6 points for Start-up benefits

6 points for Start-up benefits

Posted by P. Charitha on October 4th 2016

The Govt. of India post the budget 2016 has offered new benefits to Start-ups. But before that let’s have a look at and revist  the 6 Eligibility Criteria to be fulfilled to enjoy these exemptions and benefits.
 
#1: Business must be Private Limited Company, One Person Company (OPC), LLP or registered Partnership Firm
 
#2:Turnover of Company to be less than Rs. 25 crore in last financial year
 
#3:Company must not be older than 5 years
 
Entity & Eligibility 
Pvt. Ltd.Company incorporated after 1st April 2014 on the date of application under Scheme, the entity must not be registered for more than 5 years
One Person Company (OPC): OPC incorporated after 1st April 2014
LLP: LLP incorporated after 1st January 2012(tentative period)
Partnership Firm: Firm registered after 1st January 2012 (tentative period)
 
#4:Only Startups involved in developing and commercializing:
New product or service or process
Significantly improve the existing product or service or process to create or add value for customers or workflow
 
#5: Certification from the Inter-Ministerial Board is a must for getting 3 years tax exemptions.
 
#6:Recommendation or Funding requirement
 
Apart from this the startup application for the scheme must be supported by a recommendation certificate for innovative nature of business from any one of the following establishment:
1. Incubator established in a post-graduate college in India like IIT, IIM etc 2. Incubator funded from Government of India (in relation to the project) 3.Incubator recognized by Government of India or Funding by an Incubation Fund 4. Angel Fund or Private Equity Fund or Business Accelerator or Angel Network duly registered with SEBI that endorses innovative nature of the business.

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