Start-ups get an extended window of benefits from the government
The NDA government has now rehashed the definition of a start-up under its 'Start-up India' scheme.
This move is aimed to promote ease of business and eliminate hiccups for budding entrepreneurs in receiving incentives slotted for start-ups.
Enterprises will now be considered as a start-up for seven years from the date of their official incorporation.
Here's all you need to know.
Start-ups will now get benefits for seven years
Significant changes made
From now on, a start-up would mean an entity, which has been operating officially for 7 years or less; the previous limit was 5 years.
In case of start-ups in the bio-tech sector, the window has been pushed up to 10 years.
Furthermore, start-ups will no longer need a letter of recommendation from an incubator or industry association to avail the tax sops.
Creating more job opportunities
This extended period of tax benefits and incentives will help start-ups to solidify their stance and create more jobs.
Department of industrial policy and promotion (DIPP), which is the nodal body for Start-up India said, "These changes are an effort to ensure ease of starting up new businesses to promote the start-up ecosystem and build a nation of job creators instead of job seekers."
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