Startup India Scheme
Get recognized as a startup by the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry. Once you get recognized you may avail multiple benefits from the Govt. incl.
Eligibility to apply for Income Tax Exemption for three (3) years
Availing benefits of Pro bono Partners through our facilitation team
Rebates on registering your Intellectual Property Rights incl. Trademark (50%) and Patent (80%)
Eligibility to apply for various Government tenders
Access to register as a service provider on the Government e-Marketplace
Apply and take part in various funding rounds and challenges especially for recognized startups.
All inclusive price of
₹ 11,800/- only
*Inclusive of GST
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Startup India Registration
About the Plan
Startup India is a prominent program launched by the Government of India with the aim of fostering a thriving startup environment and establishing a robust and inclusive framework to promote innovation and entrepreneurship across the country. The Startup India Initiative, initiated on January 16th, 2016, has implemented a range of programs to empower entrepreneurs, cultivate a thriving startup ecosystem, and shift India's focus from job seekers to job creators. These programs are overseen by a dedicated team within Startup India, which operates under the purview of the Department for Industrial Policy and Promotion (DPIIT).
Who are eligible to get Startup India Registration?
To be eligible for Startup India Registration, below criterion should be met:
Company Age: The period of existence and operations of the startup should not exceed 10 years from the date of incorporation.
Type of Company: Only Private Limited Company, Registered Partnership Firm, and a limited liability partnership is eligible to apply for Startup India Registration.
Turnover: The annual turnover of the company should not exceed INR 100 Crores in any of the financial year since its incorporation.
Original Entity: The entity should not have been formed by splitting up or reconstructing an already existing business.
Innovative and Scalable: The entity should work towards development or improvement of a product, process, or service and/or have scalable business model with high potential for creation of wealth and employment.
Documents required to get Startup India Registration:
- Authorisation Letter to submit application for Startup India recognition;
- Certificate of Incorporation/Registration;
- Memorandum of Association (MOA) and Articles of Association (AOA)/Partnership Deed;
- PAN Card of the entity;
- Aadhaar Card of the authorized signatory;
- Patent or trademark registration certificate (if applicable);
- Annual Reports (if applicable);
- A proof of concept (website link/video/pitchdeck) for startups in validation stage and For Early Transaction and Scaling stage, it is necessary to provide a video or pitch deck in addition to a company website; and
- Other relevant documents as may be required by the DPIIT.
Procedure to get DPIIT Certificate
Incorporation of the Business: The first step is to incorporate the business and the entity to be incorporated should be either a Private Company, Registered Partnership firm or an LLP.
Registering Business with the Startup India Scheme: To register with Startup India Scheme, visit www.startupindia.gov.in and Click on ‘Register’ and provide details OR simply register using any of your social media accounts.
Provide OTP and other details like startup as type of user, name and stage of the startup, etc.
Your startup profile will be created.
Apply for Start-up Recognition:
Step 1: Login to your start up account, using your credentials.
Step 2: Go to ‘Get Recognized’ directly (new users).
OR
Dashboard > DPIIT Recognition (existing users).
Step 3: On the ‘Recognition Application Detail’ page, click on ‘View Details’ under the Registration Details section.
Step 4: Fill up the ‘Startup Recognition Form’, upload all the mandatory documents and click on ‘Submit’.
Get the Startup Recognition Number: Once the application is submitted and upon successful verification from the DPIIT, the startup will be recognized and allotted a unique startup registration number.
Benefits of DPIIT Recognisation
Tax Benefits
A recognized startup can avail below tax exemptions.
- Tax exemption under Section 80 IAC: Under this, the startup is exempted from Income tax for a period of 3 consecutive years out of 10 years since incorporation.
- Tax exemption under Clause (Viib) of Sub- Section (2) of Section 56 of the Income Tax Act: A DPIIT recognized startup is eligible to apply for exemption from the provisions of section 56(2)(viib) of the Income Tax Act, i.e., no tax shall be levied on the amounts received as consideration for issue of shares.
Financial Benefits and Funding Benefits: There are many financial benefits and funding benefits that a recognized startup can avail. This includes benefits under Fund of Funds for Startups (FFS), Startup India Fund Scheme (SISFS), ZOHO credits, AWS credits etc.
Regulatory Benefits: Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation and in respect of 3 Environment laws, units operating under 36 white category industries (as published on the website of Central Pollution Control Board) do not require clearance under 3 Environment related Acts for 3 years.
Public Procurment Benefits: DPIIT recognized startups are given preference in government tenders and are exempted from the requirement of:
- Prior Turnover
- Prior Experience
- Earnest Money Deposit
Branding Benefits:
Ø | Fast Tracking of startup patent applications | : | Patent application of startups is fast tracked for examination and disposal.
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Ø | Rebate on filing of application | : | 80% rebate in filing of patents bringing down the cost from INR 8,000 to INR 1,600. 50% rebate in filing of trademarks bringing down the cost from INR 10,000 to INR 5,000.
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Ø | Panel of facilitators to assist in IP applications | : | Facilitators are responsible for providing general advisory on different IPRs, and information on protecting and promoting IPRs in other countries. Central Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable.
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Faster Exit Benefits: The Ministry of Corporate Affairs has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies. Startups with simple debt structures or those meeting such criteria as may be specified may be wound up within a period of 90 days from making of an application for winding up on a fast-track basis.
Checklist to Register Startup India Scheme:
- Check the eligibility criterion before applying for startup India registration
- Keep all the documents ready before applying which includes:
- MOA and AOA of the Company or partnership deed, whichever is applicable;
- Certificate of Incorporation;
- PAN and aadhar of the authorized signatory;
- Authorisation Letter;
- Board Resolution;
- Pitch deck or video link of the company; etc
How to get Tax Exemptions:
To avail tax exemptions, one needs to apply separately for it after getting recognized under DPIIT.
