Startup India Scheme

  2. START UP INDIA – DIPP Recognition



Register on the Start Up India portal with basic information details such as phone number and email.

Create a user profile.


  • Networking: A chance to connect with investors, incubators, accelerators and mentors.
  • Free Access provided by entities: Cloud services, SaaS Software solutions, Legal services, Banking services, Business services.
  • Participation in various events to get recognition.
  • Information on Government Schemes and Policies.

2. START UP INDIA – DIPP Recognition

DIPP Recognition leads to various relaxations in Government compliance norms.


  • Pvt Ltd Company/LLP/Partnership firm;
  • Upto a period of ten years from the date of incorporation/ registration.
  • Turnover not exceeded one hundred crore rupees in a financial year.
  • Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
  • Not a business formed by re-structuring older business.


Submission of online application after registration in the Start Up Hub portal –

  • Incorporation/Registration Certificate
  • Director details
  • Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup) respectively
  • Patent and trademark details (Optional)
  • PAN Number


Income Tax Benefits:

The Startup incorporated after April 1, 2016, is eligible for getting 100% tax rebate on profit for a period of three years in a block of 10 years.

Exemption under Section 56(2)(VIIB) of Income Tax Act

  • Angel Tax Exempted – Investments into eligible startups by specified entities shall be exempt under Section 56(2)(VIIB) of Income Tax Act.
  • Consideration of shares received by eligible startups shall be exempt upto an aggregate limit of INR 25 Crore.

Access to venture capital funds:

  • A corpus fund of INR 10,000 Crores managed by SIDBI.
  • The fund is in the nature of Fund of Funds, which means that the government participates in the capital of SEBI registered Venture Funds, who invest twice the amount in startups.
  • The flow of funds is Government > SIDBI > Venture Capitals > Startups

Relaxation in Public Procurement Norms:

  • Register on GeM (Government e Marketplace) as sellers and sell products and services directly to Government entities;
  • Exemption from Prior Experience/Turnover/ Earnest Money Deposit;
  • Recognised Startups can also become preferred bidders on CPPP portals, which sees over 2,00,000 tenders every year.

Self-certification/declaration under Labour and Environmental Laws:

  • Startups shall be allowed to be self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
  • In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
  • In the case of environment laws, startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases

Help with Patent and other IPR applications:

  • Fast-tracking of Startup Patent Applications
  • Panel of facilitators to assist in filing of IP applications
  • Government to bear facilitation cost. Only statutory fees to be borne by the start up.
  • 80% rebate on filing of patent applications; 50% rebate for trademark applications.

Easy Winding Up Procedure:

Ministry of Corporate Aff­airs has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-à-vis 180 days for other companies. An insolvency professional shall be appointed for the Startup, who shall be in charge of the company for liquidating its assets and paying its creditors within 6 months of filing

The Indian Tax Advisors