What is Startup India Registration?

Startup India Registration is a government initiative launched by the Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade (DPIIT) on January 16, 2016. The Startup India scheme aims to build a strong ecosystem for nurturing innovation and startups in India by providing recognition, funding support, tax exemptions, and regulatory relaxations to eligible startups.

Startup India Registration provides a DPIIT Recognition Certificate (previously called DIPP Certificate) that unlocks access to government benefits including 80IAC Tax Exemption, self-certification under labor and environment laws, fast-tracked patent and trademark registration with 80% fee rebate, access to government tenders without prior experience or turnover requirements, and eligibility for Fund of Funds for Startups (FFS) corpus of Rs. 10,000 Crore managed by SIDBI.

To qualify for Startup India Registration, a business must be incorporated as a Private Limited Company, LimitedLiabilityPartnership(LLP),orPartnershipFirm,registeredinIndiaforlessthan10yearsfromthedateof incorporation, with annual turnover not exceeding Rs. 100 Crore in any financial year, and working towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.

Eligibility Criteria for Startup India Registration

•EntityType—MustbeincorporatedasaPrivateLimitedCompany,LimitedLiabilityPartnership(LLP),or Partnership Firm registered in India. Sole proprietorships, One Person Companies (OPCs), and Section 8 companies (NGOs) are NOT eligible.

•Age of Incorporation — The startup must be incorporated for less than 10 years from the date of incorporationorregistration.Thismeansacompanyincorporatedin2015canapplyuntil2025only.

•AnnualTurnover—TheannualturnovershouldnotexceedRs.100Croreinanyofthepreviousfinancial years. Turnover is calculated based on audited financial statements or Income Tax Returns.

•InnovationFocus—Thestartupmustbeworkingtowardsinnovation,development,orimprovementof products, processes, or services. It should have a scalable business model with high potential for employment generation or wealth creation.

•Not Formed by Splitting or Reconstruction — The startup should be an original entity and not formed by splittinguporreconstructionofanexistingbusiness.Ifformedfromapreviousbusiness,itwillnotqualify.

•NoPriorDPIITRecognition—TheentityshouldnothavebeenpreviouslyrecognizedundertheStartup India scheme. Once de-recognized or rejected, re-application may not be allowed.

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