Startup India Scheme – DPIIT Recognition, Benefits and Eligibility

Q: What is the Startup India Scheme?

Startup India is a Government of India initiative providing DPIIT recognition to eligible startups, unlocking tax benefits, compliance relaxations, funding access, and government procurement advantages.

Q: Who is eligible for DPIIT recognition under Startup India?

A Private Limited Company, LLP, or Registered Partnership that is not more than 10 years old, has annual turnover below Rs 100 crore, and is working towards innovation or improvement of products, processes, or services.

Q: What is the income tax exemption available to startups under Section 80-IAC?

Eligible startups can claim 100% income tax deduction on profits for any three consecutive years out of the first ten years under Section 80-IAC, subject to CBDT or IMB approval.

Q: How do I apply for DPIIT recognition under Startup India?

Applications are submitted on startupindia.gov.in with entity details, PAN, and an innovation description. Approval typically takes 7-10 working days from complete submission.

Unlock Tax Exemptions, Self-Certification, and Funding Access Through the Startup India Programme

The Startup India initiative, launched by the Government of India in January 2016 and administered by the Department for Promotion of Industry and Internal Trade (DPIIT), is the country's flagship programme for nurturing innovation and startup ecosystems. DPIIT recognition enables eligible entities to claim a three-year income tax exemption under Section 80-IAC, exemption from angel tax on equity investments under Section 56(2)(viib), self-certification for compliance with six labour laws and three environmental laws, fast-track patent examination, and access to a Rs 10,000 crore government-backed Fund of Funds.

Our advisory team assists entrepreneurs in assessing Startup India eligibility, preparing the DPIIT recognition application, and accessing post-recognition scheme benefits. This service connects with our startup registration, MSME registration for qualifying entities, Digital Signature Certificate, and business restructuring advisory for scaling startups.

Our Startup India Advisory Services

DPIIT Recognition Application

End-to-end assistance with eligibility assessment, documentation preparation, and online application submission on the Startup India portal for DPIIT recognition.

Section 80-IAC Tax Exemption

Advisory and filing support for the three-year income tax holiday under Section 80-IAC of the Income Tax Act, available to eligible DPIIT-recognised startups incorporated after 1 April 2016.

Angel Tax Exemption (Section 56)

Guidance on availing the angel tax exemption under Section 56(2)(viib) so DPIIT-recognised startups can raise equity from resident investors without adverse tax consequences.

Self-Certification Compliance

Advisory on exercising self-certification benefits across six labour laws — including the Payment of Gratuity Act and the Contract Labour Act — available to recognised startups for three years from incorporation.

IPR Fast-Track & Fee Rebate

Assistance with fast-track patent examination applications and availing the 80% rebate on patent, trademark, and design filing fees available exclusively to DPIIT-recognised startups.

Startup Seed Fund & GeM Access

Support in accessing the Startup India Seed Fund Scheme (SISFS) and registering on Government e-Marketplace (GeM) with relaxed prior experience and EMD requirements.

Key Benefits of Startup India DPIIT Recognition

Three-year income tax exemption on profits under Section 80-IAC (subject to DPIIT recognition and CBDT approval)
Exemption from angel tax under Section 56(2)(viib) on equity investments from resident investors
Self-certification for compliance with six labour laws and three environmental laws — reducing inspection risk for three years
80% rebate on patent filing fees and fast-track examination to protect innovations at reduced cost
Access to Rs 10,000 crore government-backed Fund of Funds through SEBI-registered Alternative Investment Funds
Relaxed government procurement norms — no prior turnover or experience requirements for GeM tenders

Frequently Asked Questions

What is the Startup India Scheme?

Startup India is a flagship Government of India initiative launched in January 2016 to promote entrepreneurship and build a robust startup ecosystem. DPIIT recognition under this scheme unlocks a suite of tax benefits, compliance relaxations, funding access via government-backed funds, and government procurement advantages for eligible startups.

Who is eligible for DPIIT recognition under Startup India?

An entity is eligible if it is incorporated as a Private Limited Company, LLP, or Registered Partnership Firm; is not more than 10 years old from incorporation; has annual turnover below Rs 100 crore in any financial year; is working towards innovation or improvement of products, processes, or services; and has not been formed by splitting or restructuring an existing business.

What is the income tax exemption available to startups under Section 80-IAC?

DPIIT-recognised startups incorporated on or after 1 April 2016 can claim a 100% income tax deduction on profits for any three consecutive years out of the first ten years of incorporation under Section 80-IAC, subject to CBDT or Inter-Ministerial Board approval. This effectively results in zero income tax liability for those three years.

Is angel tax applicable to DPIIT-recognised startups?

DPIIT-recognised startups are exempt from Section 56(2)(viib) — commonly termed angel tax — on share premium received from resident investors. This exemption is available subject to the startup's recognition status and applicable CBDT notification conditions, making DPIIT recognition essential for startups raising early-stage equity.

How do I apply for DPIIT recognition under Startup India?

Applications are submitted online on the Startup India portal at startupindia.gov.in. Required information includes entity incorporation details, PAN, and a description of the innovative nature of the business. Our team prepares and submits the application and tracks approval — typically within 7–10 working days of a complete submission.

Get Your DPIIT Recognition Today

Expert advisory for Startup India recognition, tax exemptions, and scheme benefits.