Startup India Recognition
Startup India is an Indian Government initiative that is intended to build a strong eco-system for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale employment opportunities. Through this initiative, the government aims to empower Startups to grow through innovation and design.
The objectives of the Startup India Movement are outlined below. The action plan envisages supporting the startups and more:
Eligibility Criteria
The startup must meet the following eligibility criteria to avail the DPIIT Certificate of Recognition:
Procedure to get DPIIT Certificate
The entity should follow the below-mentioned simple steps to get the DPIIT certificate of recognition.
Incorporation of the Business
As stated above, the entity must first incorporate the business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership (LLP).
Registering Business with the Startup India Scheme
The business needs to be registered with the Startup India Scheme to get the DPIIT certificate of recognition.
Apply for Start-up Recognition
The applicant unit need to access the Start-up India Recognition portal for Register with Start-up India to get the DPIIT Certificate of Recognition for Startups.
Provide the following details in the Start-up Recognition application :
Get the Startup Recognition Number
The DPIIT Certificate of Recognition for Startups will be issued after examination of the application and documents submitted.
Once the ministry approves the application and provides the unique startup recognition number, the startup can be registered with tax benefits.
Benefits for DPIIT Recognized Startups
The startups can avail the following benefits after obtaining the DPIIT Certificate of Recognition for Startups:
Self Certification
After obtaining the DPIIT Certificate of Recognition for Startups, the entity will be allowed to self-certify compliance under 3 Environmental Laws and 6 Labour Laws.
Start-Up Patent Application
The DPIIT recognized startups are required to pay only 80% of the fees on Patents, trademark, copyrights and design, and the fast-tracking of a patent application will be available for startups.
Easier Public Procurement Norms
Easy winding up of Company
According to the Insolvency and Bankruptcy Code, 2016, the company can be wound up within 90 days of applying for insolvency
Funds of Funds
The startups will be eligible for Rs.10000 crore funds of funds from the Alternative Investment Funds.
Credit Guarantee fund
The startups can avail Rs.2000 crore Credit Guarantee fund through the National Credit Guarantee Trust Company or SIDBI over 4 years
Tax Exemptions
Know more about the Startup Tax Exemption under Startup India Initiative.
1. Who is eligible for Startup India?
23 March 2023
To register with Startup India, an entity must meet specific criteria.
2. Is Startup India a scheme?
23 March 2023
Startup India is a vital government scheme launched on 16th January 2016 to provide financial assistance and mentorship to entrepreneurs. Additionally, it provides entrepreneurs with a platform for networking with industry experts, investors, and other stakeholders. The scheme also encourages research, development, and technology transfer in the country. This scheme helps create more jobs in the country and boost economic growth.
3. Does the government give funds to startups?
23 March 2023
The easy availability of financing is a critical issue for entrepreneurs looking to expand their Startups. Due to a lack of funding, many business concepts stay on the ground. To address this issue, the Indian government has established a few Schemes through which the government provides financial aid to entrepreneurs. Startups can use these funds for research and development, marketing, and other activities to help them grow their business.
4. Can a One Person Company get Startup India Recognition?
17 February 2022
As One Person Company is a form of a company it can be recognized as a Startup.
5. How many days are required to obtain the Startup India Recognition Certificate?
17 February 2022
It requires around 7-10 working days , the government officers check all the information and the documents that are provided.
6. For how many years an entity get the recognition of startup?
17 February 2022
For the period of 10 years from the date of incorporation up to the turnover the increases the limit of Rs.100 crore in any financial year.
7. How to connect with other startups and investors after getting the Startup recognition?
17 February 2022
Once the registration is done you can connect to the other startups, the investors or the incubators on the startup India portal.
8. Can the tax benefits availed as soon as the certificate is obtained?
17 February 2022
After registering under this scheme the entity will be eligible to avail certain tax benefits, but one has to apply seperately on the portal to avail it.
9. What is Startup India recognition?
20 January 2023
The companies are eligible to get recognized as DPIIT Department of Industrial policy and Promotion which gives access to tax benefits, easier compliances, IPR fast tracking and more.
10. Who can get Startup India Registration?
20 January 2023
Private Limited Companies, Limited Liability Partnerships, Registered Partnership firms can obtain Startup recognition certificate.
11. What is DPIIT?
06 February 2023
Department for Promotion of Industry and Internal Trade grants the startup recognition certificate based on certain conditions.