Startup India Registration

Startup India recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) gives eligible new businesses access to tax benefits, easier compliance, cheaper intellectual property protection and government funding schemes. Recognition is free and online, but the application needs a clear description of how the business is innovative or scalable. We help startups apply, and then make use of the benefits, from the tax holiday to angel tax exemption.

Who is eligible

• A private limited company, LLP or registered partnership firm
• Incorporated or registered in India for not more than 10 years
• Annual turnover not exceeding ₹100 crore in any year since incorporation
• Working on innovation, development or improvement of products, processes or services, or a scalable business model with potential for jobs or wealth creation
• Not formed by splitting up or reconstructing an existing business

Benefits of recognition

Tax

• Tax holiday (section 80-IAC): eligible startups incorporated before the cut-off date can claim a 100% deduction of profits for any three consecutive years out of their first ten, after separate approval from the Inter-Ministerial Board.
• Carry forward of losses: eligible startups can carry forward losses even after a change in shareholding, subject to conditions.
• Angel tax: recognised startups were exempt from tax on share premium under section 56(2)(viib), and the provision has since been abolished for all companies.
• ESOP taxation: employees of eligible startups can defer tax on stock options.

Compliance

• Self-certification under several labour and environmental laws
• Faster exit under the insolvency process for startups with simple debt structures
• Lower penalties under the Companies Act for small companies and startups

Intellectual property

• 80% rebate on patent filing fees and lower trademark fees
• Fast-tracked patent examination
• Facilitators for patent, design and trademark filings, with fees paid by the government under the SIPP scheme

Funding and procurement

• Access to the Fund of Funds for Startups through SEBI-registered funds
• Startup India Seed Fund Scheme for early-stage startups through incubators
• Credit Guarantee Scheme for Startups
• Relaxations in public procurement: exemption from prior turnover and experience conditions, and from earnest money, in many tenders, and registration on GeM as a startup

The process

1. Entity: make sure the business is a company, LLP or registered partnership. We can incorporate one if needed.
2. Startup India profile: register on the Startup India portal.
3. Application for DPIIT recognition: entity details, directors or partners, sector, and a description of the innovation, the problem solved and the scalability of the business, with supporting documents.
4. Recognition certificate: issued online, usually within a few weeks, with a DIPP / DPIIT number.
5. Tax benefits: separate applications for the section 80-IAC tax holiday (Form 1 to the Inter-Ministerial Board) and other benefits, where eligible.

After recognition

• Recognition ends after 10 years from incorporation, or earlier if turnover exceeds ₹100 crore
• Keep the profile updated with funding, turnover and employee data
• Keep the regular compliance of the company or LLP on track; recognition does not replace it
• Plan funding rounds with valuation, FEMA and company law requirements in mind; see FC-GPR and RBI compliance for foreign investment

How we help

• Checking eligibility and choosing the right entity
• Writing a clear innovation and scalability description
• Filing the recognition and tax holiday applications
• Trademark and patent filings at startup rates
• Accounting, compliance and investor reporting as the startup grows

Common questions

Can a proprietorship get Startup India recognition?

No. The business must be a private limited company, LLP or registered partnership firm.

Is the tax holiday automatic with recognition?

No. It needs a separate application and approval by the Inter-Ministerial Board, and only startups incorporated within the notified period are eligible.

Is there a fee for recognition?

No, DPIIT recognition is free.