What are the eligibility Criteria for Start-up India Initiative

हिंदी में पढ़ें
June 25, 2019
By Advocate Chikirsha Mohanty

The Indian Start-up ecosystem has clearly taken the nation by storm. Backed by factors like massive funding, consolidation activities, driven workforce and a massive domestic market, the fever of entrepreneurial spirit has mushroomed across various cities with such ferocious speed that the country is now being recognized as the biggest start-up hub in the world.

Recognizing the potential and talent of this young entrepreneurial rage, Government has also launched various schemes and plans to promote it. One such move is the Start-up India initiative. Launched on 16th January 2016, the scheme aims to promote Start-ups in India. The government has also published a notification on the eligibility of a Start-up for this scheme. The following eligibility criteria are –

Connect with an expert lawyer for your legal issue

Private company, Partnership or LLP

It must be an entity registered or incorporated as Private Limited Company under Indian Companies Act, 2013 or a Limited Liability Partnership under Indian Limited Liability Partnership Act, 2008 or a Partnership firm, registered under the Indian Partnership Act, 1932.

5 years must not have elapsed since creation

All Start-ups which have been incorporated or registered within past five years from the effective date of this are eligible to participate in this scheme.

Not formed by splitting or restructuring

If a Start-up was formed by splitting an organization into two or more organizations, it would not be eligible under this scheme. Similarly, an organization formed by reconstructing an organization shall also be ineligible.

Annual Turnover not over 25 crores

Annual Turnover of a start-up must not have exceeded rupees twenty-five crores in any of the past years since its incorporation or registration. Turnover means the aggregate value of the amount realized from the supply of goods or provision of services during a particular financial year.

Consult: Top Start-up Lawyers in India

Approval from DIPP that your business is innovative

Every Start-up has to obtain approval from the Inter-Ministerial Board set up by the Department of Industrial Policy and Promotion (DIPP). To obtain approval, you will have to submit an application to corroborate the innovative nature of your business along with supporting documents. Such as:

  • Recommendation from an incubator established in Post-Graduate College in India

  • Recommendation from an incubator funded by the Government of India in relation to a scheme to promote innovation

  • Recommendation from an incubator recognized by Government of India

  • Letter of at least 20% Equity Funding from an Incubation Fund or Angel Fund or Private Equity Fund or Accelerator or Angel Network, registered with Securities Exchange Board of India (SEBI). Such fund must not be listed in the negative list of funds as may be issued by DIPP in future.

  • Letter of funding from Central Government or State Government as a part of any scheme to promote innovation

The patent, filed and published in the Journal of Indian Patent Office, in areas affiliated with the nature of the business being promoted.


These guides are not legal advice, nor a substitute for a lawyer
These articles are provided freely as general guides. While we do our best to make sure these guides are helpful, we do not give any guarantee that they are accurate or appropriate to your situation, or take any responsibility for any loss their use might cause you. Do not rely on information provided here without seeking experienced legal advice first. If in doubt, please always consult a lawyer.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Startup Lawyers

Advocate Bala Janaki
330 Thambuchetty Street , Chennai
35 years Experience
Advocate Prerna Oberoi
Sector 41 , Noida
8 years Experience
Advocate Rajeev Nigam
Kanpur Nagar , Kanpur
26 years Experience
Advocate Ravi Jadhav
Koregaon Park , Pune
12 years Experience

Related Articles

Connect with top Startup lawyers for your specific issue

Startup Law Articles

Labour law compliances for startups in India

Guidelines on naming your company

Decoding a co-founder agreement

All you need to know about your Investor Term Sheet

User Reviews

4.6 - 16 reviews

nice article. Good legal advice

Anurag on Sep 27, 2020

Very good work with the article. Gave a nice clarity about the subject.

Sujata on Sep 25, 2020

thanks for the legal advice

Amar on Sep 08, 2020

nice legal article.

Kishor on Oct 16, 2020

Answered all my legal queries.

Satish on Oct 11, 2020

nice work with the article.

Rajendra on Oct 08, 2020

how to contact a lawyer?

Alok on Sep 23, 2020

Nice piece on the subject.

Anju on Sep 28, 2020

Gave me a very clear idea of the subject.

Jaya on Oct 16, 2020

It’s a very nice article.

Ayushi on Oct 02, 2020

thanks for the information

Pravin on Oct 15, 2020

thanks for the information

Aravind on Oct 19, 2020

very good article. Can you tell me more about the law?

Anita on Oct 05, 2020

thank you for the article

Srikanth on Sep 06, 2020

great content. Thanks.

Vimal on Sep 11, 2020

learned all the basics about the legal issue. Good article. Keep it up.

Rahul on Sep 27, 2020