start up India

Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design.

 In order to meet the objectives of the initiative, Government of India is announcing this Action Plan that addresses all aspects of the Startup ecosystem. With this Action Plan the Government hopes to accelerate spreading of the Startup movement:

 • From digital/ technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc.; and 

• From existing tier 1 cities to tier 2 and tier 3 citites including semi-urban and rural areas. The Action Plan is divided across the following areas:

• Simplification and Handholding 

• Funding Support and Incentives

• Industry-Academia Partnership and Incubation 

The definition of a Startup is - 

Private Limited Company (under The Companies Act, 2013) or a Registered Partnership Firm (under The Indian Partnership Act, 1932) or Limited Liability Partnership (under The Limited Liability Partnership Act, 2008)
A business is covered under the definition if it aims to develop and commercialize 
• a new product or service or process; or 
• a significantly improved existing product or service or process, that will create or add value for customers or workflow. The mere act of developing 
• products or services or processes which do not have potential for commercialization; or 
• undifferentiated products or services or processes; or 
• products or services or processes with no or limited incremental value for customers or workflow would not be covered under this definition. In order for a “Startup” to be considered eligible, the Startup should 
• be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or 
• be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or 
• be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or 
• be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or 
• be funded by GoI as part of any specified scheme to promote innovation; or
• have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted. * DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.




source - http://www.pradhanmantriyojana.in/wp-content/uploads/2016/01/StartupIndia_ActionPlan_16January2016.pdf