Startup India registration is the popular name for recognition by the Department for Promotion of Industry and Internal Trade (DPIIT). The recognition is free, is applied for online and unlocks a set of benefits on compliance, intellectual property fees, government tenders and tax. This guide explains who qualifies and what you actually get.
Who is eligible?
- The entity must be a private limited company, a limited liability partnership (LLP) or a registered partnership firm. Sole proprietorships are not eligible.
- It must be within the age limit counted from incorporation, which is 10 years for most startups and longer for deep-tech startups.
- Turnover in any year since incorporation must stay below the prescribed limit.
- It must work on an innovative product, process or service, or on a scalable business model with a high potential to create jobs or wealth.
- It must not have been formed by splitting up or reconstructing an existing business.
The age and turnover limits were revised in 2026, so confirm the current figures on the Startup India portal before you apply.
Benefits of DPIIT recognition
- Compliance relief: self-certification under selected labour and environment laws for the first five years.
- IP savings: a rebate of 80% on patent filing fees, faster patent examination and a 50% rebate on trademark fees compared with the standard rate.
- Public procurement: relaxation of prior experience and turnover conditions on government tenders and exemption from earnest money deposit in many cases.
- Funding support: access to the Fund of Funds for Startups through SEBI-registered venture funds and to seed support through incubators.
- Easier exit: a fast-track process for winding up a startup.
- Angel tax: the angel tax on share premium has been abolished for all investors from FY 2025-26, so recognition is no longer needed for that purpose.
Recognition is not the same as the income tax exemption
Section 80-IAC allows an eligible startup to claim a 100% deduction of its profits for any three consecutive years out of its first ten. This is a separate certificate from the Inter-Ministerial Board, applied for after DPIIT recognition, and it has its own conditions, including the period in which the company or LLP was incorporated. Recognition alone does not give you the tax holiday, and a startup with no profits gets little from it in the early years.
How to apply
- Incorporate the entity as a private limited company, LLP or registered partnership.
- Write a short description of what is innovative about your product, process or model.
- Apply online on the government startup portal with the incorporation certificate, PAN, director details and a link to your website or pitch.
- Track the application and answer any query from DPIIT.
- Download the recognition certificate, which is usually issued within a few days to a couple of weeks.
There is no government fee for recognition.
Common mistakes
- Describing an ordinary trading or service business without any innovation or scalability.
- Applying as a sole proprietorship, which is not eligible.
- Assuming recognition automatically gives the 80-IAC tax exemption.
- Letting the recognition lapse after the age or turnover limit is crossed and still claiming benefits.
Need help?
SS Auditors prepares the application and the innovation description for startups across Bangalore. See Startup India registration, private limited company registration or contact us.
Last reviewed October 2026. This article is general information, not advice for your specific case. Eligibility limits and benefits are revised by notification, so confirm on the Startup India portal before applying.