Startups ask for a new definition

Indian Private Equity and Venture Capital Association (IVCA) has submitted a note to the government about the definition of startups ahead of the union budget. It has proposed that a company should be considered a startup as long as it is under 10 years old, and not a subsidiary or outcome of a merger or spin-off, irrespective of its revenue, multiple people aware of the matter. The note also included the proposal for companies to mention beneficial owner names to basically avoid the misuse of the new definition and to keep a check on wide definition abuse possibilities.

Proposal also asked for Alternative Investment Fund (AIF) or a foreign venture capital fund to be considered as a startup and get relevant tax sops. The note has been sent to different stakeholders at government level, including officials in the finance ministry. Inter ministerial Board (IMB), the government certification is yet another way to reboot startups.