Launched in 2016, Startup India is a flagship initiative of the Government of India to promote innovation, boost entrepreneurship, and support startups with tax, regulatory, and funding benefits. It aims to build a strong ecosystem for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large-scale employment opportunities.

To be recognized as a startup under the Startup India initiative, an entity must meet the following criteria set by the Department for Promotion of Industry and Internal Trade (DPIIT):

• 1. Age of the Entity: Not older than 10 years from the date of its incorporation/registration.

• 2. Type of Entity: Must be registered as one of the following:

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

• 3. Annual Turnover: Should not have exceeded ₹100 crore in any of the previous financial years since its incorporation.

• 4. Innovation & Scalability: The entity must be working towards innovation, development, or improvement of products, processes, or services. Alternatively, it must have a scalable business model with high potential for employment generation or wealth creation.

• 5. Not Formed by Splitting: The business should not be formed by splitting up or reconstructing an existing business.

• Certificate of Incorporation / Registration of the entity.

• PAN card of the company, LLP, or partnership firm.

• A detailed write-up or note on the business and its objectives, highlighting its innovative aspects.

• Details of all directors or partners.

• Website link, Pitch Deck, or a Video pitch (Optional but highly recommended to prove innovation).

• Proof of concept (if available) – such as a patent, product photos, early traction data, or customer validation.

1. Go to the Official Portal: Visit the official Startup India website at https://www.startupindia.gov.in.

2. Create an Account: Sign up by providing your name, email address, and mobile number. Verify the account using the OTP sent.

3. Login and Apply for Recognition: After logging in, navigate to the "DPIIT Recognition" section and click on "Get Recognized".

4. Fill Application Form: Complete the application form with accurate details about your business, its innovative nature, industry, team, and address.

5. Upload Documents: Upload scanned copies of all the required documents as mentioned above.

6. Submit and Track: After submission, you will receive an acknowledgment with an application number. You can use this to track the status of your application online.

7. Certificate Issuance: Upon successful verification and approval, you will be able to download the DPIIT Recognition Certificate, which remains valid until the 10th year of incorporation, provided the turnover limit is not breached.

• Income Tax Exemption: 3 years of tax exemption out of the first 10 years of incorporation (under Section 80-IAC).

• Angel Tax Exemption: Exemption from Angel Tax on investments received above fair market value (under Section 56(2)(viib)).

• Self-Certification: Freedom to self-certify compliance with 9 labor laws and 3 environmental laws, reducing the regulatory burden.

• No Startup Capital Gain Tax: Tax exemption on capital gains when investing in government-notified funds.

• Faster Patent & IPR Application: Get up to an 80% rebate on patent filing fees and enjoy a fast-tracked application process.

• Fast-track Company Winding Up: Ability to wind up the company within 90 days, as compared to the usual 180+ days.

• Access to Government Funding: Eligibility to apply for funding from the ₹10,000 Crore SIDBI Fund of Funds.

• Participation in Govt Tenders: Relaxed norms for public procurement; no prior experience or turnover is required to bid for government tenders.

1. What is DPIIT recognition under Startup India?

DPIIT (Department for Promotion of Industry and Internal Trade) recognition is an official certification that confirms a business meets the Government of India’s definition of a "Startup." This certificate is the key to unlocking all the benefits offered under the Startup India scheme.

2. What entities are eligible for Startup India recognition?

3. What are the age and turnover limits to qualify as a startup?

4. What is meant by “working towards innovation or improvement”?

5. Can an existing business apply?

Yes, an existing business can apply as long as it meets all the eligibility conditions (e.g., under 10 years old, registered as a Pvt Ltd/LLP/Partnership, etc.) and was not formed by splitting up or reconstructing a pre-existing business.

6. How long does the DPIIT recognition process take?

It typically takes 2 to 7 working days if the application is complete and all documents are in order. In case of discrepancies, the department may request additional clarification, which can extend the timeline.

7. Can a startup apply for tax exemption immediately after DPIIT recognition?

No. DPIIT recognition is the first step. To get the 3-year tax exemption under Section 80-IAC, a separate application must be filed with the Inter-Ministerial Board (IMB) through the Startup India portal.

8. What happens if my turnover exceeds ₹100 crore?

Once your turnover exceeds ₹100 crore in any financial year, the entity ceases to be a "startup" under DPIIT norms. Consequently, the benefits associated with the recognition will no longer be available from that financial year onwards.

9. What kind of innovation proof can be submitted?

10. Can foreign-owned Indian subsidiaries register under Startup India?

Yes, as long as the subsidiary is registered in India as a Private Limited Company, LLP, or Partnership Firm and meets all other DPIIT startup criteria, it is eligible for recognition. The nationality of the shareholders or parent company does not disqualify the Indian entity.