Startups - what you need to know?
Startups in India can be registered under the Companies Act, 2013 in the following forms: Private Limited Company (PLC) [Most Preferred] Limited Liability Partnership (LLP) One Person Company (OPC) A startup is usually incorporated as a Private Limited Company (PLC) due to benefits such as limited liability, easy fundraising, and better credibility . Definition of a Startup (As per DPIIT & Companies Act) A company is recognized as a startup if: It has been incorporated for less than 10 years . Its annual turnover does not exceed ₹100 crore in any financial year. It is working towards innovation, development, improvement of products/processes/services, or has a scalable business model with high growth potential . It is not formed by splitting up or reconstructing an existing business . Recognition is provided by the Department for Promotion of Industry and Internal Trade (DPIIT) . Benefits for Startups under the Companies Act & Government Po...