The SEED fund is only for registered start-ups as a private limited company with a minimum of 51% ownership by Indian citizens. Under the seed support program, a company will be a start-up as per definition by DPIIT.
- The Start-up should be incorporated as a private limited company
- Turnover should be less than INR 100 Crores in any of the previous financial years
- An entity shall be considered as a start-up up to 10 years from the date of its incorporation
- The Start-up should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth.
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a "Start-up"
Other eligibility criteria:
- Support is not meant for-Indian subsidiaries of MNCs/foreign companies.
- Start-up cannot receive funding more than once from any source and from any of the incubators
- Funding for capital expenditure may not be encouraged
- The application should mandatorily include a declaration by applying start-up that they have not received any NIDHI-seed support from any other DST-supported incubator.
- Monies can be disbursed only to physical resident units
- Shareholding of Indian promoters should be minimum 51%
Incubate should be an Indian start-up. Overseas Citizens of India-OCI and Persons of Indian Origin-PIO are considered as Indian citizens for the purpose of this scheme