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How will I qualify as a “Start-up” according to Indian Law? August, 2017

In order to promote entrepreneurship in the country, the Government of India recently amended the definition of a start-up:

  • Considering the long gestation period by start-up to establish, an entity shall be considered a start-up up to seven years from the date of its incorporation/ registration (from earlier 5 years). However, in the case of start-up in the biotechnology sector, the period shall be up to ten years from the date of incorporation/ registration.
  • The turnover does not exceed 25 crores in the last five financial years.
  • The work involved should be aimed towards innovation, development, deployment, and commercialisation of new products, processes, or services driven by technology or intellectual property.