DPIIT Recognition for Startups

With a strong growing business environment in India, the majority of startups are creating a strong innovative line of business with their impeccable records. Creating more job opportunities and increasing purchasing parity is what the startups are doing. India, from the time of the Make in India initiative and Startup India Scheme, has provided a lot of incentives to the startups’ owners which encourages the owners to do more for their foundations. Pandemic has resulted in various businesses going down. Nevertheless, most of the startups have not only stayed stagnant during the pandemic but have also garnered more profits working online. Let us look into the DPIIT recognition for Startups.

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Promoting investment and Startup eligibility

For getting recognition in the Startup India Action Plan, one needs to come under the definition of Startup to be eligible. As per the Gazette Notification No G.S.R. 364(E) dated April 11, 2018- An entity shall be considered as a Startup:

1. Up to a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
2. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
3. The entity is 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.

Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.

Promoting investment is not an easy task and entails in itself multiple processes and efforts focusing on Ease of doing business, FDI reforms, skill development, infrastructure development, and tax incentives. The Make in India initiative has been putting more and more effort towards making each of the processes light. All such work is done to make India one of the most attractive investment destinations with an even more effective FDI policy regime, of which DPIIT is in charge. Such factors undoubtedly help in lowering any such departmental paper works and concern itself with an automatic route. The Startup India initiative is coordinated by the DPIIT.

Startup India Initiative

With the launch of the Ease of doing business Grand challenge by DPIIT, invited the Startup India initiative for taking part in the flagship program. The aim was to create a robust ecosystem in the country for innovation and startups. The expectation was to promote the investment resulting in economic growth. In 2016, an Action Plan for Startup India was released which covered a variety of topics such as funding support and incentive, partnerships, etc. The objectives of the Startup India Initiative were meant to be fulfilled through all such initiatives. Sparking the entrepreneurship, the recognition will have a strong headway.

Those Startups that fulfill the definition of a startup, stated above, are eligible to apply for the recognition under Startup India Action Plan. All the supporting documents will be needed for the process of registration. The documents will include, certificate of registration, the work details in which the startup is indulged in, mostly with the work of innovation, and development of product or services and how it generates the wealth. In case, the startup has received any funding, the proof of funding needs to be furnished for DPIIT Certificate. In case, any awards or recognition have been received, that can also be furnished. If there is any patent being awarded to the firm, such information must also be furnished.

Author: Saransh Chaturvedi an associate at IP And Legal Filings,  in case of any queries please contact/write back us at support@ipandlegalfilings.com.