Startup India Registration

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Startup India Registration

On 15th August 2015, the Hon’ble Prime Minister announced the “Startup India Initiative” which aimed at fostering entrepreneurship and promoting innovation by creating an environment which is suitable for the growth of Startups. Startup India Registration (also known as DPIIT Recognition) was launched by the Government of India to encourage Innovation amongst Startups in the country that will help to increase the economic growth of the country and generate large scale employment opportunities. Growth through promotion of innovative products and services is encouraged by the Government to boost the business of Startups. The DPIIT Recognition is intended to act as a driving force for the Startups to launch and scale greater heights.

“Startup India Action Plan” was made live on 16th January 2016 to meet the objectives of the Startup India Initiative under the able leadership of the Hon’ble Prime Minister Shri Narendra Modi Ji.

Under the Start-up India Action Plan, start-ups meeting the criteria as prescribed under G.S.R. notification 127(E) are eligible to apply for getting Recognition by DPIIT (Department for Promotion of Industry and Internal Trade) under the plan. The Start-ups are required to submit necessary documents, at the time of application for the DPIIT (Erstwhile DIPP) Recognition.

DPIIT Recognition for Startups

Eligibility Criteria For Startup India Registration/ Recognition:

Eligibility Criteria For Startup India Registration/ Recognition

Documents / Checklist For Startup India Registration:




Registration Certificate in case of Partnership Firm/LLP

Certificate of Incorporation in case of Company


PAN of the Entity


Details of the Entity (Registered Address, Industry, Sector, Category, Email ID , Mobile Number)


Name, Address, Email ID, Mobile Number, Photo of the Designated Partners/ Partners in case of LLP/ Partnership Firm

Name, Address, Email ID, Mobile Number, Photo of the Directors in case of Company


Details of the Business, Products, Services, Short Write-up explaining how the products/ services are Innovative and Unique including Revenue Model , Uniqueness of the Product/Service etc.


Proof of concept like pitch deck/website link/ video (in case of validation/early traction/scaling stage startup) respectively


Patent and Trademark details, if any


LLP Agreement/ Partnership Deed in case of LLP/Partnership Firm and

MOA & AOA in case of Company

Features Of Startup India Registration/ Dpiit Recognition

Features Of Startup India Registration/ Dpiit Recognition

Guidelines For Recognition Of Startups: (W.e.f 21.06.2021)

  • Sole Proprietorship Firms : Sole proprietorship firms are not eligible to apply for Startup recognition. If there is change in sole proprietorship firm from one type of entity into a type permissible for recognition, then the recognition will be granted from date of commencement of business of the sole proprietorship
  • Regulatory Areas : Entities operating in areas which are specifically prohibited by law shall not be recognized.
  • Compromise/ Arrangement : Due to Compromise or arrangement under the provisions of the Companies Act 2013, the entities formed will not be recognized as Startup.
  • Merger/ Demerger/ Acquisition/ Amalgamation/ Absorption : Resultant entity or entities formed due to merger demerger/ acquisition/ amalgamation/ absorption shall not be recognized as Startup. But merger or amalgamation under section 233 of the Companies Act, 2013 between any of the following class of companies i.e i.e. 2 or more start-up companies; or 1 or more start-up company with one or more small company will be allowed subject to fulfillment of norms of DPIIT Notification by the resultant company.
  • Incorporating additional entities : Additional entities incorporated having same address with same production line/services and at least one common director/designated partner/partner shall not be eligible to be recognized as startup.
  • Name Change : If any recognized startup is required to change its name under the relevant provisions of the applicable act, the same shall be allowed. From the original date of incorporation/registration or commencement of business by the original entity, whichever is earlier, the benefits will be applicable.
  • Holding Companies/ Subsidiary Companies : They are ineligible for recognition. Any startup becoming holding/subsidiary of any company after recognition will be derecognized.
  • Joint Venture : Any entity formed by Joint Venture will not be recognized. Any Startup entering into any Joint Venture will be derecognized.
  • Entities Incorporated Outside India : Entities incorporated outside India will be ineligible for recognition.

Benefits/exemptions For Startups

Benefits/exemptions For Startups

In Order To Promote Growth And Help Indian Economy, Many Benefits Are Being Given To Entrepreneurs Establishing Start-ups. Let Us See The Benefits In Detail:

  • Simple Process : To get recognized as Startup under DPIIT (Department for Promotion of Industry and Internal Trade), one can simply access through a mobile application and website. A simple form on the website is required to be filled, after inserting the necessary details, required documents are to be uploaded. The entire process is completely online and less time consuming unlike visiting any Govt. Run Office.
  • Reduction in cost : List of facilitators of patents and trademarks has been provided by the Government. Their role is to assist the Startups with the Intellectual Property Right Services including fast examination of patents at lower fees. The government will incur all the facilitator fees and the startup will incur only the statutory fees. They will enjoy 80% reduction in cost for filing patents.
  • Easy Access to Funds : Fund of Rs 10,000 Crores is to be set up by government to provide funds to the startups as venture capital. Guarantee is being given by the Government to the lenders so as to encourage banks and other financial institutions for providing venture capital.
  • Tax Holiday for 3 years : Startups can be exempted from Income Tax provisions for 3 years provided they got a certification from Inter-Ministerial Board (IMB).
  • Apply for tenders : While making application for government tenders, the Startups are exempted from the “prior experience/turnover” criteria which is applicable to normal companies while applying for government tenders.
  • R & D facilities : Seven new Research Parks will be set up to provide facilities to startups in the R & D Sector.
  • No time consuming & Time saving compliances:Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 Labour and 3 Environmental laws which can result in saving of time and money.
  • Tax saving for investors : Capital gains to be invested by the Startups in the Venture funds setup by government will be eligible to get exemption from capital gains. More investors can be attracted by the Startups
  • Choose your investor : The startups will have an option to choose between the VCs, giving them liberty to choose their investors.
  • Easy Exit : A startup can close its business within 90 days from the date of application of winding up, in case of exit.
  • Meet other entrepreneurs : Startup fests are proposed to be arranged by the Government annually both nationally and internationally to enable the various stakeholders of a startup to meet to enhance the opportunity to meet and collaborate on the innovation.

