“A startup is a newly established business, usually small, started by 1 or a group of individuals. What differentiates it from other new businesses is that a startup offers a new product or service that is not being given elsewhere in the same way.
The keyword is innovation. The business either develops a new product/ service or redevelops a current product/service into something better. Under the Startup India Initiative, the companies which are registered under DPIIT are eligible to receive the following benefits:
Simplification and Handholding – Easier compliance, easier exit process for failed startups, legal support, fast-tracking of patent applications and a website to reduce information asymmetry.
Funding & Incentives – Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to infuse more capital into the startup ecosystem and a credit guarantee scheme.
Incubation & Industry-Academia Partnerships – Creation of numerous incubators and innovation labs, events, competitions and grants”