Post Startup In­dia, 2,200 Ven­tures Get DIPP Stamp

The Economic Times - - Economy: Macro, Micro & More - Ruchika.Chi­tra­van­shi @times­group.com

New Delhi: Over 2,196 new ven­tures have been recog­nised by the Depart­ment of In­dus­trial Pol­icy and Pro­mo­tion (DIPP) since the launch of Startup In­dia, eas­ing patent fil­ing and credit avail­abil­ity for them. Gov­ern­ment data shows there has been a spurt in reg­is­tra­tions of star­tups fol­low­ing the change in def­i­ni­tion in May 2017, which did away with the re­quire­ment of a rec­om­men­da­tion let­ter from an in­cu­ba­tor. The def­i­ni­tion was also broad­ened to in­clude “scal­a­bil­ity of busi­ness model with po­ten­tial of em­ploy­ment gen­er­a­tion or wealth creation.”

“We are yet to as­sess the job creation po­ten­tial pegged by star­tups who have reg­is­tered with us but the re­sponse is en­cour­ag­ing,” a se­nior of­fi­cial told ET.

Over 800 star­tups have been recog­nised by the DIPP in the last two months alone.

Only a few of these, about 50 star­tups, have qual­i­fied for three years of tax hol­i­day in a block of seven years if they are in­cor­po­rated af­ter April 1, 2016.

TWEAK­ING RULES

In a no­ti­fi­ca­tion is­sued on May 25 this year, the gov­ern­ment in­creased max­i­mum age of star­tups to seven years, from five ear­lier. For the biotech­nol­ogy sec­tor, the pe­riod was in­creased up to 10 years from the date of in­cor­po­ra­tion, keep­ing in mind the longer ges­ta­tion pe­riod re­quired for such com­pa­nies.

With the new def­i­ni­tion now in place, more star­tups would be el­i­gi­ble to get tax ben­e­fits an­nounced in last year’s ac­tion plan.

“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,” a press state­ment by DIPP had said.

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