India continues to nurture its entrepreneurial ecosystem, understanding and adhering to these criteria become fundamental steps for startups on their journey towards growth and success.

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