As per Notification No. G. S. R. 180 [E] Dated 17.02.2016 issued by Ministry of Commerce & Industries, Govt. of India, graphical presentation to understand concept of definition of start-up units eligible for seed funding as well as for availing taxation & other benefits is as follows :
Eligible products / process / services :
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 commercialize:
- A new product or service or process
- A significantly improved existing product or service or process that will create or add value for customers or workflow
Provided that the mere act of developing:
- products or services or processes which do not have potential for commercialization
- undifferentiated products or services or processes
- products or services or processes with no or limited incremental value for customers or workflow would not be covered under this definition
Also, an aspiring start-up unit has to follow / comply with certain administrative, legal aspects in order to register itself as an eligible start-up unit.
Also, as the said scheme is at initial stage at Government level, more & more amendments / clarifications will flow from time to time. Users are requested to be in touch for updates in this regard.