Startup India Registration and DPIIT Recognition Process

The Government of India launched the ambitious Startup India initiative to promote innovation, support early-stage businesses, and foster a strong entrepreneurial ecosystem across the country.

The program offers several benefits, including tax exemptions, simplified regulatory processes, easier access to funding, and government support for up to 10 years from the date of incorporation. It also aims to create a robust industrial framework and instill a culture of entrepreneurship among the youth.

To avail these benefits, businesses must first obtain DPIIT recognition by registering on the official Startup India portal.

This article will guide you through the Startup India registration process, eligibility criteria, required documents, and key benefits of being a DPIIT-recognized startup.

Startup India Certificate [Sample]

1- The originality of the entity:- To meet the criteria for DPIIT registration, the startups must have been separate entities, meaning they cannot have been created by splitting an already existing company.

2- Type of business structure:- If a company is not registered under the following business structure as per the companies act 2013. Such entities will need help to avail the benefits of the startup India program.

• Pvt Ltd Company
• Partnership Firm
• One person Company
• Limited Liability Partnership

3- Annual Turnover of the company:- The company's annual Turnover should be at most 100 crore rupees for any calendar year since its incorporation.

4- Existence period of the company:- The existence period of the entity should be more than 10 years from the day of incorporation.

5- Innovation & the scalable entity:- The most critical aspect of a business is Scalability and innovation. These aspects are essential for any business activity. Before recognizing a new entity under the startup India program, DPIIT takes it under consideration because startups need to have a clear idea for DPIIT registration on the Startup India portal.

1 - Incorporate Your Business

Before applying, the applicant must first check their eligibility for Startup India registration. To qualify, the business must be registered under one of the following structures as per the Companies Act, 2013:

• Private Limited Company (Pvt. Ltd.)
• Partnership Firm (registered)
• One Person Company (OPC)
• Limited Liability Partnership (LLP)

Only entities registered under the above categories are eligible for Startup India recognition.

2 - Create a Profile on the Startup India Portal

Next, the user must create a profile on the Startup India portal by filling out a simple online form. This includes entering an email address and completing an OTP verification to validate the identity.

After successful profile creation, startups get access to several exclusive benefits, such as:

• Pro-bono legal, tax, and IP services
• Startup India website challenges
• Central and state government schemes
• Startup-friendly state policies
• Learning and development resources
• Incubator and mentorship opportunities

3 - Apply for DPIIT Recognition

Once the profile is set up, the startup can apply for DPIIT recognition through the dashboard. The application requires basic company details, such as:

• Business name and registration number
• Nature of the product/service
• Founders' and directors' details
• Proof of concept (if available)

After submission, DPIIT will review the application. Once approved, the startup will receive official recognition and can begin availing all benefits under the Startup India scheme.

• Self-Certification Compliance: Startups can self-certify their compliance under 6 labour laws and 3 environmental laws, significantly reducing the regulatory burden.
• Simplified Exit Process: Startups benefit from a fast-track and easy winding-up process under insolvency and bankruptcy code within 90 days.
• Exemption from Labour and Environmental Inspections: Liberty from routine inspections under select labour and environmental laws for a period of 3 to 5 years.
• Tax Exemption under Section 56: DPIIT-recognized startups are exempted from the "angel tax" under Section 56(2)(viib) of the Income Tax Act.
• 3-Year Tax Holiday under Section 80 IAC: Eligible startups can claim a 100% tax rebate on profit for three consecutive years within their first ten years of incorporation.
• Faster IPR and Patent Processing: Startups receive up to 80% rebate on patent filing fees and benefit from fast-tracked examination of patents and trademarks.
• Relaxed Public Procurement Norms: DPIIT-recognized startups are exempt from prior experience and turnover requirements in government tenders.
• EMD Exemption on e-Tender Portals: Startups with DPIIT certification are exempted from submitting Earnest Money Deposit (EMD) while participating in public procurement through GeM portal.

Registration for a new business in India is quick and painless when you use the right tools. Our three-step process makes registering your company as a startup in India easy under DPIIT guidelines.

This moment in India's history marks the beginning of a period of unparalleled prosperity for the country's budding entrepreneurs. The government plays a crucial role in making India a technology superpower.

The Indian government's Startup India program acts as an intermediary between startups and the kinds of possibilities they might not be able to access on their own. Therefore the new businesses need to register themselves with DPIIT to take advantage of govt schemes & guidance.