Procedure to avail 80 IAC Exemption (tax exemption for 3 years)
Step 1: Login at https://www.startupindia.gov.in using your credentials.
Step 2: Click on “Apply for Tax Exemptions” under “Recognition” tab.
Step 3: Click on apply for “Income Tax Exemption” under 80IAC.
Step 4: The basic details of the Company will be automatically prefilled for example name, date of Incorporation, Address of business, nature etc.
Step 5: Upload the mandatory documents including
- MOA (for Company) or LLP Deed (for LLP);
- Board Resolution;
- CA Certified financial statements (Balance Sheet, Profit & Loss statement, Income Tax Returns) for the past three years or from the year of incorporation;
- Start-up Video Link
- Pitchdeck
Step 6: Fill in the Details of Authorised signatory (Name, Designation and Place).
Step 7: Click on “Submit”.
Upon verification, if all the information and documents are appropriate, then exemption under 80IAC will be granted within 3-4 months.
Procedure to avail exemption under Section 56:
Step 1: Login at https://www.startupindia.gov.in using your credentials.
Step 2: Click on “Apply for Tax Exemptions” under “Recognition” tab.
Step 3: Click on “Angel Tax Exemption” under Section 56.
Step 4: The basic details of the Company will be automatically prefilled for example name, date of Incorporation, Address of business, nature etc.
Step 5: Upload the Declaration form for exemption on the letter head of the company.
The declaration should be in pdf format and digitally signed by the authorized signatory of the company.
- You can access the sample declaration format at: https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/Declaration%20by%20a%20Startup%20for%20exemption%20under%20Section%2056.pdf.
Step 6: Click on “Submit”.
Upon verification, if all the information and documents are appropriate, then exemption under Section 56 will be granted within a week.
Startup India Registration FAQ
The government has announced Startup Seed fund scheme and Funds of Funds scheme for startups. The recognized startups can apply for these schemes and avail the benefits.
Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. This enables startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.
The following entities are not eligible to get DPIIT Registration:
- Entities whose period of existence is more than 10 years from the date of incorporation.
- Sole proprietorships and Public Limited Companies
- Entities whose annual turnover exceeds INR 100 Crores in any of the financial year since its incorporation.
No, to avail the tax benefits one needs to apply separately for the respective tax exemptions.
Instafiling helps you register under Startup India scheme along with application to various tax exemptions. We have an expert team who make your process a hassle-free one. We are just a call away. Feel free to contact us.
The exact number of startups recognized by DIPP (now known as DPIIT – Department for Promotion of Industry and Internal Trade) may vary over time. But, thousands of startups have received recognition under the Startup India initiative.
DIPP recognition refers to the acknowledgment given to startups by the Indian government under the Startup India initiative. It provides certain benefits and support to eligible startups, such as tax exemptions, easier access to funding, and networking opportunities.
DIPP recognition number is a unique identification number assigned to startups that have been recognized by the government under the Startup India initiative. It serves as a reference for the startup’s recognition status.
Businesses that meet the eligibility criteria defined by the Startup India initiative are eligible for DIPP (DPIIT) certificate. The eligibility includes factors like the type of legal entity, age of the business, turnover limits, and a focus on innovation, scalability, and employment generation.
Startups that meet the criteria set by the Startup India initiative, such as being incorporated as a private limited company, partnership firm, or LLP, having a certain turnover threshold, and working on innovation or improvement, are eligible for Startup India recognition.
To verify your DIPP (DPIIT) certificate, you can visit the Startup India website www.startupindia.gov.in and enter the unique DIPP recognition number assigned to your startup.
DIPP (DPIIT) recognized startups enjoy several benefits, including tax exemptions for a specified period, faster patent application processing, access to various government schemes, easier public procurement processes, and more. These benefits aim to foster the growth and development of startups in India.
The Department for Promotion of Industry and Internal Trade (formerly known as DIPP) is responsible for formulating and implementing policies for promoting industrial growth, entrepreneurship, and internal trade in India.
There are no specific charges for Startup India recognition. The recognition process is free of charge. However, there might be charges associated with other services or registrations that a startup may require or professional fee if services of any professionals are engaged.
DIPP (Department of Industrial Policy and Promotion) was the earlier name of the department responsible for promoting industrial development and investment in India. It has now been renamed as DPIIT (Department for Promotion of Industry and Internal Trade) to reflect its expanded scope of responsibilities.
Businesses engaged in sectors such as non-innovative businesses, real estate development, and services such as legal and accounting are not eligible to register under the Startup India scheme.
DIPP (DPIIT) and MSME (Micro, Small, and Medium Enterprises) are two separate government initiatives. MSMEs are recognized by the Ministry of Micro, Small and Medium Enterprises, while DIPP (DPIIT) recognition is specific to startups and falls under the purview of the Department for Promotion of Industry and Internal Trade.
The minimum requirement for a startup in India includes being incorporated as a private limited company, partnership firm, or LLP, and having a focus on innovation, development, or improvement of products, processes, or services.
The full form of DIPP registration is Department for Promotion of Industry and Internal Trade registration. DIPP has been renamed as DPIIT (Department for Promotion of Industry and Internal Trade) since 2019.
Proof of business can be submitted in the form of documents such as the certificate of incorporation/registration, business plan, product/service description, patents or trademarks (if applicable), and any other relevant supporting documents that showcase the nature of your business.
No, the application for recognition as a startup by DPIIT cannot be filed physically. The application needs to be submitted online through the Startup India website www.startupindia.gov.in
To avail the tax benefits, separate applications need to be submitted for 80 IAC and Section 56 Tax Exemption after getting startup registration certificate.
