BY: CA RAJENDRA KHANDELWAL, INDORE

1. As per Definition Startup should be working towards Innovation, Development and Deployment or Commercialisation of New Products, Processes or Services driven by Technology or Intellectual Property. (Here lies the thrust to convince the Govt officials/Incubation centres (Specially govt recognised or operated)/Govt Departments etc which may involve lot of complications/issues which the time will tell)

2. Start up must aim to develop and commercialise either New Product/Services/Process OR significant improvement in existing products or services or processes in the current market which would create further value or add value to customers or workflow, thus companies with similar line of business already there in market place will not get any benefits unless major differentiation is done in Process/product or service.
For example recently OYO Rooms started with Unique model of business by young entrepreneur with the use of technology, another firm called ZO rooms was also following with same model, thus going by definition the ZO Rooms will not be falling within NEW product/services unless there is process or technological differentiater is seen and made the govt official convinced about the same (which would be challenging task)

3. It should not be by way of Splitting up, reconstruction of existing business.
Thus company which is into Product Licensing business and venturing into customised product offering on website/retail/wholesale basis to expand licensing business, same would be treated as expansion of existing business and would not be considered as startup as defined by Govt.

4. Certification from DIPP or setup body for validation of Innovative nature of the business to be obtained. Nothing is to be elaborated on this point as we all know how difficult it is (at the time of STARTUP of the business as an entrepreneur) to deal with Govt. This may involve additional time or effort or people effort who can deal with Govt and drag their focus from Innovation, doing business to liason with Govt officials/organisations.