Startup India Seed Fund Scheme

Here is what you must go through to make sure you fall under the Startup India Seed Fund Scheme eligibility.

For Startups

1. The startup must be DPIIT (Department for Promotion of Industry and Internal Trade) recognized and should be incorporated not later than 2 years at the time of application.
2. Startup wishing to apply for seed funding must have a business idea that fits the market and has a high scope of scaling in future.
3. A Startup is eligible for SISFS if it uses technology in the core product or service, or business model, or distribution model, or methodology for solving the problem.
4. For being capable for Startup India Seed Fund Scheme, the prior preference is given to startups aiming to create an innovative solution. The startups having solutions to look into the social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas textiles etc.
5. No startup should have gained monetary support from any Central or State Government of more than Rs. 10 Lakhs. If gained then, that startup would, unfortunately, will not be eligible to apply under Startup India Seed Fund Scheme. However, it does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to a prototyping facility.
6. As per the Companies Act 2013 and SEBI Regulations 2018, the shareholding of the Indian promoter of the startup should be atleast 51%. And this shareholding shall stay the same at the time of application to incubator for SISFS.
7. No startup can get seed support for their startup more than once.

For Incubators

The Startup India Seed Fund Scheme eligibility criteria for Incubators is as follows: –

1. Incubator must be a legal entity:
   a) A society registered under the Societies Registration Act 1860, or
   b) A Trust registered under the Indian Trusts Act 1882, or
   c) A Private Limited company registered under the Companies Act 1956 or the Companies Act 2013, or
   d) A statutory body created through an Act of the legislature

2. Incubator should be operational for at least two years on the date of application to the SISF scheme.
3. The eligible incubator should make sufficient arrangements like having a sitting capacity of at least 25 individuals.
4. Incubator must have at least 5 startups undergoing incubation physically on the date of application
5. For applying under Startup India Seed Fund Scheme, incubator should have appointed a full-time Chief-Executive Officer (CEO), The CEO must have good knowledge and skills for business development and entrepreneurship. Also, CEO should contain a team responsible for mentoring startups in testing and validating ideas as well as in finance, legal and human resource functions.
6. Incubator must make sure that it should not be disbursing seed fund to incubatees using funding from any third-party private entity
7. Incubator must have been assisted by Central/State Government(s). Where no assistance is provided by Central or State Government then, in that case :-
   a) Incubator must be operational for at least three years
   b) Must have at least 10 separate startups undergoing incubation in the incubator physically on the date of application
   c) Must present audited annual reports for the last 2 years
8. Any additional criteria as may be decided by the Experts Advisory Committee (EAC).