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CS Executive · Setting Up of Business, Industrial and Labour Laws · Startups and its Registration

Ishita's company, Brightpath Learning Pvt Ltd, is within the age and turnover limits and is not formed by splitting an existing business. Its business is a routine coaching centre using no new technology and offering nothing new. Which further requirement for DPIIT recognition is it most likely to fail?

Brightpath is likely to fail the innovation and scalability requirement. DPIIT recognition requires the entity to be working towards innovation or improvement of products, processes or services, or to have a scalable model with high employment or wealth potential. A routine coaching centre shows neither.

  1. AWorking towards innovation, development or improvement of products, processes or services, or a scalable business model with high employment or wealth creation potentialCorrect
  2. BHaving a minimum paid-up capital of Rs 1 crore
  3. CObtaining prior approval from SEBI
  4. DEmploying at least 50 persons

Explanation

Besides age and turnover, the entity must work toward innovation or improvement of products, processes or services, or have a scalable model with high potential for employment or wealth creation. A routine coaching centre shows neither. No minimum capital, SEBI approval or headcount is required.

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