Madhya Pradesh Startup Policy 2022: Investment-Linked Assistance — Eligibility Criteria

To qualify for the Investment-Linked Assistance under the Madhya Pradesh Startup Policy 2022, startups must meet several key criteria:

• DPIIT Recognition: The applicant startup must possess valid recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. This ensures compliance with national startup definitions.

• Madhya Pradesh Registration and Operation: The startup must be officially registered and actively conducting its primary business operations within the state of Madhya Pradesh. This requirement aims to stimulate local economic development and job creation within the state.

• Secured Institutional Investment: Applicants must have successfully secured and received investment from an institutional investor recognized by either SEBI or RBI. This includes Alternate Investment Funds (AIFs), Venture Capital (VC) firms, officially recognized angel networks, or other institutional investors formally acknowledged by these regulatory bodies. This criterion serves to validate the startup's potential and market acceptance through third-party due diligence.

• Proof of Investment: Required documentation includes a signed funding agreement with the institutional investor and verifiable proof of the received funds. This proof can be a Foreign Inward Remittance Certificate (FIRC) if the investment originated from outside India, or bank transaction statements confirming the successful transfer of funds.

• Women-Led Bonus Qualification: Startups seeking the additional 20% bonus incentive must be majority women-owned. This means that women founders must collectively hold more than 50% equity in the company. This clause is designed to champion gender diversity in entrepreneurship and provide significant impetus to businesses led by women.

Madhya Pradesh Startup Policy 2022: Investment-Linked Assistance is open to startups at the revenue stage. The programme is targeted at startups registered in Madhya Pradesh. Applicants should be registered as private limited, llp and partnership. Applicants must hold DPIIT (Startup India) recognition.