Startup India Registration
Launched on 16th January 2016, the Startup India initiative by the Government of India aims to build a strong ecosystem for nurturing innovation and startups, driving sustainable economic growth, and generating large-scale employment. Startup India is more than just a flagship program-it’s a revolution to empower startups by simplifying compliance, providing funding support, facilitating ease of doing business, and encouraging innovation.
One of the key steps to avail the benefits under this scheme is Startup India Registration through DPIIT (Department for Promotion of Industry and Internal Trade). This detailed guide covers everything you need to know about Startup India Registration, from eligibility and process to benefits and compliance.
What is Startup India Registration?
Startup India Registration refers to registering your business as a recognized startup by the Department for Promotion of Industry and Internal Trade (DPIIT).
Once recognized as a startup under the scheme, the business enjoys various advantages such as tax exemptions, easier compliance norms, access to government schemes, funding opportunities, and incubation support.
Objective of Startup India Registration
To foster innovation and entrepreneurship
To simplify regulatory processes for startups
To promote employment generation
To encourage wealth creation and economic development
Who Regulates Startup India Registration?
The DPIIT, under the Ministry of Commerce and Industry, is the designated authority that oversees the recognition process and monitors compliance for startups.
Why Should You Register Under Startup India?
- Access to tax incentives and exemptions
- Eligibility for government grants and funds
- Simplified compliance norms
- Priority access to government tenders
- Networking and incubation opportunities
- Enhanced credibility and visibility in the ecosystem
Eligibility Criteria for Startup India Registration
To be eligible for DPIIT recognition under Startup India, your business must meet the following conditions:
Nature of Business Entity
- Private Limited Company - Formed as per the provisions of the Companies Act, 2013
- Limited Liability Partnership (LLP) - Constituted under the Limited Liability Partnership Act, 2008
- Registered Partnership Firm (Under the Partnership Act, 1932)
Age of the Entity
- The organization must have been incorporated or registered within the last 10 years.
Annual Turnover
- The turnover should not exceed INR 100 Crores in any of the financial years since incorporation.
Innovation and Scalability
- The entity should work towards innovation, development, or improvement of products or services.
- The business should operate on a scalable model with strong prospects for generating employment or creating wealth.
Original Entity
- The startup must not be established by dividing or reorganizing an already existing business.
Documents Required for Startup India Registration
Prepare the following documents for a smooth registration process:
Certificate of Incorporation or Registration
PAN Card of the Entity
Details of Directors/Partners with Identification Proofs
A Brief Description of the Business Activities and Innovations
Website URL, Pitch Deck, or Product Video (if applicable)
Details of Patents or Intellectual Property (if any)
Declaration that the Entity is Not a Subsidiary or Reconstructed Business
Step-by-Step Process for Startup India Registration
Incorporate Your Business
First, incorporate your entity under the relevant law:
- Companies Act, 2013 for Private Limited Companies
- LLP Act, 2008 for LLPs
- Partnership Act, 1932 for Partnership Firms
Ensure all necessary documents like PAN, TAN, GST Registration, and Bank Accounts are set up.
Register on Startup India Portal
- Visit the Startup India official website: www.startupindia.gov.in
- Create a user account using your email ID.
- Log in to your profile and select “Register as Startup”.
Apply for DPIIT Recognition
After creating the profile, proceed with the DPIIT recognition application by providing:
- Business details
- Directors or partners’ information
- Nature of business activity
- Description of innovative product/service/process
- Declaration of eligibility
Upload Required Documents
Attach scanned copies of all necessary documents such as incorporation certificate, brief description of the business, and identity proofs.
Submit the Application
Review the information carefully before submission. Once submitted, a recognition number is generated.
Receive Certificate of Recognition
Upon verification by DPIIT officials, you will be issued a Certificate of Recognition, making you eligible for startup benefits.
Post Registration: Startup India Benefits You Can Avail
Tax Exemption under Section 80 IAC
- 100% Tax Exemption on Profits for 3 consecutive years out of the first 10 years post-incorporation.
- Subject to approval from the Inter-Ministerial Board (IMB).
Angel Tax Exemption under Section 56(2)(viib)
- Exemption on tax imposed on share premiums raised from investors.
- Available post IMB approval.
Self-Certification under Labour and Environmental Laws
- Startups are allowed to self-declare compliance under nine labour laws and three environmental regulations.
- Ensures ease of business with reduced inspections.
Easier Access to Government Tenders
- Exemption from prior experience/turnover criteria for tenders.
- Recognized startups get preference in procurement by government departments and PSUs.
Access to Funding Opportunities
- Eligibility to apply for the Startup India Seed Fund Scheme (SISFS) and Fund of Funds for Startups (FFS) managed by SIDBI.
- Provides early-stage funding, capital support, and growth opportunities.
IPR Benefits and Patent Assistance
- 80% Rebate on Patent Filing Fees
- Fast-track examination of patent applications
- Reduced fees for trademark and IP protection
Faster Exit & Winding Up Process
- Simplified exit process under the Insolvency and Bankruptcy Code, 2016
- Winding up within 90 days for recognized startups
Networking Opportunities and Incubation Support
- Access to startup hubs, incubation centres, and accelerator programs
- Participation in startup events, conclaves, and workshops organized by the government
Benefits of Startup India Registration
Tax Exemption under Section 80 IAC
Recognized startups are entitled to a full tax exemption on profits for any three consecutive years within their first ten years of incorporation.
Angel Tax Exemption under Section 56(2)(viib)
Startups are exempted from the tax on share premium received from investors.
Self-Certification Compliance
Startups are permitted to self-certify adherence to nine labour laws and three environmental regulations.
