Startup Definition (As defined by DIPP)

Startup means an entity, incorporated or registered in India :

• Upto a period of seven years from the date of incorporation/registration or upto ten years in case of Startups in Biotechnology sector
• As a private limited company or registered as a partnership firm or a limited liability partnership
• With an annual turnover not exceeding Rs. 25 crore for any of the financial years since incorporation/registration
• 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

Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.

An entity shall cease to be a Startup:

• On completion of seven years from the date of its incorporation/registration, ten years in case of Startups in Biotechnology sector, or
• If its turnover for any previous year exceeds Rs. 25 crore