START-UP ELIGIBILITY AND BEFINITS UNDER THE COMPANIES ACT AND INCOME-TAX ACT
Following conditions are to be met for an entity to be considered as a start-up: Turnover of the entity shall not exceed one hundred crore rupees for any of the financial years. The entity must be a private limited company or a partnership firm or an LLP. Ten years have not been completed since the date of incorporation or registration. The entity should be working towards innovation, development or improvement of its business with a high potential of employment generation and wealth creation. Relaxations under Companies Act, 2013: As Start-up is initially a private company it can get all the exemptions available to Private Company under Companies Act, 2013. Besides above relaxations there are few other relaxations to specifically given to Start-ups under the Companies Act, 2013 which are as follows: · In case a start-up receives an amount o...