'Start- up India' initiative was first announced
by Prime Minister, Mr. Narendra Modi, in his Independence Day
speech. This scheme was launched by the Department of Industrial
Policy and Promotion (hereinafter referred to as the
'DIPP'), and it aims at fostering entrepreneurship and
promoting innovation by creating an ecosystem that is conducive for
growth of Start-ups. The primary objective is for India to become a
nation of job creators instead of being a nation of job seekers.
For this particular purpose, Government has declared a provisional
budget of Rs. 2,500 which will be allotted every year for next four
Recently, over 250 applications were filed to the Department for
seeking benefits under the scheme. As reported by major Indian
dailies, out of these 250 applications only 1 got approved while
others have been rejected by the department. Among the rejected
applications, 170 were rejected due to non- completion of the
process of registration and 25 were rejected as they did not give
the process detail of their business. The only Company which got
the approval, by the department, for registration under this policy
is Hyderabad based Cygny Energy Pvt. Ltd, which provides Inverter-
less home renewal energy controller.
Experts have raised doubts over the registration process as
being too technical and stated that the entire process associated
with finding an incubator is very rigid. In many an instance,
entrepreneurs are having innovative ideas but simply due to the
lack of a background from a reputed college are unable to find the
Shailendra Singh, Joint Secretary, DIPP stated that many of the
ideas which were applied for registration under the policy were not
able to meet the criterial of innovation which is required for
registration under this policy. Explanation No. 4 of the policy
which deals with the innovation aspect of the Start- up, states
"An entity is considered to be working towards
innovation, development, deployment or commercialization of new
products, processes or services driven by technology or
intellectual property if it aims to develop and
a. A new product or service or process, or
b. A significantly improved existing product or service or
process that will create or add value for customers or
Provided that the mere act of developing:
a. products or services or processes which do not have
potential for commercialization, or
b. undifferentiated products or services or processes,
c. products or services or processes with no or limited
incremental value for customers or workflow
Would not be covered under this definition."
The Joint Secretary also pointed out that it is not the case
that Indian Start- ups are lacking innovation in their product or
business model, but the chief reason for such a low clearance rate
is due to the fact that many Start- ups do not apply for
registration under this policy as they are getting funds from other
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The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
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