TMI BlogEligibility criteria for an entity to be considered as Startup w.e.f 19-2-2019X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 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. ii. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees. iii. 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 Star ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igible entity as startup shall be as under: - (i) A Startup shall make an online application over the mobile app or portal set up by the DPIIT. (ii) The application shall be accompanied by- (a) a copy of Certificate of Incorporation or Registration, as the case may be, and (b) a write-up about the nature of business highlighting how it is working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation. (iii) The DPIIT may, after calling for such documents or information and making such enquires, as it may deem fit, - (a) recognise the eligible entity as Startup; or (b) reject the application by providing reasons. Cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enty five crore rupees in respect of shares issued to any of the following persons shall not be included (a) a non-resident; or (b) a venture capital company or a venture capital fund; Provided f urther that considerations received by such startup for shares issued or proposed to be issued to a specified company shall also be exempt and shall not be included in computing the aggregate amount of paid up share capital and share premium of twenty five crore rupees. iii) It has not invested in any of the following assets, (a) building or land appurtenant thereto, being a residential house, other than that used by the Startup for the purposes of renting or held by it as stock-in-trade, in the ordinary course of business; (b) l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Shares and Takeovers) Regulations, 2011 and whose net worth on the last date of financial year preceding the year in which shares are issued exceeds one hundred crore rupees or turnover for the financial year preceding the year in which shares are issued exceeds two hundred fifty crore rupees. (ii) the expressions venture capital company and venture capital fund shall have the same meanings as respectively assigned to them in the explanation to clause (viib) of sub Section( 2) of Section 56 of the Act . Declaration 5. A startup fulfilling conditions mentioned in para 4 (i) and para 4 (ii) shall file duly signed declaration in Form 2 to DIPP that it fulfills the conditions mentioned in para 4. On receipt of such declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Official Gazette. The Government will carry out a review of this notification on or before 31.03.2021. [F. No. 5(4)/2018-SI] ANIL AGRAWAL, Jt. Secy. APPENDIX-I Form-1 Application for certificate for the purposes of section 80-IAC of the Income-tax Act, 1961 1. Name of the Startup - ....................................... 2. Date of incorporation/ registration of Startup - ....................................... 3. Incorporation No./ registration No. ....................................... 4. Address and business location- ....................................... 5. Nature of business ....................................... 6. Contact details of Startup (Phone No. and Email)- ............... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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