Definition of Startup – SimplifiedShuchita Gupta
Start-up is a common term these days. We hear it frequently, we often read about the success stories, we even use the term from time to time. But how many of us really understand the term? Can a five years old company still be a start-up? Can a Pvt. Ltd. can only be referred to as a start-up? Do start-ups only work on new ideas, new products or services? And the list of questions can go on and on. Government of India through its Startup India initiative has most accurately answered to all such queries and questions. Defined by the Government of India, a Start-up:
- Shouldn’t be more than 10 years old
- Should either have to be a Pvt. Ltd. company registered partnership firm
- Shouldn’t have been formed by demerging or separating a large business into small businesses
- Shouldn’t have a turnover that crosses 100 crores for any financial year
- And most importantly, a start-up should have been formed to either develop or improve a product, a process or a service.
The last mandate is extremely crucial because a start-up with a scalable model will not only provide more employment in the economy of our country but can go beyond borders and that’s when foreign currency will come in boosting the economy.
And the Government has not simply defined the concept clearly, their Start-up India initiative has created a hub for all starts ups to connect and engage. The Government is also helping a lot in terms of certification which lists down what all registration is required for a startup. Through the Government’s e-market initiative, the start ups can easily register themselves in the public procurement platform, commonly known as the GEM platform where all state PSUs, Central PSUs, and other Government organisations go and procure whatever needs they may have. And that’s not all! There are so many Government schemes for every kind of initiative – like they have 9 different schemes that help women entrepreneurs, special schemes for companies working for sustainable solutions and a lot more.
Government and Start-up India have taken a lot of effort to support and help scale the start-ups in India and start-ups should foremost sign up on this platform to reap the benefits and take their start-up to scale-up level.