The pace of recognising startups has picked up after the department for promotion of industry and internal trade (DPIIT) tweaked the norms a few years ago, which also enable them to get fiscal and infrastructural support.
A startup registered with DPIIT, for instance, enjoys a simplified compliance structure, 80% reduction in the cost of filing patents, tax exemptions and can wind up its business within 90 days of its application to do so.
While many more startups would have been set up, the recognition by the government is part of a special programme to incentivise entrepreneurs. In fact, the Covid-19 pandemic does not seem to have dampened the spirit in any way with record recognitions given last year (see graphic).
Separate data available with the ministry of corporate affairs had shown a 27% jump in the number of new companies during 2020-21, which added up to over 1.5 lakh, with another 42,000 limited liability partnership firms also being registered during the year.
“As on June 3, 2021, 50,000 startups across have been recognised as startups by DPIIT, of which 19,896 have been recognised since April 1, 2020,” DPIIT said in a statement.
These startups are present across 623 districts with at least one startup in each state and union territory (UT). While Maharashtra, Karnataka, New Delhi, Uttar Pradesh and Gujarat have the highest number of startups, 30 states and UTs have announced specific policies to support them.
To be eligible for registration under Startup India, a government initiative launched in 2016 to bolster the domestic startup ecosystem, a company needs to fulfill several criteria, including being incorporated and registered in India up to 10 years from the date of incorporation and having annual turnover of not more than Rs 100 crore for the financial years since registration.
“Recognized startups have contributed significantly to job creation, with 5,49,842 jobs reported by 48,093 startups with an average number of 11 employees per startup,” the department said.