Quick answerStartup India registration means obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). A private limited company, LLP or registered partnership firm qualifies if it is generally not more than ten years old, its turnover has not exceeded ₹100 crore in any financial year, and it is working on innovation or a scalable business model. Recognition is free and applied for online, and it unlocks tax, intellectual property, compliance and procurement benefits.
- Authority
- DPIIT, Ministry of Commerce and Industry
- Age limit
- Generally up to 10 years
- Turnover limit
- Under ₹100 crore in every year
- Government fee
- Nil
Who is eligible
DPIIT's notification on startup recognition sets the conditions. An entity is treated as a startup if:
- It is incorporated as a private limited company, registered as a partnership firm, or registered as an LLP. Proprietorships and unregistered firms do not qualify.
- Not more than ten years have passed since its incorporation or registration. DPIIT has relaxed this for certain sectors by notification; we check the current position for your sector.
- Its turnover has not exceeded ₹100 crore in any financial year since incorporation.
- It is working towards innovation, development or improvement of products, processes or services, or is a scalable business model with high potential for employment or wealth creation.
- It was not formed by splitting up or reconstructing an existing business.
Recognition ends when the entity crosses the age or turnover limit. A One Person Company is a company and can apply.
Benefits of DPIIT recognition
| Benefit | What it means | Condition |
|---|
| Tax holiday | 100% deduction of profits for any 3 consecutive years out of the first 10 | Company or LLP incorporated within the cut-off date; certificate from the Inter-Ministerial Board |
| Angel tax relief | No tax on share premium above fair value | The provision was abolished for all companies from 1 April 2025 |
| Patents | Expedited examination and a large rebate on patent fees; government-empanelled facilitators | Recognised startup |
| Trademarks | Lower official filing fee, the same as individuals and small enterprises | Recognised startup |
| Public procurement | Relaxation of prior turnover and prior experience conditions in government tenders | Must meet quality and technical requirements |
| Labour and environment laws | Self-certification and fewer inspections for a period after incorporation | As notified by the labour and environment authorities |
| Funding | Access to the Fund of Funds for Startups through SEBI-registered funds, and credit guarantee schemes | Subject to each scheme's rules |
Many state governments, including Punjab's, run startup policies offering grants and reimbursements that also start from DPIIT recognition.
The tax holiday: how it actually works
DPIIT recognition alone does not give the tax holiday. The deduction, which was in Section 80-IAC of the Income-tax Act, 1961 and has been carried into the Income-tax Act, 2025, needs a separate certificate of eligibility from the Inter-Ministerial Board (IMB). Only companies and LLPs qualify, and they must have been incorporated within the cut-off date that each Budget has extended. The IMB looks closely at the innovation claim and the business, and many applications are rejected or asked for more detail.
Once certified, the startup chooses any three consecutive years in its first ten years in which to claim 100% of its profits as a deduction. Most startups choose years in which they expect to be profitable. Minimum alternate tax or alternative minimum tax provisions and the new regime's conditions should be checked with your tax filing advisers before relying on the benefit.
What happened to angel tax
Section 56(2)(viib) of the old Income-tax Act taxed share premium received by an unlisted company to the extent it exceeded fair market value, which hurt startups raising money at high valuations. DPIIT-recognised startups could claim an exemption after filing a declaration. The Finance (No. 2) Act, 2024 abolished the provision with effect from 1 April 2025, so it no longer applies to any company. DPIIT recognition is therefore no longer needed for this purpose, but share issues still need a proper valuation report and compliance under the Companies Act and, for foreign investors, FEMA pricing rules.
Application process
- Profile: create a profile on the Startup India portal and start the recognition application.
- Entity details: enter the incorporation details, registered address, directors or partners, and the stage, sector and industry.
- Innovation write-up: answer the questions on the problem, the solution, how it is innovative and how it is scalable. This is the part DPIIT examines.
- Supporting material: upload the incorporation certificate and, optionally, a pitch deck, website, patents, awards or funding letters.
- Self-certification: declare compliance with the eligibility conditions and submit.
DPIIT usually decides within a few working days to a few weeks and may seek clarifications. The certificate of recognition is issued online with a recognition number.
