What Is Startup India and DPIIT Recognition?
Startup India is the Government of India's flagship initiative launched to build a strong ecosystem for nurturing innovation and startups in India. DPIIT (Department for Promotion of Industry and Internal Trade) recognition is the official certification that unlocks a range of benefits for eligible startups.
Eligibility Criteria for Startup India Recognition
| Criteria | Requirement |
|---|---|
| Age of Company | Not more than 10 years from date of incorporation |
| Entity Type | Pvt Ltd, LLP, or Registered Partnership Firm |
| Annual Turnover | Not exceeded Rs.100 Crore in any financial year |
| Innovation | Working towards innovation, development, or improvement of products/services |
| Not a Restructure | Should not have been formed by splitting/reconstruction of existing business |
Benefits of DPIIT Recognition
Tax Benefits (Section 80-IAC)
- •3-year tax holiday in a block of 10 years from incorporation
- •Exemption from income tax on profits for eligible startups
- •Must apply to Inter-Ministerial Board for tax exemption
Intellectual Property Rights
- •Fast-track patent examination: Reduce timeline from 5-7 years to 1-2 years
- •80% rebate on patent filing fees
- •50% rebate on trademark filing fees
- •Facilitated through DPIIT panel of facilitators
Self-Certification Compliance
- •Self-certify compliance under 6 labour laws and 3 environmental laws
- •No inspection for first 3 years (labour laws)
- •Reduces compliance burden significantly
Funding Access
- •Startup India Seed Fund: Up to Rs.50 Lakh
- •Fund of Funds: Rs.10,000 Crore corpus through SIDBI
- •Credit Guarantee Scheme: Collateral-free loans up to Rs.5 Crore
- •Alternative Investment Funds: Tax exemption on investments
Other Benefits
- •Public procurement benefits (no prior experience/turnover required)
- •Government tender exemptions
- •Networking through Startup India Hub
- •Access to startup events and conclaves
Business Plan Requirements for DPIIT Registration
The business plan submitted during Startup India registration must clearly demonstrate:
1. Innovation Statement
- •What is innovative about your product/service?
- •How is it different from existing solutions?
- •What technology or process innovation is involved?
- •How does it improve upon the status quo?
2. Scalability Potential
- •How will the business scale beyond its initial market?
- •Technology-driven scalability
- •Market expansion roadmap
- •Team scaling plan
3. Employment Generation
- •Current employees
- •Planned hiring over next 3 years
- •Types of jobs created (skilled, semi-skilled)
- •Training programs for employees
4. Economic Value Creation
- •Revenue generation potential
- •Tax contribution
- •Industry impact
- •Supply chain development
Business Plan for Startup India Seed Fund
The Startup India Seed Fund Scheme (SISFS) provides up to Rs.50 Lakh to startups for proof of concept, prototype development, product trials, and market entry.
Seed Fund Business Plan Must Include:
| Section | Requirements |
|---|---|
| Executive Summary | Innovation, market opportunity, team |
| Problem-Solution | Clear articulation with evidence |
| Product/Service | Stage of development, MVP status |
| Market Analysis | TAM/SAM/SOM with India-specific data |
| Business Model | Revenue streams, pricing, unit economics |
| Traction | Any validation - users, revenue, LOIs |
| Financial Projections | 3-year projections with assumptions |
| Use of Funds | Detailed breakdown of seed fund usage |
| Team | Founder background, key hires planned |
| Milestones | What will be achieved with the funding |
Seed Fund Application Process
- Register on Startup India portal
- Get DPIIT recognition
- Apply through an approved incubator
- Submit detailed business plan
- Incubator evaluates and recommends
- Expert Advisory Committee reviews
- Funds disbursed through incubator
Step-by-Step: Startup India Registration Process
Step 1: Incorporate Your Company
- •Register as Pvt Ltd, LLP, or Partnership Firm
- •Get PAN and TAN for the entity
- •Open a current bank account
Step 2: Register on Startup India Portal
- •Visit startupindia.gov.in
- •Create an account
- •Fill in entity details
Step 3: Prepare Required Documents
- •Certificate of Incorporation
- •PAN of the entity
- •Business Plan / Innovation Brief
- •Authorization letter
- •Patent/trademark details (if any)
- •Recommendation letter from incubator (optional but helpful)
Step 4: Submit Application
- •Upload all documents
- •Submit business description and innovation statement
- •Application reviewed within 7-10 days
Step 5: Receive DPIIT Certificate
- •Digital certificate issued
- •Recognition number assigned
- •Benefits activated
Post-Recognition: Maximizing Benefits
Tax Exemption Application
After DPIIT recognition, apply separately for tax benefits:
- Apply to Inter-Ministerial Board (IMB)
- Submit: Innovation details, revenue projections, employment data
- IMB evaluates and certifies
- Tax exemption granted for 3 consecutive years
Accessing Fund of Funds
- Get DPIIT recognition
- Apply to SEBI-registered AIFs supported by Fund of Funds
- VCs invest from the Rs.10,000 Crore corpus
- Setup India can help with pitch deck preparation
Cost of Startup India Registration
| Service | DIY Cost | Setup India Price |
|---|---|---|
| Company Registration | Govt fees only | Starting Rs.1,499 |
| DPIIT Registration | Free | Included with registration |
| Business Plan (for Seed Fund) | Self-prepared | Rs.9,999 (Professional) |
| Pitch Deck (for Fund of Funds VCs) | Self-prepared | Rs.9,999 |
| Complete Package | Variable | Contact us for bundle pricing |
Conclusion
Startup India recognition unlocks significant benefits - from tax holidays to collateral-free loans to fast-track IP processing. The key to accessing these benefits is a well-prepared business plan that demonstrates innovation, scalability, and economic value creation.
Setup India helps startups navigate the entire process, from company registration to DPIIT recognition to seed fund application. Our CA-prepared business plans ensure your application meets every requirement.