Benefits/exemptions To Start-ups Under Companies Act,2013

By Notification No GSR.583(E), dated June 13,2017 an explanation has been inserted in Clause 40 of Section 2 of the Companies Act 2013 which provides the definition of a “Startup” or “ Start-up company.”

“For the purposes of this Act, the term 'start-up' or “start-up company” means a private company incorporated under the Companies Act, 2013 (18 of 2013) or the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Department of lndustrial Policy and Promotion, Ministry of Commerce and Industry”.

  • Deposits : As per Rule 2 of the Companies (Acceptance of Deposit) Rules, 2014, an amount of twenty five lakh rupees or more received by a start-up company through convertible note i.e convertible into equity shares or repayable within a period not exceeding 10[ten years] from the date of issue in a single tranche from a person has been excluded from the definition of deposits.
    Also, the provisions of clauses (a) to (e) of Section 73 of the Companies Act 2013 i.e Prohibition on Acceptance of Deposits from public shall not apply to a start-up company for five (5) years from the date of its incorporation.
    A Private company which is a start-up is not required to comply with the maximum limit requirement in respect of deposits to be accepted from members, for a period of five years from the date of its incorporation.
  • ESOPs : Start-ups are allowed to issue Employee Stock Options to an employee who is a promoter or a person belonging to the promoter group; or a director who either himself or through his relative or through anybody corporate, directly or indirectly, holds more than 10 % percent of the outstanding equity shares of the company up to 10 years from the date of its incorporation or registration.
  • Sweat Equity : A startup company can issue sweat equity shares not exceeding 50% percent of its paid-up capital up to ten years from the date of its incorporation or registration.
  • Annual Return : The annual return of a start-up company can be signed by the company secretary, if any or where there is no company secretary, by the director of the Company.
  • Board Meeting : Holding at least one Board Meeting in each half of a calendar year with the gap of at least Ninety (90) days between the two meetings will suffice for complying Section 173 (5) of the Act.

Role Of Compliance Calendar Llp In Startup India Recognition (Dpiit)

Role Of Compliance Calendar Llp In Startup India Recognition (Dpiit)

Frequently Asked Questions

Following are the entities eligible to get Startup Registration

  • Private Limited Company,
  • Limited Liability Partnership, and
  • Registered Partnership Firm

Startups recognized by DPIIT are eligible for the following benefits:

  • Intellectual Property Rights (IPR) benefits
  • Relaxation in public procurement norms
  • Self-certification under Labour & Environmental Laws
  • Fund of Funds for Startups
  • Faster exit for Startups

The Companies (Share Capital and Debentures) Amendment Rules 2020 dated 5th June, 2020. With this amendment a Startup Company may issue sweat equity shares not exceeding 50% of its paid-up share capital up to 10 (ten) years from the date of its incorporation (Earlier the time period was up to 5(five) years from the date of incorporation.

Following are the Tax Incentives:

  • Income Tax Exemption on profits under Section 80-IAC of Income Tax Act,1961
  • Tax Exemptions on Investments above Fair Market Value
  • Exemption from Tax on Long-Term Capital Gain under Section 54 EE of the Income Tax Act, 1961
  • Exemption from tax on capital gains arising out of sale of residential house under Section 54GB of the Income Tax Act,1961
  • Carry forward off losses under Section 79 of the Income Tax Act,1961
  • Angel tax Exemption under Section 56 (2)(viib) of the Income Tax Act,1961

Startups following under the “White Category” would be able to self-certify compliance in respect of 3 Environment Acts.

  • The Water (Prevention and Control of Pollution) Act,1974;
  • The Water (Prevention and Control of Pollution) Cess Amendment Act,2003
  • The Water (Prevention and Control of Pollution) Act, 1981;

Guidelines has been issued by Ministry of Labour and Employment to the State Governments whereby Startups shall be allowed to self-certify compliance in respect of Labour Laws. These shall be effective after concurrence of States/Union Territories. The Acts are:

  • The Payment of Gratuity Act, 1872
  • The Contract Labour (Regulation and Abolition) Act, 1970
  • The Employees Provident Funds and Miscellaneous Provisions Act, 1952
  • The Employees State Insurance Act, 1948
  • The Building and Other Constructions Works (Regulation of Employment & Conditions of Service) Act, 1996
  • The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1996

Yes, we do help in the Startup India Registration across India. You can talk to our Startup Business Advisor who will be taking care of all your requirements with the Startup India Recognition under DPIIT Regulation. You can also mail us at or connect at +91 – 9988424211.