The Indian government has announced major changes to the startup policy aimed at boosting innovation and supporting high growth companies. Under the new rules the turnover limit for a company to qualify as a startup has been raised from one hundred crore rupees to two hundred crore rupees in any financial year since incorporation. This change allows more companies to access the benefits of the Startup India program.
A new category of deep tech startups has been introduced to encourage research intensive and technology driven ventures in fields such as artificial intelligence biotechnology advanced materials and semiconductors. Deep tech startups can now retain recognition for up to twenty years from incorporation and have a higher turnover ceiling of three hundred crore rupees.
The revised rules also expand eligibility to certain cooperative societies including multi state cooperatives and other societies registered under state and union territory acts. However companies formed by splitting up or reconstructing existing businesses are not eligible for startup recognition.
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