Startup India Program Recognizes Over 114,900 Entities, Fostering Innovation and Growth

• ByStartupStory     |    December 7, 2023

India’s startup ecosystem has witnessed substantial growth, with nearly 1.16 government-recognized startups emerging under the Centre’s initiative aimed at fostering innovation and entrepreneurial ventures. According to Commerce and Industry Minister Som Parkash’s statement in the Lok Sabha, the Startup India program, launched in January 2016, has acknowledged 114,902 entities as startups by October 31, 2023. However, the Startup India government portal indicates that 115,967 startups were registered over nearly eight years.

The criteria for registration involve certain parameters, including a company’s operational existence not exceeding 10 years from its incorporation date. Eligible entities must be registered as private limited companies, partnership firms, or limited liability partnerships, with an annual turnover below Rs 100 crore for any financial year since incorporation.

Entities aiming to register as startups should not emerge from the division or restructuring of existing businesses. They must contribute to product, process, or service development or improvement and possess a scalable business model with potential for wealth creation and employment generation.

Recognized startups are entitled to various government benefits, including self-certification for labor and environmental laws, assistance in patent applications, and tax exemptions under section 80IAC of the Income-tax Act.

Through the SIDBI Fund of Funds scheme initiated in 2016 with a Rs 10,000 crore corpus, 2,977 income tax exemptions have been granted, and 3,654 startups have received funding. The scheme channels capital to SEBI-registered Alternative Investment Funds (AIFs), which, in turn, invest in startups via equity instruments.

Additionally, the Startup India program encompasses a Seed Fund scheme offering financial aid for proof of concept, prototype development, market entry, and a Credit Guarantee Scheme extending credit guarantees to DPIIT-recognized startups by banks, NBFCs, and venture debt funds under SEBI-registered AIFs.

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