Lok Sabha Question No. 1181 (UNSTARRED), answered on 2025-02-11
Subject: Current Status of Startups
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Charanjit Singh Channi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1181.

TO BE ANSWERED ON TUESDAY, THE 11 TH  FEBRUARY, 2025.

## CURRENT STATUS OF STARTUPS

## 1181. SHRI CHARANJIT SINGH CHANNI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the total number and current status of startups started alongwith the number of startups are running well and closed down during the last ten years;
- (b) the total financial benefit to the Government from the startups running well and financial loss incurred from the startups that have closed down during the said period; and
- (c) the total time taken by the Government for starting of new startups the details of steps taken by the Government to simplify the process of starting of new startups?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): The Government with an intent to build a strong ecosystem for nurturing innovation, Startups and encouraging investments launched the Startup India initiative on 16th January 2016.

As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February  2019,  entities  are  recognized  as  'Startups'  under  the  Startup  India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT). As of 31st December 2024, a total of 1,57,706 entities have been recognised as Startups.

The State/Union Territory (UT)-wise number  of entities which have  been recognised as Startups by DPIIT as of 31st December 2024 and the number of entities  recognised  as  Startups  by  DPIIT  which  are  categorized  as  closed  (i.e., dissolved/struck-off)  as  per  the  Ministry  of  Corporate  Affairs  (MCA)  as  of  5 th December 2024 are placed as Annexure-I.

- (b): As a result of  efforts  undertaken  as  part  of  the  Startup  India  initiative,  1,57,706 entities  have  been  recognised  as  Startups  by  the  Department  for  Promotion  of Industry and Internal Trade (DPIIT) which have reportedly created over 17.2 lakh direct jobs as on 31 st  December 2024 across more than 55 industries. Entities which have been recognised as Startups are present across every State and UT in the

country.  Specifically, information regarding financial benefit/loss from Startups is not centrally maintained by the Government.

- (c): The Government has taken various measures to enhance ease of doing business including starting up of business, raising capital, and reducing compliance burden to simplify the regulatory environment and create a conducive business environment. These initiatives aim to extend benefit to all entities/sectors/industries of the economy, including Startups. The key focus areas of the initiatives are:
- i. Simplification of procedures related to applications, renewals, inspections, filing records, etc.,
- ii. Rationalization by repealing, amending or subsuming redundant laws,
- iii. Digitization by creating online interfaces eliminating  manual  forms and records, and
- iv. Decriminalization of minor technical or procedural defaults.

Some of the major steps taken by the Government for ease of Starting up and doing business are as under:-

- i. Setting up of a Centralized Registrar of Companies (CRC) for incorporation to provide uniformity in the incorporation process.
- ii. Introducing e-Form SPICe+ along with a linked form called AGILE PRO-S for  providing different services at one place such as Name Reservation, Incorporation, Allotment of PAN, TAN, DIN, EPFO Registration,  ESIC Registration, GST number, opening of Bank Account etc. at the time of incorporation  of  company  to  start  the  business immediately. Similarly, new e- Form FiLLiP (Form for incorporation of LLP) was introduced for providing the same services in a single application.
- iii. Zero  fee  for  incorporation  of  company  with  authorized  capital  up  to Rs.15.00 Lakh.
- iv. Definition  of  Small  Company  has  been  amended  by  increasing  the threshold  limit  of  a  small  company  from  having  a  paid-up  capital  not exceeding Rs.2.00 Crore to Rs.4.00 Crore and turnover not exceeding Rs.20.00 Crore to Rs.40.00 Crore. Similarly, concept of small LLP has been  introduced  which  is  subject  to  lesser  compliances,  lesser  fee  to reduce the cost of compliances.
- v. Zero cost for shifting of the registered office of a company.
- vi. Convening Annual General Meeting (AGM) and Extra-ordinary General Meeting (EGM) of a company through Video Conference (VC).

The Government has also unveiled the National Single Window System  (NSWS) to provide a single platform to enable the identification and obtaining of approvals and  clearances  needed  by  investors,  entrepreneurs,  and  businesses  in  India. NSWS is providing a single interface to apply for all Government to Business (G2B) clearances from various Ministries/Departments as well as eliminating duplication of work by auto populating form fields across different approvals based on single investor profile.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 1181 FOR ANSWER ON 11.02.2025.

The State/UT-wise number of entities which have been recognised as Startups by DPIIT as of 31st December 2024  and  the  number  of  entities  which  have  been  recognised  as  Startups  by  DPIIT categorized as closed (i.e., dissolved/struck-off) as per the Ministry of Corporate Affairs (MCA) as of 5 th  December 2024 are as under:

| State/UT                                 | Number of entities which have been recognized as Startups by DPIIT   | Number of entities recognised as Startups categorized as closed (i.e., dissolved/struck-off)   |
|------------------------------------------|----------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| Andaman and Nicobar Islands              | 71                                                                   | 3                                                                                              |
| Andhra Pradesh                           | 2553                                                                 | 101                                                                                            |
| Arunachal Pradesh                        | 47                                                                   | 1                                                                                              |
| Assam                                    | 1487                                                                 | 56                                                                                             |
| Bihar                                    | 3190                                                                 | 86                                                                                             |
| Chandigarh                               | 532                                                                  | 19                                                                                             |
| Chhattisgarh                             | 1736                                                                 | 51                                                                                             |
| Dadra and Nagar Haveli and Daman and Diu | 64                                                                   | -                                                                                              |
| Delhi                                    | 16082                                                                | 593                                                                                            |
| Goa                                      | 587                                                                  | 21                                                                                             |
| Gujarat                                  | 13053                                                                | 232                                                                                            |
| Haryana                                  | 8222                                                                 | 243                                                                                            |
| Himachal Pradesh                         | 563                                                                  | 11                                                                                             |
| Jammu and Kashmir                        | 988                                                                  | 34                                                                                             |
| Jharkhand                                | 1477                                                                 | 59                                                                                             |
| Karnataka                                | 16624                                                                | 644                                                                                            |
| Kerala                                   | 6361                                                                 | 197                                                                                            |
| Ladakh                                   | 18                                                                   | -                                                                                              |
| Lakshadweep                              | 3                                                                    | -                                                                                              |
| Madhya Pradesh                           | 5093                                                                 | 149                                                                                            |
| Maharashtra                              | 27925                                                                | 929                                                                                            |
| Manipur                                  | 179                                                                  | 9                                                                                              |
| Meghalaya                                | 62                                                                   | 4                                                                                              |
| Mizoram                                  | 41                                                                   | 3                                                                                              |
| Nagaland                                 | 85                                                                   | 4                                                                                              |
| Odisha                                   | 2769                                                                 | 109                                                                                            |
| Puducherry                               | 161                                                                  | 6                                                                                              |
| Punjab                                   | 1741                                                                 | 38                                                                                             |
| Rajasthan                                | 5567                                                                 | 160                                                                                            |
| Sikkim                                   | 12                                                                   | 1                                                                                              |
| Tamil Nadu                               | 10577                                                                | 269                                                                                            |
| Telangana                                | 8243                                                                 | 301                                                                                            |
| Tripura                                  | 141                                                                  | 9                                                                                              |
| Uttar Pradesh                            | 15019                                                                | 487                                                                                            |
| Uttarakhand                              | 1268                                                                 | 49                                                                                             |
| West Bengal                              | 5165                                                                 | 185                                                                                            |
| TOTAL                                    | 1,57,706                                                             | 5,063                                                                                          |

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