Startup Subsidy in Karnataka | Startup India

Updated on February 23, 2026 07:10:12 AM

The Startup Subsidy in Karnataka is implemented to provide financial assistance and incentives to the startups to promote innovation, encourage entrepreneurship, boost economic development and create job opportunities. The Startup India provides several programs of Startup Subsidy in Karnataka to support startups through financial assistance and incentives for business growth. The Startup Subsidy in Karnataka is important to promote new and independent startups to establish within the state for economic development. Read this article to know about the Startup Subsidy in Karnataka along with its benefits, programs, subsidy amount and more to apply for the suitable Startup Subsidy in Karnataka through our professional services.

What is Startup Subsidy?

The Startup India initiative was established by the Government of India to provide Startup Subsidy in Karnataka schemes for development of individual states and union territories throughout the nation. The Startup Subsidy in Karnataka encourages entrepreneurship to promote innovative ideas and startups and creates job opportunities for the domiciles of the state.

The Startup India instituted a number of programs to provide Startup Subsidy in Karnataka to the businesses as financial aid and incentives. The Startup Subsidy in Karnataka eases the process for establishment of new startups in the state to improve the entrepreneurial ecosystem and promote sustainable development of the state.

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Benefits of Startup Subsidy in Karnataka

Some of the benefits of Startup Subsidy in Karnataka that the startups can redeem are listed below.

  • Job Creation: The Startup Subsidy in Karnataka attracts businesses in the state which helps in the creation of job opportunities for locals.
  • Financial Assistance: The Startup Subsidy in Karnataka provides financial support to businesses and assists them with initial costs for research and development, product development, marketing, and operations.
  • Promote Innovation: The Startup Subsidy in Karnataka promotes innovative ideas of startups to overcome local challenges and sustain the natural and cultural resources of the state.
  • Infrastructure Development: The Startup Subsidy in Karnataka attracts businesses in the state which helps in the infrastructural development such as co-working spaces, incubation centers, and technological hubs.
Benefits of Startup Subsidy
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What are available Startup Subsidy in Karnataka?

The Startup Subsidy in Karnataka provides maximum subsidy rates and amount to entrepreneurs to ensure prevention of exploitation or unfairness of the intermediary. The Startup Subsidy in Karnataka is categorized under 2 programs which are listed below:

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Features of Startup Subsidy in Karnataka

Listed below are some of the features of the Startup Subsidy in Karnataka for the entrepreneurs in various sectors.

  1. Startups incubated in Government of Karnataka (GoK) supported incubators and CIFs located outside Bengaluru Urban District with an annual turnover of up to Rs 1 Crore are eligible for 100% reimbursement of annual State Goods and Services Tax (SGST) for the first three years.
  2. Startups located outside Bengaluru Urban District are eligible for 50% reimbursement of quality certification fees, up to a maximum of Rs 6 lakhs for a maximum of three industry standard quality certifications.
  3. A dedicated seed fund will be established to enable scaling up of startups in emerging technology hubs like Mysuru, Hubballi, and Mangalore.
  4. Funding of up to Rs 15 crore will be provided to set up Rural Innovation Centres at government colleges outside Bengaluru.
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Additional Information on Startup Subsidy in Karnataka

Listed below are some of the additional information about Startup Subsidy in Karnataka for the entrepreneurs in various sectors.

  1. The State Government would be providing financial support equivalent to Rs 300 crore in the form of grant/equity through its various funds to startups; micro and small enterprises in IT,BT, and other manufacturing sectors in the next four years.
  2. Karsemven Fund –
    • Fund Size: Rs 100 crores.
    • Sector: Semiconductor, Electronics System Design & Manufacturing (ESDM), Embedded Systems.
  3. Kitven Fund-3 (Biotech) –
    • Fund Size: Rs 50 crore.
    • Sector: Bio Technology, Life Sciences and other allied fields.
  4. Startup Fund of Funds –
    • Fund Size: Rs 200 crore.
    • Sector: Multi sector.
  5. Idea2poc Fund –
    • Fund Size: up to Rs 50 lakh.
    • Sector: All technology based sectors.
  6. Grand Challenges Funds –
    • Fund Size: Rs 15 crore.
    • Sector: All sectors.
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Conclusion

The Startup Subsidy in Karnataka implemented by Startup India has a prominent role in promoting innovation, encouraging entrepreneurship and boosting economic growth in the state. The Startup Subsidy in Karnataka offers financial assistance and incentives to entrepreneurs to aid in infrastructural development and create a conducive environment for startups, particularly in technology, agriculture and manufacturing sectors. The Startup Subsidy in Karnataka has the objectives to foster sustainable growth by generating job opportunities in the state for the locals in various sectors.

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Frequently Asked Questions

What is the Startup India Registration & Startup India Subsidy in Karnataka?

For Startup India Registration in Karnataka , startups must be a Private Limited Company, LLP, or Partnership Firm, less than 10 years old, with turnover under ₹100 crore, and have an innovative/scalable business model.

For Startup India Subsidy in Karnataka, eligible startups must be headquartered in Karnataka and operate in state-approved sectors. Benefits may include lease rental, utility reimbursements, marketing grants, interest subvention, and sustenance allowances.

What are the benefits of the Startup Subsidy in Karnataka?

The Startup Subsidy in Karnataka offers several benefits for startups including financial assistance for initial costs and cover expenses of research and development, product development, and operations.

What are available Startup Subsidy in Karnataka?

The Startup Subsidy in Karnataka include 2 programs which are:

  • Reimbursement (Patent Filing)
  • Marketing Cost Reimbursement
Who is eligible for the Startup Subsidy in Karnataka?

For Startup Subsidy in Karnataka, any startups registered under the Startup India scheme are eligible and there are also special incentives for startups owned by SC/ST entrepreneurs and women.

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