Question

A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turn over less than
1. Rs. 10 crore
2. Rs. 100 crore
3. Rs. 50 crore
4. Rs. 1 crore

Answer 1

Correct Answer - Option 2 : Rs. 100 crore

The correct answer is Rs. 100 crore.

• A startup is a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market. 
  • An entity shall be considered as a startup if it satisfies all the following conditions:
    • If It is headquartered in India,
    • If it is incorporated/registered in India as
      • Private Limited Company (as defined in the Companies Act, 2013), 
      • Partnership Firm (under Partnership Act, 1932), 
      • Limited Liability Partnership (registered under Limited Liability Partnership Act, 2008).
    • It has not completed ten years since incorporation/registration as above.
    • If its turnover for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
    • If it is working towards innovation, development or improvement of products or processes or services,
    • If it is a scalable business model with a high potential of employment generation or wealth creation.
    • Provided that such entity is not formed by splitting up or reconstruction of a business already in existence.