Are you the founder of a groundbreaking and scalable startup? Registration of Startup under DPIIT offers substantial advantages for the advancement and success of your business. Gaining customer credibility, building investor confidence, and accessing government schemes are just a few of the benefits that can significantly enhance your business growth. Registration of Startup under DPIIT is essential to unlock various incentives such as tax exemptions, eligibility for government tenders, and support for entrepreneurship.
In this blog, we shall uncover the step-by-step process of Registration of Startup under DPIIT along with its benefits, eligibility criteria, documents required and tax benefits for registered startups to help you scale your business and make Registration of Startup under DPIIT hassle and stress free.
Let’s Get Started!
Benefits of Registration of Startup under DPIIT
Department for Promotion of Industry and Internal Trade (DPIIT) issues DPIIT Startup Recognition certificate to recognised startups under government norms. The Key benefits of Registration of Startup under DPIIT are listed below: –
- Government Grants and Funding: – Registered startups get easier access to Government Grants and Funds.
- Tax Exemptions: – Registered start-ups can claim a 3-year tax holiday under Section 80-IAC of the Income Tax Act, 1961 along with tax exemption of short term and long-term gains.
- Easier registration of Intellectual Property Rights: – Registered start-ups can claim fee rebates along with fast-track filing of intellectual property such as patent, trademark, copyright, etc.
- Participation in Government tenders: – Registered start-ups gets opportunity to participate in government tenders free of cost.
- Entrepreneurship Support: Government provides incentives and privileges to support and encourage entrepreneurship through Registration of Startup under DPIIT.
- Simplified Compliance: Compliance burden is significantly reduced for registered startups.
- Inspection burdens: – Regulatory inspections are minimised under initial years of business.
- Fast Track Winding Up process: – If the constitution of your business is company, DPIIt recognises provision for fast-track winding up of the company within 90 days under the Insolvency and Bankruptcy Code, 2016.
Registration of Startup under DPIIT focuses to encourage young entrepreneurs to create innovative and scalable startups and tag of “DPIIT recognised” brings a head start for the business.
Eligibility Criteria for Registration of Startup under DPIIT
As a newbie founder, you must check the eligibility criteria to apply for Registration of Startup under DPIIT. The Eligibility Criteria is highlighted in the table below: –
| Particulars | Eligibility criteria |
| Constitution of Business | The constitution of your business shall be either Private Company or Public company or Limited Liability Partnership or Registered Partnership Firm. Non-Registered Partnership firms are not eligible. |
| Age of business | Your Business entity shall be less than 10-year-old from the incorporation date. |
| Turnover limit | The annual turnover of your business entity shall be under Rs. 100 crores since the incorporation date. |
| Product/Service Recognition | Your business entity shall have objectives such as innovation, development or improvement towards any product or service and shall be capable of employment and wealth generation. |
| Original Formation | Your business entity shall be newly incorporated and should not be formed out of any reconstructing process of existing business. |
New founders must have a thorough awareness of the aforementioned eligibility requirements for Registration of Startup under DPIIT in order to prevent delays and unsuccessful registrations.
Documents Required for Registration of Startup under DPIIT
Before you apply for Registration of Startup under DPIIT, you must have all the required documents listed below in a designated folder over the desktop; –
| Particulars | Document Required |
| Mandatory Documents | Certificate of Incorporation in case of companies and LLPs and Partnership deed in cases of registered partnership firms. PAN of the business entity. Latest audited financial statements of last 3 years (if applicable) or provisional financial statements for turnover confirmations. |
| Business Proof | A comprehensive letter in PDF format explaining the details of business and its innovative and scalable nature and how its ability to generate employment and wealth. |
| Director/Partner Details | Residence and identity proofs of all Directors or Partners like PAN and Aadhar are required. |
Step-by-step process of Registration of Startup under DPIIT
Becoming a DPIIT recognised startups requires certain attention to details to avoid potential delays and here is the Step-by-step process of Registration of Startup under DPIIT designed to access government schemes, tax holidays, and easier compliance.
| Steps | Phases | Action required |
| Step 1 | Portal Signup | Create a basic user profile by visiting the Startup India website. Consider this your “master account” for any upcoming dealings with the government. |
| Step 2 | Identity Sync | Click on the “DPIIT Recognition” program after logging in. To retrieve your official records, you must link your CIN/LLPIN and PAN of your entity. |
| Step 3 | The Pitch | This is the heart of the form. You have to explain your business model which should focus on how your business idea is original and how it will create jobs and explain its scalability and innovative nature. |
| Step 4 | Paperwork | Upload your incorporation certificate. Uploading images of your product samples or service brochures, a pitch deck, or a link to your website is highly credible. |
| Step 5 | Submission | Conduct one last data tour. After you click “Submit,” an application number will be sent to you. This is a must-have for tracking. |
| Step 6 | Review & Approval | Your claims will be confirmed by the DPIIT staff. They will use the portal to submit a “clarification” request if they have any questions. |
Tax Incentives for DPIIT-Recognized Startups
Registration of Startup under DPIIT unlocks many fiscal advantages to help your business entity preserve capital and reinvest for growth and development. The table below provides you a summarised breakdown of these tax incentives: –
| Key Provision | Benefit Category | Primary Advantage |
| Section 80-IAC | Corporate Tax Holiday | DPIIT recognised startups gets a 100% tax waiver on profits for any 3 consecutive years within the first 10 years of operations. |
| Section 35(2AB) | R&D Incentives | DPIIT recognised startups gets a weighted deduction of 150% on costs related to in-house research and development. |
| Section 56(2)(viib) | Angel Tax Relief | DPIIT recognised startups gets tax relief on investments received above fair market value from Angel investors or VCs. |
| Section 54GB | Capital Gains Waiver | In certain situations, investments made by specific funds or incubators may not be subject to a capital gains tax for DPIIT recognised startups. |
| Carry Forward Rules | Loss Management | DPIIT recognised startups are eligible to carry forward business losses and set them off against future profits for up to 8 years. |
| Asset Transfer | Investment Exemptions | Capital gains from the sale of residential property are exempt if the funds are used to buy new plant and machinery for the startup. |
| GST Compliance | Easy Indirect Tax Registration | DPIIT recognised startups are eligible for simplified registration and filing processes under specific turnover thresholds. |
Conclusion: Registration of Startup under DPIIT
If you are a newbie founder or entrepreneur wishing for growth and scalability of your business, registration of Startup under DPIIT unlock several advantages in order to encourage entrepreneurship, employment creation and wealth generation. DPIIT recognised startups grow at potential scale due to large fiscal benefits available.
How we can help you: –
We at My Legal Business LLP doesn’t only help startups with their business registration but also help them plan their business in such a way that it always stands legally sound. Our expert team advice and guides you through your journey and take care of entire legal process along with Registration of Startup under DPIIT to let you focus on business matters.
If you are still confused or any have nay doubt in eligibility criteria or cost of registration, contact us today for more information and correct guidance.
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