New Delhi: Over 2,196 new ventures have been recognised by the Department of Industrial Policy and Promotion (DIPP) since the launch of Startup India, easing patent filing and credit availability for them.
Government data shows there has been a spurt in registrations of startups following the change in definition in May 2017, which did away with the requirement of a recommendation letter from an incubator. The definition was also broadened to include “scalability of business model with potential of employment generation or wealth creation.”
“We are yet to assess the job creation potential pegged by startups who have registered with us but the response is encouraging,” a senior official told. Over 800 startups have been recognised by the DIPP in the last two months alone.
Only a few of these, about 50 startups, have qualified for three years of tax holiday in a block of seven years if they are incorporated after April 1, 2016.
In a notification issued on May 25 this year, the government increased maximum age of startups to seven years, from five earlier. For the biotechnology sector, the period was increased up to 10 years from the date of incorporation, keeping in mind the longer gestation period required for such companies.