In a recent move to promote startups ventures and to, the Government enlarged the definition of what constitutes a startup to a venture that’s as much as seven years old from five now. It also relaxed the norms for tax benefits and included employment generation potential to give a big push to job creation and entrepreneurship.
A press release of the Department of Industrial Policy and Promotion (DIPP) released on Thursday stated that “These changes are an effort to ensure ease of starting up new businesses to promote the startup ecosystem and build a nation of job creators instead of job seekers,”.
While the overall age limit has been raised for all startups by two years to seven years, it has been increased to 10 for biotechnology firms from the date of incorporation. That’s to account for the longer gestation period for companies in the sector. The government has also eased norms for getting income tax benefits available under the Startup India programme.