Start-ups have become an increasingly popular way to create and develop new businesses in India. With the help of technology, start-ups are becoming the go-to option for entrepreneurs to start a business and make a mark in the industry.

The concept of start-ups has seen a massive upsurge in India since the launch of the Start-up India mission in 2016. This initiative was launched to encourage entrepreneurship throughout the country and to provide incentives for start-ups to grow and expand.

So, what makes start-ups in India different from traditional companies? Let’s take a look.

First, start-ups in India are generally defined as businesses that have been operating for fewer than seven years, have annual turnover of less than Rs 25 crore and are not engaged in manufacturing activities. This means that start-ups are more likely to be innovative and disruptive, as they are not bogged down by the bureaucracy and red-tape associated with traditional companies.

Second, start-ups in India receive a number of incentives that other companies do not. These incentives include tax exemptions, capital subsidies, and access to venture capital as well as government funding. This helps start-ups to establish themselves and grow faster than their more established counterparts.

Finally, start-ups in India are also afforded more legal protection than other companies. Under the Start-up India initiative, start-ups are able to take advantage of specific laws and regulations that protect them from being prematurely closed down. This serves to encourage the growth of innovative and disruptive start-ups.

So, how can a company be recognized or certified to be a start-up in India? Well, the Department for Promotion of Industry and Internal Trade (DPIIT), which is a part of the Ministry of Commerce and Industry, is responsible for certifying and registering start-ups in India.

To qualify for certification, the business must be less than seven years old, with an annual turnover of less than Rs 25 crore and not engaged in manufacturing activities. The company must also have a minimum of two promoters and it must be registered with the Registrar of Companies (RoC). Once the business is registered and certified, it will be eligible for the various incentives provided by the Start-up India initiative.

In conclusion, start-ups in India are different from traditional companies in many ways. Start-ups are encouraged by various incentives, they receive more legal protection, and they are more likely to be innovative and disruptive. In addition, the process to register and certify a start-up is relatively straightforward and should be considered by any entrepreneur looking to start a new business.