top of page
  • Writer's pictureTaxmarket Services

Startup India Recognition under DPIIT: Support and Incentives for Startups

The Startup India initiative, a visionary program introduced by the Government of India in 2016, aims to nurture entrepreneurship and innovation, offering support measures and incentives to budding startups. A cornerstone of this initiative is the Startup India Recognition under DPIIT, a crucial avenue for startups to gain official recognition and access numerous benefits provided by the government.

What is Startup India Recognition under DPIIT?

The Startup India Recognition under the Department for Promotion of Industry and Internal Trade (DPIIT) is a program that acknowledges and supports startups meeting specific criteria set by the government. This recognition grants access to a plethora of benefits and incentives designed to foster growth and innovation in the startup ecosystem.

Eligibility Criteria for Startup India Recognition

To qualify for Startup India Recognition, startups must adhere to several key eligibility criteria, including:

  • Type of Entity: The startup should be incorporated as a private limited company, a registered partnership firm, or a limited liability partnership.

  • Age of Startup: The startup should not exceed 10 years from the date of its incorporation.

  • Turnover Limit: The annual turnover of the startup should not surpass Rs. 100 crore for any financial year since its incorporation.

  • Focus on Innovation: The startup should be involved in the innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.

  • Certification from IMB: The startup must obtain certification from the Inter-Ministerial Board (IMB) established by DPIIT.

Tax Exemptions for DPIIT Recognition

  • After obtaining the Certificate of Recognition, the startup can apply for Tax exemption under section 80 IAC of the Income Tax Act.

  • The DPIIT recognized startups can apply for Angel Tax Exemption.

  • After obtaining the clearance for Tax exemption, the DPIIT recognized startups are exempted from income tax for 3 consecutive fiscal years out of its first ten years since formation.

Benefits of Startup India Recognition

Upon receiving recognition under the Startup India program, startups can avail themselves of an array of benefits:

  • Self-Certification: Startups can self-certify compliance with various labour and environmental laws for a period of five years, reducing the compliance burden.

  • Tax Benefits: Eligibility for a three-year tax holiday, subject to specific conditions.

  • Funding Support: Access to various funding schemes offered by the government and financial institutions.

  • Simplified Patent Filing: Startups receive an 80% rebate in patent filing fees and expedited examination of patent applications.

  • Incubation Support: Access to support from government-backed incubators and accelerators.

  • Apply for tenders: While making application for government tenders, the Startups are exempted from the "prior experience/turnover" criteria which is applicable to normal companies while applying for government tenders.

  • Networking Opportunities: Opportunities to network with other startups, industry leaders, and investors through events and programs.

Documents Required for Startup India Recognition

The documents required for the DPIIT Certificate of Recognition for Startups is listed as follows:

  1. Certificate of Incorporation or Registration of entity

  2. If the startup received any funding, the Proof of Funding need to furnish for DPIIT Certificate of Recognition for Startups

  3. Document of awards or recognition received by the entity

  4. Document of the patent published by the entity (The patent should be published in the patent journals)

  5. A brief description of the nature of the business. The write-up should contain the following details:

    • Details of how the startup is working towards innovation

    • Development of products or processes or services

    • The scalability in terms of employment generation or wealth creation

Steps to Register Your Startup With Startup India

Step 1: Incorporate Your Business

The first step involves incorporating your venture as a Private Limited Company, Partnership firm, or a Limited Liability Partnership. This includes following standard registration procedures and obtaining the necessary Certificates of Incorporation or Partnership.

Want to start your own company ?

Step 2: Register with Startup India

The registration with Startup India is an online process. Entrepreneurs are required to create a profile on the Startup India website, providing essential details about the startup, access to resources, mentorship programs, and the opportunity to apply for various schemes.

Step 3: Get DPIIT Recognition

After creating the profile, the next crucial step is obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition provides startups access to a range of benefits, including intellectual property services, relaxation in public procurement norms, tax exemptions, and more.

Step 4: Recognition Application and Necessary Documents

The recognition application involves filling out the Startup Recognition Form, providing essential entity details, business activities, and self-certification. The necessary documents include incorporation certificates, proof of funding, and patent/trademark details.

Step 5: Receive Recognition Number

Upon application submission, a recognition number is provided. The certificate of recognition is issued post-examination of the documents, usually within two days of submission.

Step 6: Government Support and Funding

The government offers critical support mechanisms, such as the Fund of Funds, facilitating access to finance and intellectual property protection. It also provides self-certification under labour and environmental laws, easing the regulatory burden on startups.

The Startup India initiative stands as a testament to the government's commitment to nurturing entrepreneurship and innovation. Registering with Startup India is a significant step for startups, offering a gateway to a wealth of support, incentives, and opportunities. It's vital for entrepreneurs to navigate this process and leverage the resources made available for their growth and success.

While this guide offers a comprehensive roadmap, it's essential to seek professional advice when navigating the intricacies of startup registration and compliance.

Want to register your startup ?

Click the button below for a free consultation.



Recent Posts

Request Your Free Consultation