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

Tanvi Labs Private Limited, incorporated in 2022, has had annual turnover below the threshold since inception. It is working on a new drug-delivery device and applies for DPIIT recognition. Which combination of conditions must the DPIIT be satisfied about, apart from the entity type and age?

The entity's turnover must not have exceeded Rs 100 crore in any financial year since incorporation, and it must be working on innovation, development or improvement of products, processes or services, or a scalable business model with high employment or wealth potential. Listing, patents, funding and headcount are not required.

  1. ATurnover has not exceeded Rs 100 crore in any financial year since incorporation, and it is working towards innovation, development or improvement of products or processes, or a scalable business model with high employment or wealth creation potentialCorrect
  2. BNet worth exceeds Rs 100 crore and the entity has at least 50 employees
  3. CThe entity must be listed on a recognised stock exchange and have a patent granted
  4. DThe entity must have received funding from a registered venture capital fund and be a manufacturer only

Explanation

Besides being an eligible entity within the age limit, turnover must not have exceeded Rs 100 crore in any financial year since incorporation. The entity must also be working towards innovation or improvement of products, processes or services, or have a scalable business model with high potential for employment or wealth creation. Listing, patents, funding or employee counts are not criteria.

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