Start-up refers to a new business that intends to grow by and the solo founder, have employee, and intend to grow by a scalable business model (innovation, development or improvement). It is to be registered with DPIIT. Other features are,
- Start-up is defined by the DPIIT’s start-up notification No. GSR 127(E) dated 19/02/2013.
- No investment for start-up but turnover limit up to 100 crores.
- Start-up status will last till turnover exceeds to 100 crores or 10 years from the date of incorporation whichever is earlier.
- To be recognized as start-up, enterprise must file application for DIIPT recognition in terms of latest start-up notification.
- Only partnership firms, LLPs and private limited companies will be eligible for startup status.
- To quality as a startup, business model must be working towards innovation, development or improvement of product or services. Business model must be scalable with high potential of employment generation or wealth creation
- Enterprise will not qualify as a startup if it is formed by splitting up or reconstruction of business already in existence.
- Tax holiday U/S 80-IAC of the income tax Act, 1961 for a startup which is an LLP or a private limited company.
- Tax exemption U/S 54 GB of the income tax Act, 1961 to capital gains from sale of residential property of promoter, if the same is invested into a private limited company, which is a startup
- Benefits under the MSME Act are not available to startup unless they quality as MSME by satisfying the investment limit in the definition and file Udyam registration. It can be seen that an enterprise may cease to be startup but continue to be regarded MSME and vice versa.
The idea of START-UP is to create maximum employment and to create a business model by innovation, development or improvement of products or services. START-UP recognized as a solution to fast changing business environment. Also, recognized as a solution to compete with international manufactures or service providers. Further recognize as an opportunity for employment creation with speed. Both central government and state government offer more assistance and incentives for promotion of start-ups. Aspire foundation is also to promote the concept of START-UP.
ASPIRE FOUNDATION is competent to support any start up units whether they at initial stage or growth stage.