Updated: Feb 10
Many of you may have heard the word "Startup" in recent times but what exactly does a startup mean. Here in this article let us try to understand the term "Startup" in detail.
An entity can be considered as a Startup:
I. Up to a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
II. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
III. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
FreshtoHome Foods Pvt Ltd
"By the above definition, it is very clear that a startup is a newly incorporated business entity concentrating on Innovation and Production development and capable of wealth generation and Employment"