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Startup India

DPIIT recognition for eligible startups — 3-year tax exemption, 80% patent rebate, Angel Tax exemption, and government procurement priority.

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Overview

Startup India Registration is a government initiative launched on January 16, 2016, administered by the Department for Promotion of Industry and Internal Trade (DPIIT). It provides formal recognition, financial incentives, and regulatory simplification to eligible early-stage businesses. A startup is defined as an entity incorporated in India less than 10 years old, with annual turnover not exceeding Rs.100 crore, engaged in innovation, development, or improvement of products, processes, or services with a scalable business model.

DPIIT recognition is the gateway to privileges that dramatically reduce the cost and complexity of building a startup — including a 3-year income tax exemption under Section 80-IAC, 80% rebate on patent filing fees, Angel Tax exemption, priority in government procurement, and access to the Rs.10,000 crore Fund of Funds through SIDBI. Eligible structures include Private Limited Companies, LLPs, and Registered Partnership Firms. Sole Proprietorships and Public Limited Companies are NOT eligible.

MFiling manages the complete DPIIT recognition application — from incorporation to certificate — ensuring all eligibility criteria are met and documentation is complete. Government fee: Free. MFiling professional charges: from Rs.2,999. Processing time: 2–5 working days.

Key Benefits

3-Year Income Tax Exemption (80-IAC)
Tax exemption on profits for any 3 years out of first 10 years — separate DPIIT application required.
80% Rebate on Patent Filing Fees
Massive saving for IP-intensive startups — 50% rebate on trademark fees as well.
Angel Tax Exemption (Sec 56(2)(viib))
Investments above Fair Market Value exempt from being taxed as income of the startup.
Self-Certification Under 9 Labour Laws
Reduced compliance burden — self-certify under labour and environmental laws.
Priority in Government Procurement
Startups exempt from prior turnover and experience criteria in government tenders.
Fast-Track 90-Day Winding Up
IBC-based mechanism for quick dissolution, applicable to eligible startups.
Fund of Funds Access (Rs.10,000 crore)
Access to SIDBI-managed Fund of Funds for equity investment in eligible startups.

Documents Required

Certificate of Incorporation / Registration
PAN Card of Business Entity
Proof of Concept (Pitch Deck / Product Demo / Website URL)
Brief Description of Innovation and Scalability
Details of All Founders / Directors / Partners with Identity Proof
Funding Details — Term Sheet or Investment Agreement (if applicable)
Trademark or Patent Filing Details (if any IP filed)
Authorization Letter from Founders (if filing through representative)

How it Works

Incorporate the Business Entity (Pre-requisite)

Private Limited Company, LLP, or Partnership Firm — must be less than 10 years old.

Create Account on startupindia.gov.in (Day 1)

Register using the business email address on the official Startup India portal.

Navigate to DPIIT Recognition (Day 1)

Select "Register" → "DPIIT Recognition" in the portal.

Fill Application Form (Day 1)

Entity details, incorporation date, turnover information, and nature of business.

Upload Proof of Concept (Day 1)

Pitch deck, product description, or demo video link demonstrating innovation.

Self-Certify Eligibility (Day 1)

Certify that entity meets all DPIIT eligibility conditions.

Submit Application (2–5 days)

DPIIT processes applications within 2–5 working days.

Receive DPIIT Recognition Certificate (Day 3–7)

Download DPIIT Recognition Number and certificate from the portal.

Apply for 80-IAC Tax Exemption (optional) (30–90 days)

Separate application to DPIIT for Inter-Ministerial Board review — 30–90 days.

Frequently Asked Questions

What is the difference between DPIIT Recognition and 80-IAC Tax Exemption?
DPIIT Recognition gives access to startup benefits — IP rebates, self-certification under labour laws, Angel Tax exemption, and government procurement preference. Section 80-IAC income tax exemption for 3 years is a separate benefit requiring a fresh application to DPIIT, review by an Inter-Ministerial Board, and approval. Not all DPIIT-recognised startups automatically receive 80-IAC approval.
Can a startup incorporated more than 10 years ago get DPIIT recognition?
No. DPIIT recognition is only available to entities incorporated less than 10 years from the date of application. Entities crossing the 10-year threshold are no longer eligible, even if previously recognised. Already-recognised startups that cross 10 years retain their recognition until expiry.
Is GST registration mandatory for DPIIT recognition?
No. GST registration is not a prerequisite. The application requires incorporation certificate, PAN, and proof of concept. However, most operational startups should obtain GSTIN for business transactions, and it may be required for some government procurement tenders.
Service Price
₹2,999
Starting price · GST extra
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3-Year Income Tax Exemption (80-IAC)
Tax exemption on profits for any 3 years out of first 10 years — separate DPIIT application required.
80% Rebate on Patent Filing Fees
Massive saving for IP-intensive startups — 50% rebate on trademark fees as well.
Angel Tax Exemption (Sec 56(2)(viib))
Investments above Fair Market Value exempt from being taxed as income of the startup.
Self-Certification Under 9 Labour Laws
Reduced compliance burden — self-certify under labour and environmental laws.
Priority in Government Procurement
Startups exempt from prior turnover and experience criteria in government tenders.
Fast-Track 90-Day Winding Up
IBC-based mechanism for quick dissolution, applicable to eligible startups.
Fund of Funds Access (Rs.10,000 crore)
Access to SIDBI-managed Fund of Funds for equity investment in eligible startups.

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Service Price
₹2,999
Starting price · GST extra

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