New startup definition by DIPP

1. New Startup Definition
Benefits for Startups in action Plan Now
From CS GAURAV KUMAR SHARMA
9990694230
gauravdelhirav@gmail.com
www.csgauravsharma.com

2. NOW STARTUPS CAN BE PART OF Action Plan
• Entities having a scalable business model with a high potential of employment generation or
wealth creation shall also be considered as a start-up for the purposes of the Action Plan.
• Although ‘scalable’ and ‘high potential’ no where defined or measured now also.
• Now, vide the Notification, DIPP has eased this limit and entities are qualified to claim
benefits under the Action Plan for up to 7 (seven) years from the date of their
incorporation/registration.
• Further relaxation has been provided for entities in the biotechnology sector and they can
avail benefits under the Action Plan for up to 10 (ten) years from the date of their
incorporation/registration.

3. What's New in Registration Process of
Startup Action Plan
• Now, vide the Notification, the registration process has been simplified.
Entities are only required to submit an online application on the DIPP
mobile app/portal along with their certificate of
incorporation/registration, a write-up about the nature of business
highlighting how is it working towards innovation, development or
improvement of products or processes or services, or its scalability in
terms of employment generation or wealth creation and any other
relevant details as may be required.

4. What Extension Tax Benefits now
issued ?
• Now, start-ups can claim tax exemptions for any 3 (three) years out of
first 7 (seven) years of their incorporation. This had already been
announced by the Finance Minister Arun Jaitley in his Budget Speech
on 1 February 2017 and has now been notified vide the Notification.
• Note:- Start-up entities registered as partnership firms are excluded
from being able to claim such tax exemptions. Further, requirement
to obtain a certificate of an eligible business from the Inter-Ministerial
Board of Certification as constituted by the DIPP remains.

5. Thanks for any query feel free to contact
•9990694230
• gauravdelhirav@gmail.com
• www.csgauravsharma.com