- As a Private Limited Company as per the Companies Act, 2013, a registered Partnership Firm under Section 59 of the Partnership Act of 1932 or a Limited Liability Partnership under the Limited Liability Partnership Act of 2008 in India; and
- Not prior to 7 years and for Biotechnology Companies, this period would be upto 10 years; and
- With an annual turnover that does not exceed INR 25 Crores in any preceding fiscal year; and
- Working towards innovation, improvement and development of products, processes and services, or if it is a scalable business model that has the high potential of wealth creation or employment generation;
- The entity must not be formed by the split up or reconstruction of a business already in existence and must not be created by the reconstitution or demerger of activity already in existence;
- The entity should not be a holding company nor a subsidiary of any firm already existing. The subsidiary of a startup would be an exception in this rule.
- Location: The entity/ company would be required to be registered in Punjab under the Punjab Shops and Commercial Establishment Act of 1958;
- Employment: The company is expected to employ at the least 50 per cent of its total qualified workforce from Punjab itself, which shall not include any contract employees.