Easier Public Procurement Norms
- No requirement of prior experience or turnover for government tenders.
- Easier access to procurement opportunities.
Access to Funds of Funds (Rs. 10,000 Cr Corpus)
DPIIT-recognized startups can apply for funds through SIDBI-registered Venture Capital Funds.
Faster Patent Examination & IPR Benefits
- 80% rebate on patent fees
- Fast-track examination process
Easier Winding Up Process
Fast-track exit process within 90 days under Insolvency & Bankruptcy Code, 2016.
Networking & Incubation Support
Access to government-listed incubators, accelerators, and corporate partners.
Startup India Schemes You Can Avail After Registration
Startup India Seed Fund Scheme (SISFS)
- Launched in 2021 to provide early-stage funding for proof of concept, prototype development, and market entry.
- Funded via incubators recognized by DPIIT.
Fund of Funds for Startups (FFS)
- Managed by SIDBI, this fund supports venture capital investments in startups.
- Provides growth capital and co-investment opportunities.
Credit Guarantee Scheme for Startups (CGSS)
- Offers collateral-free loans to startups through lending institutions.
- Facilitates access to working capital and term loans.
Startup India Registration vs Company Registration
| Aspect | Startup India Registration | Company Registration |
|---|---|---|
| Governing Authority | DPIIT | Ministry of Corporate Affairs |
| Objective | Avail government benefits & recognition | Legal incorporation |
| Is it Mandatory? | No, but beneficial | Yes, for starting business |
| Tax Benefits | Yes | No |
| Funding Access | Easier | Depends |
| Application Portal | Startup India Portal | MCA Portal |
Common Mistakes to Avoid in Startup India Registration
- Submitting incomplete information
- Applying without proper business documentation
- Not having a valid business model or innovation proof
- Misrepresentation of information (may lead to cancellation).
Frequently Asked Questions (FAQs) on Startup India Registration
What is Startup India Registration?
Startup India Registration is the process of getting your business recognized by the DPIIT (Department for Promotion of Industry and Internal Trade) to avail benefits like tax exemptions, funding access, regulatory support, and government schemes offered under the Startup India initiative.
Who is eligible to apply for Startup India Registration?
Entities incorporated as a Private Limited Company, Limited Liability Partnership (LLP), or a Registered Partnership Firm, not older than 10 years and with an annual turnover not exceeding ₹100 Crores, engaged in innovation or scalable business activities, are eligible.
Is Startup India Registration mandatory for startups?
No, Startup India Registration is voluntary. However, it is highly beneficial if you want to access tax exemptions, government schemes, funding support, and other startup friendly policies.
What are the documents required for Startup India Registration?
- Certificate of Incorporation/Registration
- Details of Directors/Partners
- Brief description of business activities
- PAN of the entity
- Business pitch, website link, or product information (optional but recommended)
Can a Proprietorship Firm register under Startup India?
No, only Private Limited Companies, LLPs, and Registered Partnership Firms are eligible. Sole proprietorships are not considered.
How long does it take to get DPIIT recognition?
The application is acknowledged immediately with a recognition number. However, DPIIT officials may take 7 to 10 working days for verification before issuing the final Certificate of Recognition.
Do applicants need to pay any fee for Startup India Registration?
No, there are no government charges for submitting an application under the Startup India Registration process.
Does Startup India Registration grant automatic tax exemptions?
No, you need to separately apply for tax exemption under Section 80 IAC of the Income Tax Act after obtaining DPIIT recognition.
What are the tax benefits available under Startup India?
- 100% Income Tax Exemption on profits for 3 consecutive years out of the first 10 years.
- Exemption from Angel Tax on share premium received, as per Section 56(2)(viib) of the Income Tax Act.
What is the Startup India Seed Fund Scheme (SISFS)?
The SISFS scheme offers funding support to startups for activities like prototype creation, product testing, market launch, and commercialization, facilitated through incubators recognized by the government.
How does the Fund of Funds for Startups (FFS) support startups?
The FFS is a ₹10,000 Crore initiative overseen by SIDBI, which invests in SEBI-registered Venture Capital Funds. These funds then provide investment to eligible startups.
Is there a turnover limit for startups to remain eligible under the scheme?
Yes, startups with a turnover exceeding ₹100 Crores in any financial year will cease to be recognized as a startup under the scheme.
Can foreign companies or NRIs register under Startup India?
Only Indian-registered entities are eligible to apply, although they may have foreign investors or partners.
What are the labour law benefits available for registered startups?
For the initial five years from incorporation, startups are allowed to self-certify compliance with nine labour laws and three environmental regulations.
What kind of government tenders are startups eligible for?
Recognized startups can apply for government tenders without prior experience or turnover criteria under certain conditions.
Can a startup register if it’s already availing benefits from another government scheme?
Yes, provided it meets the eligibility criteria of Startup India and is not formed by splitting up an existing business.
How can a startup apply for patent rebates under Startup India?
Recognized startups can avail up to 80% rebate on patent filing fees and enjoy fast-track examination of their patent applications by applying through authorized facilitators.
What is the validity of Startup India recognition?
Recognition is valid for up to 10 years from the date of incorporation or until the entity crosses the turnover limit of ₹100 Crores, whichever is earlier.
What happens if a startup provides false information during registration?
If a startup is found to have provided false information, DPIIT can revoke its recognition and benefits, and penalties may apply as per law.
How can I track the status of my Startup India (DPIIT recognition) application?
You can check your application status by logging into your account on the Startup India Portal ( www.startupindia.gov.in ) using your registered credentials.