What is a Startup??

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.


Examples:

  1. Coinswitch Kuber

  2. FreshtoHome Foods Pvt Ltd

  3. CRED

  4. Unacademy


"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"

Want to read more?

Subscribe to www.itstimefornews.com to keep reading this exclusive post.

Subscribe Now
26 views0 comments

Recent Posts

See All