Startup India is a flagship initiative by the Government of India to build a strong ecosystem for nurturing innovation and startups in the country. The aim is to drive sustainable economic growth and generate large-scale employment opportunities.

 

Eligibility Criteria for Startup India Recognition

To be recognized as a startup under this initiative, an entity must meet the following conditions:

• Age of the Company: It should not have completed 10 years from the date of its incorporation. For startups in the biotechnology sector, this period is up to 15 years.

• Type of Entity: It must be incorporated as one of the following:

  • A private limited company under the Companies Act, 2013.

  • A registered partnership firm under the Indian Partnership Act, 1932.

  • A limited liability partnership (LLP) under the Limited Liability Partnership Act, 2008.

• Turnover: Its annual turnover should not exceed ₹100 crore in any of the financial years since its incorporation.

• Original Entity: It should not have been formed by splitting up or reconstructing an existing business.

• Innovation and Scalability: It should be working towards innovation, development, or improvement of products, processes, or services, or have a scalable business model with a high potential for employment generation or wealth creation.

 

Registration Procedure for DPIIT Recognition under Startup India

The process to get recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative is primarily online:

1. Incorporate Your Business: First, you need to register your business as a Private Limited Company, Partnership firm, or LLP through the regular procedures with the Registrar of Companies (ROC) or the Registrar of Firms.

2. Register on the Startup India Portal:

   • Visit the Startup India website (https://www.startupindia.gov.in/).

   • Click on the 'Register' button.

   • Create a profile by entering the required details like name, email ID, mobile number, and password.

   • Provide details about the startup, such as its name, stage, and type of user.

3. Apply for DPIIT Recognition:

   • Log in to your Startup India profile.

   • Navigate to the 'Recognition' tab and click on 'Apply for DPIIT Recognition'.

   • You will be redirected to the National Single Window System (NSWS) portal.

   • Register on the NSWS portal if you haven't already.

   • Add the form 'Registration as a Startup' and fill in the 'Startup Recognition Form'.

4. Fill the Startup Recognition Form: This form requires details such as:

   • Entity details (name, registered address).

   • Authorized representative details.

   • Details of directors/partners.

   • Information about the startup's activities and how it's working towards innovation, development, or improvement.

   • Self-certification regarding the information provided.

5. Documents Required for DPIIT Recognition: You will need to upload certain documents, which generally include:

   • Certificate of Incorporation/Registration of your startup.

   • PAN card of the entity.

   • Details of directors/partners and their PAN, ID, and address proofs.

   • Proof of registered office address.

   • A write-up about the nature of the business, highlighting its innovation, development, or improvement aspects and scalability potential.

   • Proof of funding, if any.

   • Authorization letter for the authorized representative.

   • Proof of concept (e.g., pitch deck, website link, video).

   • Patent and trademark details, if any.

   • List of awards or certificates of recognition, if any.

6. Submit the Application: After filling in all the details and uploading the necessary documents, accept the terms and conditions and submit the form.

Upon successful application, you will receive a recognition number. The Certificate of Recognition is usually issued after a review of the documents.

 

Benefits of DPIIT Recognition under Startup India

Startups recognized under the Startup India initiative can avail a range of benefits, including:

• Tax Benefits:

  • Income Tax Exemption (Section 80-IAC): Eligible startups can get a 100% income tax rebate on their profits for three consecutive financial years out of their first ten years since incorporation, subject to certain conditions.

  • Exemption under Section 56(2)(VIIB) (Angel Tax): Exemption from tax on investments received above the fair market value from certain investors.

  • Tax exemption on long-term capital gains if invested in a fund notified by the Central Government.

• Intellectual Property Rights (IPR) Benefits:

  • Fast-tracking of patent and trademark applications.

  • Up to 80% rebate on patent filing fees.

  • Facilitators to provide legal support and assist with the filing and prosecution of IPR applications. The government bears the facilitator fees.

• Easier Compliance:

  • Self-certification under certain labour and environmental laws for a period of 3 to 5 years from the date of incorporation, reducing the burden of inspections.

• Access to Funding:

  • Access to the Fund of Funds for Startups (FFS) scheme, which provides capital to startups through Alternative Investment Funds (AIFs).

  • Opportunities to connect with investors through the Startup India Investor Connect platform.

  • Access to the Startup India Seed Fund Scheme (SISFS) for early-stage funding.

• Easier Public Procurement Norms: Exemption from the criteria of 'prior experience/turnover' for participating in government tenders. Startups are also exempted from submitting Earnest Money Deposit (EMD) in government tenders.

• Networking Opportunities: Platforms to connect with other startups, investors, and mentors through Startup India events and programs.

• Incubation and Mentorship Support: Access to government-recognized incubators and mentorship programs.

• Faster Exit: Provision for faster winding up of a company under the Insolvency and Bankruptcy Code, 2016.

• Listing on Government e-Marketplace (GeM): Recognized startups can register as sellers on GeM to sell their products and services directly to government entities.

​

Documents Checklist

• Certificate of Incorporation (ROC)

• PAN card of the company/firm

• Brief write-up of the innovative product/service

• Details of funding (if any)

• IP/Patent details (if available)

• Website or prototype (optional but recommended)

Timeline

• DPIIT recognition is usually granted within 10–15 working days (faster if documents are complete)

 

Important Notes

• DPIIT recognition is mandatory to claim tax and regulatory benefits

• Recognition can be revoked if false or misleading information is submitted

• Not all registered businesses are startups — innovation and scalability are key