Lesson content
Scroll through numbered sections or jump via the outline.
What you'll take away
- Apply soon after incorporation while objects clause and website match your 'innovation' story.
- Keep pitch and website consistent — mismatches cause rejection.
- Update DPIIT profile when you pivot business model.
- Coordinate with your CA before first angel round for 56(2)(viib) eligibility paperwork.
What DPIIT recognition is
Department for Promotion of Industry and Internal Trade (DPIIT) recognition labels your entity a 'startup' under Startup India policy.
It is not the same as incorporating a company — you must already be a Pvt Ltd, LLP, or partnership registered in India, usually less than 10 years old with turnover under prescribed limits.
Recognition unlocks access to self-certification under labour/environment laws (where applicable), Fund of Funds visibility, and tax benefits if you separately qualify.
Eligibility snapshot
Apply via startupindia.gov.in with incorporation certificate, pitch deck optional, and brief about innovation.
- Entity incorporated in India, < 10 years from incorporation.
- Turnover below ₹100 crore in any previous financial year (check latest notification).
- Working towards innovation / improvement of products or processes.
- Not formed by splitting or restructuring an existing business.
Tax benefits founders ask about
Section 80-IAC: 100% deduction on profits for 3 consecutive years out of 10 — requires inter-ministerial board approval; not automatic with DPIIT certificate.
Section 56(2)(viib) angel tax relief: DPIIT + compliance conditions can exempt premium on share issue from angel tax — critical for early priced rounds.
These require separate applications and clean cap table documentation — plan 2–3 months before you need them, not the week before term sheet signing.
Non-tax perks that still help
- Faster patent fee rebates and IP support schemes.
- Access to Startup India hub resources and state-level policies.
- Easier narrative for government tenders and corporate innovation programs.
- Self-certification under select labour laws for recognised startups (verify current list).
Practical application tips
Apply soon after incorporation while objects clause and website match your 'innovation' story.
Keep pitch and website consistent — mismatches cause rejection.
Update DPIIT profile when you pivot business model.
Coordinate with your CA before first angel round for 56(2)(viib) eligibility paperwork.