DPIIT startup recognition: eligibility and benefits

What you get

• 80-IAC tax holiday: income-tax exemption for 3 consecutive financial years out of the first ten since incorporation (separate approval)
• IPR: fast-tracked patent examination, government-borne facilitator fees (you pay only statutory fees), and an 80% rebate on patent filing fees
• Self-certification of compliance with 6 labour laws and 3 environmental laws; no labour inspections for 5 years except on a credible complaint
• Easier winding up (within 90 days for simple debt structures under the IBC) and relaxed public-procurement norms

Eligibility

• Private Limited Company, Registered Partnership Firm, LLP or Cooperative Society
• Up to 10 years from incorporation (20 years for DeepTech)
• Turnover under INR 200 crore in every financial year (INR 300 crore for DeepTech)
• Working on innovation or improvement of products, processes or services with potential for employment/wealth creation; not formed by splitting or reconstructing an existing business
• 80-IAC only: recognised Pvt Ltd or LLP incorporated after 1 April 2016

How DPIIT startup recognition works

Credit types and validity

• Not cash credits; regulatory and tax benefits
• 80-IAC: tax holiday for 3 consecutive financial years out of the first 10 years (separate application; Pvt Ltd or LLP incorporated after 1 April 2016)
• 80% rebate on patent filing fees; facilitator fees borne by the government (SIPP scheme)
• Self-certification under 9 labour and 3 environment laws
• Recognition valid while the entity is a "startup": up to 10 years from incorporation (20 for DeepTech)

How the credits are applied and when they expire

No credits are issued. After you receive the DPIIT certificate, you apply separately for the 80-IAC income tax exemption (and Section 56 exemption) through Startup India. Once the Inter-Ministerial Board clears 80-IAC, you choose 3 consecutive financial years within your first 10 years for the tax holiday.

Approval time

Startup India FAQ: the certificate of recognition is typically issued within 2 working days of successful submission. The 80-IAC tax exemption is decided by the Inter-Ministerial Board, which typically meets once a month.

For founders in India

India-only scheme run by DPIIT, Ministry of Commerce and Industry. The government charges no fee and has appointed no agents or franchises. File the application yourself, using your own details, mobile number and email.

How to apply, step by step

1. Create an account on the National Single Window System (nsws.gov.in)
2. Add the form 'Registration as a Startup', fill it in and upload supporting documents
3. File it yourself — DPIIT charges no fee and has appointed no agents
4. After receiving the DPIIT certificate, apply separately for 80-IAC tax exemption via the Startup India portal and track status on your dashboard

Documents and details to keep ready

• Incorporation/registration details of the entity (support documents are required at application; DPIIT does not list them on this page)
• For 80-IAC: Memorandum of Association (Pvt Ltd) or LLP Deed, and Board Resolution if any
• For 80-IAC: annual accounts and income-tax returns for the last three financial years

Common reasons applications are declined

• Application marked "Incomplete" three times is rejected; you can reapply three months after the rejection email
• Entity type not eligible (must be a Pvt Ltd company, registered partnership, LLP or cooperative society)
• Turnover of ₹200 crore or more (₹300 crore for DeepTech) in any previous financial year
• Older than 10 years from incorporation (20 for DeepTech)
• Formed by splitting up or reconstructing an existing business
• Not working towards innovation or improvement with potential for employment or wealth creation

Tips before you apply

• Don't pay an agent: DPIIT charges nothing and says it has appointed no representatives.
• Fix every query on the first "Incomplete" flag. A third flag means rejection and a three-month wait.
• Recognition and 80-IAC are separate steps. Only Pvt Ltd companies and LLPs incorporated after 1 April 2016 can get 80-IAC.
• A DPIIT certificate is also the gateway to several partner offers listed on Startup India, so get it early.

Terms to know

• Recognition is free; beware of paid agents
• 80-IAC needs a separate approval after recognition