Define the term "Start Up". What are the provisions in the Companies Act, with respect to issue of sweat equity shares by Start Up Companies ?

The term Startup is being defined by DPIIT vide Notification No. G.S.R. 127 (E), dated 19th February 2019 An entity shall be considered as a Startup: Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded One hundred crore rupees. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a 'Startup'. Issue of Sweat Equity Shares by Startup Companies As per the amendment in the Companies (Share Capital and Debentures) Amendment Rules, 2020, dated 5th June, 2020, a startup company as defined in notification number G.S.R. 127(E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India, may issue sweat equity shares not exceeding 50% of its paid-up share capital upto 10 (ten) years from the date of its incorporation or registration.