Policies
Government of India in continuation to the Startup Initiative (read here on announcements to date), as a part of the 19 points Action Plan to empower startups to grow through innovation and design, has now issued a notification dated 17 February 2016 (F. No. 5(91)/2015-BE. I).
The notification defines the term startup and prescribes the procedure for obtaining tax benefits.
According to the Startup Guideline issued by Government of India, Ministry of Commerce and Industry an entity shall mean a Private Limited Company (under The Companies Act, 2013) or a Registered Partnership Firm (under The Indian Partnership Act, 1932) or Limited Liability Partnership (under The Limited Liability Partnership Act, 2008).
To fall under this exemption scheme MSMEs have to
1. file Industrial Entrepreneurs Memorandum, or
2. Industrial Licensewith the Secretariat of Industrial Assisstance, Department of Industrial Policy and Promotion, GOI.