Is DPIIT recognition worth applying for?
For most young companies and LLPs with a genuinely new product or business model, yes: it is free, takes little time and opens several doors. It is most useful if you:
- plan to file patents, because the fee rebate and expedited examination materially reduce the cost and time;
- want to sell to government departments or public sector undertakings, where the relaxation of turnover and experience conditions, and the startup section on the GeM portal, can make the difference between being eligible to bid or not;
- expect to be profitable within the first ten years and can make a credible case to the Inter-Ministerial Board for the tax holiday;
- want to apply for state startup grants, incubator programmes or the Credit Guarantee Scheme for Startups, which ask for recognition.
Recognition matters less for a conventional trading or service business that will not qualify anyway, and since the abolition of angel tax it is no longer needed for raising equity at a premium. Recognition also does not replace your ordinary compliance: ROC filings, GST, income tax and labour law obligations continue in full.
After you are recognised
The certificate carries a recognition number. Quote it when filing patent and trademark applications to claim the startup fee, and attach the certificate to government tender bids where you claim startup relaxations. Keep the profile on the Startup India portal up to date when your address, directors, partners or business change. DPIIT can revoke recognition if it was obtained on false information or without the required documents, and the benefits availed can then be questioned, so the application must be accurate from the start.
Why applications are rejected
- Generic business description: a trading, reselling or service business without anything new about it rarely qualifies. The write-up must show what is innovative.
- Mismatch with records: the objects in the MOA or LLP agreement, the website and the application should tell the same story.
- Wrong entity type: a proprietorship must first incorporate or register as an eligible entity.
- Restructured business: a business moved from an existing company or firm into a new entity may be treated as reconstruction.
Rejected applications can be refiled with a stronger description and evidence.
Documents you need
For DPIIT recognition we usually need:
- Certificate of incorporation or registration of the company, LLP or partnership firm
- PAN of the entity
- Names, contact details and PAN of directors or partners
- Short description of the product or service and what is innovative about it
- Pitch deck, website link or product demo, if available
- Details of any patents, trademarks, awards or funding received
- Turnover for each financial year since incorporation
How we handle it for you
Eligibility check
We confirm the entity type, age and turnover meet DPIIT's conditions.
Innovation case
We work with you to write a precise, evidence-backed description of your innovation.
File the application
We complete the Startup India portal application and upload supporting material.
Respond to DPIIT
We answer clarifications until the recognition certificate is issued.
Use the benefits
We guide you on the IMB tax holiday application, IP fee rebates and state schemes.
Why clients choose ProudLegal
Advocates who appear in courtYour matter is drafted and argued by enrolled advocates, not call-centre staff.
Company and tax filings in-houseCompany secretaries and tax professionals handle registrations and returns.
Fees agreed in writingYou receive a written fee quote before any work begins.
Updates on WhatsApp and emailEvery hearing date, filing and document is shared as it happens.
Please note: this page explains the law and procedure in general terms as on 30 October 2026. Fees, limits and timelines change, and the facts of each case matter, so take advice on your own papers before acting.
Frequently asked questions
Is there any fee for Startup India registration?
No. DPIIT does not charge any government fee for recognition.
Can a proprietorship get Startup India recognition?
No. Only private limited companies, LLPs and registered partnership firms are eligible.
How old can a company be to get DPIIT recognition?
Generally not more than ten years from incorporation, with relaxations for certain sectors notified by DPIIT.
Does DPIIT recognition give automatic income tax exemption?
No. The tax holiday requires a separate certificate from the Inter-Ministerial Board, and only companies and LLPs qualify.
Is angel tax still applicable to startups?
No. The angel tax provision in Section 56(2)(viib) was abolished from 1 April 2025 for all companies.
How long does DPIIT recognition take?
Usually a few working days to a few weeks, depending on whether DPIIT seeks clarifications.
When does startup recognition end?
When the entity completes the age limit or its turnover exceeds ₹100 crore in a financial year.
Do recognised startups get trademark fee concessions?
Yes. They pay the lower official fee that applies to individuals and small enterprises.
