Notifying the definition, the Department of Industrial Policy and Promotion (DIPP) said it would bring about 'uniformity' and ensure that only genuine startups get the benefits.

It further said that entities formed by splitting or re-construction of existing businesses will not be considered as startups.

"In order to obtain tax benefits a startup so identified under the above definition shall be required to obtain a certificate of an eligible business from the Inter-Ministerial Board of Certification," DIPP said in a notification.

The Board would consist of Joint Secretary, DIPP, Representatives of Department of Science and Technology, and Department of Biotechnology.

The process of recognition as a 'startup' would be through mobile app/portal of the DIPP.

Startups will also be required to submit a simple application with certain documents including a letter of funding of not less than 20 per cent in equity by any incubation fund/angel fund/private equity fund/ duly registered with SEBI that endorses innovative nature of the business.

It further added that "to bring uniformity in the identified enterprises, an entity shall be considered as a startup- Up to five years from the date of its registration; if its turnover for any of the financial years has not exceeded Rupees 25 crore.''

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