Startup India – Benefits
Tax exemptions: Eligible startups can get 3 years of income tax exemption (under Section 80-IAC) and relief from certain capital gains taxes, helping them reinvest profits into growth.
Easy compliance: Simplified regulations like self-certification under labor and environmental laws, faster registrations, and reduced regulatory burden.
Funding support: Access to government-backed funds like the Fund of Funds for Startups (FFS), easier credit through schemes, and support via incubators and accelerators.
Eligibility Criteria (Detailed)
Less than 10 years old: The entity must be incorporated/registered as a Private Limited Company, LLP, or Partnership Firm and should not have completed 10 years from the date of incorporation.
Turnover < ₹100 crore: The annual turnover should not exceed ₹100 crore in any financial year since incorporation.
Innovation-driven: The startup should be working on innovation, development, or improvement of products/services, or have a scalable business model with potential for employment generation or wealth creation.
Not formed by splitting: The business should not be created by dividing or reconstructing an existing business.
Short Exam Definition
Startup India eligibility requires a business to be less than 10 years old, have turnover below ₹100 crore, and be innovation-driven, with benefits like tax exemptions, easy compliance, and funding support.