Question

A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than

• A. Rs.10 crore
• B. Rs.100 crore
• C. Rs.50 crore
• D. Rs.1 crore

Answer 1

The Correct Option is B

The question pertains to the definition of a startup in India based on its annual turnover. Specifically, it is highlighting a threshold for annual turnover to be classified as a startup by the Indian government.

According to the current guidelines set by the Department for Promotion of Industry and Internal Trade (DPIIT), a startup is defined as an entity:

• That is headquartered in India.
• Has been in existence for less than 10 years from the date of its incorporation/registration.
• Has an annual turnover not exceeding Rs. 100 crore in any of the financial years since its incorporation/registration.

From these criteria, we understand that the annual turnover threshold for a startup is less than Rs. 100 crore. This aligns with the correct answer provided.

Now, let's evaluate the given options:

• Rs. 10 crore: This is too low compared to the current threshold.
• Rs. 100 crore: This is the correct threshold as per DPIIT guidelines.
• Rs. 50 crore: While this might seem reasonable, it is not the threshold defined by the current policy.
• Rs. 1 crore: This is significantly lower than the actual threshold.

Thus, option Rs. 100 crore is the correct answer. This allows more SMEs to be classified as startups and avail themselves of benefits such as tax exemptions and increased support for growth.