Startup India is the umbrella programme that gives DPIIT-recognised startups tax holidays, easier compliance, IPR fast-tracking and access to the ₹10,000-crore Fund of Funds plus seed funding. If you run an innovative company less than 10 years old with under ₹100 crore turnover, recognition is free and worth getting.
Key facts
| Recognition | Free DPIIT recognition via startupindia.gov.in |
| Eligible entity | Pvt Ltd / LLP / registered partnership, under 10 years old, turnover under ₹100 crore, working on innovation |
| Tax benefit | 3 consecutive years of income-tax holiday (Section 80-IAC), from eligible startups |
| Angel tax | Exemption available (Section 56) for recognised startups |
| Funding | Startup India Seed Fund (up to ₹50 lakh via incubators); Fund of Funds via SIDBI-backed VCs |
| Other | Self-certification for labour/environment laws, 80% patent fee rebate, easier public procurement |
What DPIIT recognition unlocks
- Tax holiday: apply to the Inter-Ministerial Board for 3-year 80-IAC exemption
- Seed money: the Seed Fund Scheme gives up to ₹20 lakh grant (validation) and up to ₹50 lakh convertible/debt via approved incubators
- IPR support: fast-tracked patents with 80% fee rebate and free facilitators
- Compliance: self-certify under labour laws; no inspections for the early years
- Market access: exemption from prior-experience conditions in government tenders
- Winding up: fast-track exit within 90 days if things fail
How to get recognised
- Incorporate as a Private Limited, LLP or registered partnership
- Create a profile on startupindia.gov.in and apply for DPIIT recognition
- Describe the innovation/problem you solve; attach incorporation certificate and a brief/deck
- Recognition certificate is typically issued within days if the innovation criterion is clear
- Apply separately afterwards for 80-IAC tax exemption and seed funding through the portal
Recognition is free — no consultant is required.
Frequently asked questions
Does every recognised startup get the tax holiday?
No — 80-IAC needs a separate Inter-Ministerial Board approval; a minority of recognised startups clear it. Recognition itself still gives the other benefits.
Can a sole proprietorship apply?
No — only Pvt Ltd companies, LLPs and registered partnerships qualify. Convert first if needed.
Is funding guaranteed after recognition?
No — the Seed Fund and Fund of Funds flow through incubators and VCs who select on merit. Recognition is the ticket, not the prize.
Related schemes
Disclaimer: PMYojanaUpdates.com is an independent information portal, not affiliated with any government department. Always verify details on the official site startupindia.gov.in before applying.