Startup India (DPIIT recognition) is a free registration on startupindia.gov.in for an eligible Private Limited Company, LLP or registered partnership that is under 10 years old, has turnover up to Rs 100 crore and works on an innovative product or service. Recognition is usually issued in 24-72 hours. It unlocks the separate Section 80-IAC 3-year income-tax holiday, angel-tax relief, IP-filing rebates, self-certification and Fund-of-Funds access. Beware fake sites charging a "government fee" — the DPIIT application itself costs nothing.
DPIIT recognition on the official startupindia.gov.in portal is completely free. Any site demanding a "government registration fee" for Startup India is misleading — you only pay if you hire a professional to prepare and file the application, or for separate trademark/patent filings (where rebates then apply).
Startup India Eligibility Criteria
To be recognised as a startup by DPIIT, an entity must meet all of the conditions below. A sole proprietorship does not qualify — you need a registered entity first (see Private Limited Company or OPC registration).
| Criterion | Requirement | |
|---|---|---|
| Entity type | Private Limited Company, LLP, or registered Partnership Firm | |
| Age of business | Less than 10 years from date of incorporation | |
| Turnover | Not exceeding Rs 100 crore in any financial year since incorporation | |
| Nature of business | Innovation, development or improvement of products / processes / services, or a scalable model with high potential for employment or wealth creation | |
| Original entity | Not formed by splitting up or reconstructing an existing business | Not eligible |
A proprietorship or HUF is not eligible for DPIIT recognition. There is no minimum funding requirement — bootstrapped startups qualify.
Benefits of Startup India Recognition
DPIIT recognition itself gives compliance and IP benefits immediately; the tax holiday is a separate, more selective approval (covered below).
- Self-certification under 9 labour and 3 environmental laws (3-5 years)
- 80% rebate on patent filing fees; 50% rebate on trademark fees
- Fast-track patent examination and IP support
- Angel-tax relief under Section 56(2)(viib) on investments received
- Loss carry-forward relaxation under Section 79 despite shareholding change
- Easier winding-up (fast-track exit within 90 days)
- Access to the Rs 10,000 crore Fund of Funds (via SIDBI-backed AIFs)
- Preference in Government e-Marketplace (GeM) procurement
Recognition is fast and near-automatic, but the 3-year income-tax holiday under Section 80-IAC needs a further application to the Inter-Ministerial Board (IMB). As of 2026 only a small fraction of DPIIT-recognised startups have obtained the IMB certificate — plan for detailed scrutiny.
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Section 80-IAC allows a DPIIT-recognised startup a 100% deduction of profits for any 3 consecutive years out of its first 10 years. It requires a separate IMB approval, not just DPIIT recognition.
Budget 2025 extended the 80-IAC eligibility window by five years: the startup must be incorporated on or after 1 April 2016 and before 1 April 2030 (earlier cut-off was 1 April 2025). Turnover must stay within Rs 100 crore in the year the deduction is claimed.
| Benefit | Section | Details |
|---|---|---|
| 3-year income-tax holiday | Section 80-IAC | 100% deduction of profits for any 3 consecutive years in the first 10. Needs IMB approval — separate from DPIIT recognition. |
| Angel-tax relief | Section 56(2)(viib) | Investment above fair value received by a recognised startup is relieved from angel tax (conditions apply). Note: angel tax was abolished for all investors from AY 2025-26. |
| Loss carry-forward | Section 79 | Recognised startups can carry forward losses despite a change in shareholding (relaxation from the usual 51% continuity rule). |
The 80-IAC holiday applies only to the old corporate-tax computation of profits; consult a CA on interaction with the concessional 22% / 15% regimes.
Apply for 80-IAC if
- You are an early-stage, innovation-led Pvt Ltd or LLP
- You expect taxable profits within the first 10 years
- You were incorporated on/after 1 Apr 2016
- You can document innovation and scalability for the IMB
Reconsider / plan first if
- You were formed by splitting up an existing business
- Turnover has crossed Rs 100 crore
- You are loss-making with no near-term profits to shelter
- You need the concessional 22% regime instead
How to Apply for DPIIT Recognition
For the tax holiday, file a separate Form 80-IAC to the Inter-Ministerial Board after recognition; for angel-tax matters, follow the Section 56(2)(viib) route on the income-tax portal.
- Certificate of Incorporation / Registration
- CIN (Pvt Ltd) or LLPIN (LLP) or partnership deed
- PAN of the entity
- Brief write-up on the innovative product / service
- Website URL, pitch deck or product screenshots (if any)
- Details of directors / partners
- Company email and mobile for the portal account
- For 80-IAC: audited financials and board resolution
You cannot get DPIIT recognition as a sole proprietor or unregistered firm. Incorporate a Private Limited Company, OPC, LLP or registered partnership first, obtain PAN/TAN, and then apply — the entity type also affects your annual ROC/MCA compliance later.
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