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Checklist, does your startup qualify in Startup Action plan

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Startup Action plan helps new startup to accelerate their growth and enter into Startup eco system with various government benefits.

PM Narendra Modi has announced Startup India initiative on 69th Independence Day and just after 5 months Startup Action Plan. The plan is a government initiative for booting the startup ecosystem. There are certain important points we will cover it his article. A kind of checklist you can find whether your startup is eligible for the same or not. The action plan has two primary sections.

First is linked with certification, startup India hub, digital platform, costing, norms, etc. And the second one is linked with funding, tax exemptions, incubation, etc. Below there are details that will guide you for the action plan and a short checklist whether your startup is eligible to quality or not.

Checklist

  • There is a difference between Startup and Business. Startup is a new innovative company that aims to commercialize the innovative product, service or process. Defining Startup is essential.
  • Integrating the new Startup with Startup India Hub, so that there must be a centralized platform to locate and exchange information. This boost knowledge growth and funding.
  • The Startup must be registered entity. It must be incorporated as a Pvt Limited Company, or a Registered Partnership firm or a Limited Liability Partnership firm under respect acts. The Startup must not have exceed more than years from the date of registration/incorporation.
  • As per Companies Act, 2013 the Annual Turnover must not be over Rs.25.crore for the new startup to qualify for the action plan.
  • The startup core business must be around innovating or developing or deploying new products, services or process driven by technology. Commercialization of products should be the most important part of Startup plan associated with new products, service or process.
  • Mobile App and Portal are two necessary parts to move ahead. The Government has setup a single platform for Startup to interact with Government and regulatory institutions. Startups can track various information related to registration and many other process.
  • Companies who are splitted or under reconstruction or are in business already cannot be a part of startup.
  • In order to validate the nature of business, a startup has to obtain certifications from DIPP (Inter-Ministerial Board).

Takeaways:

  • After 5 months of Startup India initiative, PM Narendra Modi announced Startup Action plan.
  • The action plan offers helpful information on startup to form and create identity and enter the startup econ system.
  • The action plan help startups to take benefit from various government schemes via centralized platform.
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