All business startup in India that have been incorporated in the past five years from the effective date of policy will be eligible under this scheme. Simply, all businesses incorporated or registered after February 15, 2011 are eligible to participate in this government startup scheme.
To be eligible startup under this scheme, it must not have an annual turnover of more than Rs. 25 crores in any of the past 5 years since its incorporation.
Only start-ups developing a new product or service or process are eligible under this scheme.
The start-up should not be formed out of splitting or reconstructing of a subsisting business. A business formed out of splitting an organisation into two or more other businesses, then it won’t be eligible under this scheme.
To be eligible under this scheme, a start-up must be incorporated as a Private Limited Company under Indian Companies Act, 2013, a Limited Liability Partnership (LLP) under Indian Limited Liability Partnership Act, 2008 or a partnership firm under the Indian Partnership Act, 1932.