Overview

Startup India is a key initiative launched by the Government of India, launched in the month of January 2016 to promote and nurture the startup ecosystem. The goal is to support innovation, create jobs, and make India a hub for startups. Under this scheme, eligible startups can register themselves with the Department for Promotion of Industry and Internal Trade, viz. (DPIIT) to access the various benefits provided including tax exemptions, funding support and easier compliance.

Why

Registering under the Startup India scheme provides multiple benefits that help entrepreneurs grow faster and more efficiently: -

1. Tax Exemptions

• Income Tax Exemption: Recognized startups can apply for exemption under Section 80 IAC, which allows a 100% tax deduction on the profits for any three consecutive years out of the first 10 years since incorporation.
• Angel Tax Abolished: As of April 1, 2025, the Angel Tax under Section 56(2) (viib) has been completely abolished, meaning all startups—recognized or not—are exempt from tax on share premiums above fair market value.

2. Funding Support

Access to government-backed schemes like:

• Startup India Seed Fund Scheme (₹945 crore allocated) to help with proof of concept, MVP, product trials, etc.
• Fund of Funds for Startups (FFS) is administered by SIDBI to infuse capital through SEBI-registered venture funds.

3. Self-Certification & Compliance Relief

• Startups can self-certify under 6 labour laws and 3 environmental laws for up to 5 years.
• This minimizes inspection requirements and eases operational burden.

4. Faster Patent and IPR Support

• 80% reduction in patent filing fees.
• Fast-track examination of patent applications.
• Legal help via facilitators at minimal cost.

5. Relaxed Norms for Government Tenders

DPIIT-recognized startups get exemption from:

• Minimum turnover requirement.
• Prior experience criteria.
• Earnest Money Deposit (EMD) for most government tenders.

Process

Here's how you can register your startup under the Startup India initiative:

Step 1: Incorporate Your Entity

Before applying for DPIIT recognition, you must incorporate your business as one of the following:-

• Private Limited Company under the Companies Act, 2013.
• Limited Liability Partnership (LLP) under the LLP Act, 2008.
• Partnership Firm registered under the Indian Partnership Act, 1932.

This process is facilitated by the Ministry of Corporate Affairs (MCA) or the Registrar of Firms, as applicable.

Step 2: Create Account on Startup India Portal

• Go to www.startupindia.gov.in
• Click on "Register" and create an account using email or social login
• Complete your profile dashboard with basic business and founder details

Step 3: Apply for DPIIT Recognition

• Log into your account
• Click on “DPIIT Recognition for Startups”
• Fill in the application form:
    - Legal entity type
    - Incorporation date
    - Incorporation number
    - Details of founders
    - Nature of business
    - Innovation explanation
    - Employment generated (if any)
• Upload the necessary documents (see below)
• Self-certify your business is innovative, original, and not formed by splitting/reconstructing an existing business

Step 4: Submit the Application

• Review all the relevant information.
• Submit the form for DPIIT review.

Once you submitted the application, DPIIT will examine your application, and if everything is in prescribed order, your startup will receive a Certificate of Recognition.

Documents

Below are the documents you must submit while applying for DPIIT recognition:

1. Certificate of Incorporation or Registration

Issued by: -

• The Ministry of Corporate Affairs. (for companies/LLPs)
• Registrar of Firms. (for partnerships)

2. PAN Card of the Business Entity

• Mandatory for tax registration and compliance

3. Details of Directors/Partners

• Names, contact details, and identity proofs of founders or designated partners

4. Brief Write-Up on the Nature of Business

Describe:-

• Your startup’s innovation.
• The problem being solved.
• Your solution.
• How it is different from existing solutions.
• Potential impact and scalability.

5. Website/Product/App Link (if available)

• Demonstrates the prototype, MVP, or actual working product

6. Pitch Deck or Business Presentation (optional but helpful)

• Adds weight to your application

7. Patent or Trademark Details (if applicable)

• Details of any IP filed or granted

8. Letter of Recommendation (in rare cases)

• Not always mandatory, but may be asked in edge cases by DPIIT (e.g., from incubators, investors, or government bodies)

9. Declaration of Not Being a Reconstructed Business

• Self-certification that your entity is original and not a split from an existing company

Fees

1. Government Fee:

• DPIIT recognition itself is free of charge.
• However, incorporation as a company/LLP or trademark/patent filings may involve fees as per standard rates.

2. Professional Fee (if availing consultant help): It varies depending on services opted.

Time

• Startup India DPIIT Recognition: Usually granted within 2 to 10 working days after submission.

• Company Incorporation (if not yet done): Takes around 7–10 working days via MCA.

Note: Timelines may vary depending on document completeness and government workload.

FAQs