What is a startup? The definition just changed

Widening the definition of startups, the Government on Thursday made minor changes, allowing the ventures to take benefit from the Startup India Action Plan for the first seven years, as opposed to five years earlier.

"These changes are an effort to ensure ease of starting up new businesses to promote the startup ecosystem and build a nation of job creators instead of job seekers," the Department of Industrial Policy and Promotion (DIPP) said.

However, in the case of start-ups in the biotechnology sector, the period will be up to 10 years from the date of incorporation/registration.

The scope of the definition of a start-up was also broadened to include scalability of business model with a potential of employment generation or wealth creation.

"As a constant endeavor to facilitate the start-up ecosystem, the DIPP has been holding extensive consultations with stakeholders. The above changes are an effort to ensure ease of starting new businesses to promote the start-up ecosystem and build a nation of job creators, instead of job seekers," read the DIPP statement.

Prime Minister Modi announced the startup plan in January, last year.

Since the launch of the Startup India Action Plan, many incentives have been announced in order to facilitate smooth working conditions such as tatkal service for startups for filing patents and faster clearance route to save them from the tedious procedures.

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