Startup India is a flagship initiative of the Government of India to build a strong startup ecosystem. This guide covers everything about Startup India registration and DPIIT recognition.
What is Startup India?
Startup India is an initiative launched in 2016 to promote entrepreneurship, create jobs, and encourage innovation. Under this program, eligible startups can get recognized by DPIIT (Department for Promotion of Industry and Internal Trade) and avail various benefits.
Eligibility Criteria for Startup Recognition
Entity Type
- Private Limited Company
- Limited Liability Partnership (LLP)
- Registered Partnership Firm
Other Criteria
- Age: Entity should not be older than 10 years from incorporation
- Turnover: Annual turnover should not exceed Rs. 100 crores in any financial year
- Innovation: Working towards innovation, development, or improvement of products/services
- Not formed by restructuring: Should not be formed by splitting up or reconstruction
Benefits of Startup India Recognition
1. Tax Exemption (80-IAC)
Eligible startups can claim 100% tax exemption on profits for 3 consecutive years out of the first 10 years.
2. Angel Tax Exemption
DPIIT recognized startups are exempt from angel tax on investments above fair market value.
3. Self-Certification Compliance
Self-certification for 6 labour laws and 3 environmental laws for 3 years.
4. Fast-Track Patent Application
80% rebate on patent filing fees and fast-track examination.
5. Easy Public Procurement
Relaxation of prior experience and turnover norms in government tenders.
6. Government Funding
Access to Fund of Funds (Rs. 10,000 crore corpus) through SEBI-registered AIFs.
7. Easier Winding Up
Simple process to wind up operations within 90 days under Insolvency and Bankruptcy Code.
Documents Required for Startup India Registration
- Certificate of Incorporation/Registration
- PAN of the entity
- Details of directors/partners
- Brief description of products/services
- Proof of concept/prototype (if available)
- Investment details (if received)
- Recommendation letter (optional)
Startup India Registration Process
Step 1: Register on Startup India Portal
Visit startupindia.gov.in and create an account.
Step 2: Fill Recognition Form
Fill the online application with entity details, innovation description, and funding information.
Step 3: Upload Documents
Upload required documents including CoI, PAN, and proof of innovation.
Step 4: Submit Application
Submit the application for DPIIT review.
Step 5: Receive Recognition Certificate
Upon approval, receive DPIIT recognition certificate.
Timeline and Fees
| Component | Details |
|---|---|
| Government Fee | FREE |
| Processing Time | 2-5 working days |
| Professional Assistance (LegalX) | Rs. 2,999 |
Tax Benefits for Startups
Section 80-IAC (Income Tax Exemption)
To claim this benefit, startup must:
- Be a DPIIT recognized startup
- Be incorporated between April 1, 2016 and March 31, 2025
- Get Inter-Ministerial Board (IMB) certification
Section 56(2)(viib) (Angel Tax Exemption)
DPIIT recognized startups are exempt from tax on share premium received from resident investors.
Startup India Schemes
1. Seed Fund Scheme
Grants up to Rs. 20 lakhs for proof of concept and Rs. 50 lakhs for scaling.
2. Credit Guarantee Scheme
Collateral-free loans up to Rs. 5 crores for startups.
3. Patent and Trademark Support
80% rebate on patent filing and 50% on trademark registration.
Frequently Asked Questions
Is Startup India registration mandatory?
No, but it's required to avail tax benefits and other government schemes.
Can e-commerce companies register?
Yes, if they are innovative and meet other eligibility criteria.
Is there any renewal required?
No, recognition is valid for 10 years from incorporation (or until turnover exceeds Rs. 100 crores).
Can existing companies register?
Yes, if incorporated within the last 10 years and meet other criteria.
Why Choose LegalX India?
- Expert Team: Startup compliance specialists
- End-to-End Support: From registration to tax exemption
- High Success Rate: Experienced in DPIIT approvals
- Ongoing Support: Help with scheme applications
Register Your Startup Today
Get DPIIT recognition and unlock startup benefits.
Register Now - Rs. 2,999Written by
CA Rahul Sharma
Chartered Accountant with expertise in startup compliance and business advisory.