Are Startups and MSMEs the same thing?

Some startups are MSMEs as well. Let’s find out the difference between the two.

1. Turnover:

2. Startups: Companies with a turnover up to ₹100 crores.
MSMEs: Companies with a turnover up to ₹250 crores.
So, companies with a turnover under ₹100 crores can qualify as both Startups and MSMEs.
Years of Incorporation:

3. Startups: Must be less than 10 years old.
MSMEs: No specific age requirement.
Registration:

4. Startups: Require DPIT registration.
MSMEs: Require Industrial registration.
Some companies have both registrations. However, to get DPIT registration, your product must be unique or innovative and contribute to wealth creation.
So, while a 5-year-old company with a ₹50 crore turnover can qualify as both an MSME and a Startup, it must meet the respective registration requirements.

#finance #business #msme #startup