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

Meera's startup, Kaveri Agritech Private Limited, was incorporated in 2021 and has a turnover of Rs 40 crore in its latest year. Under the DPIIT startup definition, which condition is relevant for her seeking recognition?

Recognition requires an eligible entity type such as a private limited company, LLP or registered partnership firm, incorporation within the prescribed age period, turnover within the prescribed limit, and a focus on innovation or scalability. Public-company-only and minimum-employee rules do not exist, and age and turnover limits do apply.

  1. AThe entity must be a private limited company, LLP or registered partnership firm, be within the prescribed age limit from incorporation, and be below the prescribed turnover limitCorrect
  2. BOnly public limited companies can ever be recognised
  3. CThe entity must have at least 100 employees
  4. DThere is no age or turnover condition at all

Explanation

Recognition requires an eligible form (private company, LLP or registered partnership), incorporation within the prescribed period, turnover not above the prescribed limit, and working towards innovation or scalable job and wealth creation. Public-only and employee-count conditions do not exist. The option denying age and turnover limits is wrong.

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