The Department of Industrial Policy and Promotion (DIPP), which is the nodal body for Start-up India, has amended the definition of a start-up.

• As per the new definition, an entity will be considered as a Start-Up if its turnover is less than Rs 25 crore and has not completed seven years from the date of its incorporation/registration.
• In the definition, the change is with respect to the time period which is currently five years. The new definition has increased it to 7 years taking into the consideration the long gestation period involved in establishing start-ups.
• The process of recognition of an entity as a start-up will be through an online application made over the mobile app/portal set up by the DIPP.
• For the Start-Ups in the biotechnology sector, they will be considered as start-ups for a period of up to 10 years from the date of incorporation/registration.

Start-ups will not require a letter of recommendation from an incubator or an industry association to get tax benefits under the Start-up India action plan.