Startup India Scheme – DPIIT Recognition & 3-Year Tax Exemption
Startup India DPIIT Recognition & Section 80-IAC Exemption
Central government initiative that provides official recognition to startups, offering 100% income tax holidays, fast-track intellectual property processing, self-certification under labor laws, and priority government procurement.
Who Can Apply?
Eligible Entity Type
Must be incorporated as a Private Limited Company, Limited Liability Partnership (LLP), or Registered Partnership Firm.
Entity Age
Must not exceed 10 years from the date of incorporation or registration.
Turnover Limit
Annual turnover must not exceed ₹100 crore in any of the financial years since incorporation.
Innovative Business Model
The business must work towards innovation, development, or improvement of products, processes, or services with scalable business models.
Original Entity
The startup must not be formed by splitting up or reconstructing an existing business.
Key Features
Section 80-IAC Tax Holiday
Eligible startups receive a complete income tax exemption for any 3 consecutive financial years in their first 10 years.
Labor & Environmental Self-Certification
Startups can self-certify compliance for 9 labor laws and 3 environmental laws to avoid inspection harassment.
Easy Winding Up / Exit
Under the Insolvency and Bankruptcy Code, recognized startups can wind up operations within 90 days instead of years.
Public Procurement Preferences
Exemptions from Earnest Money Deposit (EMD) and prior turnover/experience criteria in government tenders.
80% Patent & Trademark Rebate
Startups receive an 80% rebate in patent filing fees and 50% rebate in trademark filings with fast-track exam paths.
Funding Pool Access
Eligibility to participate in the Fund of Funds and credit guarantee facilities specifically reserved for startups.
Scheme Benefits
Application Process
Incorporate Your Business
Register your entity as a Private Limited Company, LLP, or Partnership Firm in India.
Apply for DPIIT Recognition
Submit business details, incorporation records, and a brief description of innovation on the Startup India portal.
Secure DPIIT Recognition Certificate
Following portal verification, the government issues a unique Startup Recognition Certificate.
Apply for Section 80-IAC Exemption
Prepare financial projection details, pitching decks, and submit the tax exemption request to the Inter-Ministerial Board.
Documents Required
Frequently Asked Questions
What is Startup India DPIIT Recognition?
It is an official certification given by the Department for Promotion of Industry and Internal Trade (DPIIT) to startups, unlocking tax breaks, compliance relaxations, and financial support eligibility.
Who is eligible to apply for Section 80-IAC tax exemption?
Only recognized Private Limited Companies and LLPs incorporated on or after April 1, 2016 are eligible to apply to the Inter-Ministerial Board for Section 80-IAC tax exemption.
Is a registered partnership eligible for the tax holiday?
While registered partnerships can get DPIIT recognition, they are not eligible for the Section 80-IAC income tax holiday. Only Pvt Ltd and LLPs qualify for tax exemptions.
How long is the DPIIT certificate valid?
The recognition certificate is valid for up to 10 years from incorporation, or until the entity achieves an annual turnover exceeding ₹100 crore in any financial year.
Does Satya Support assist in tax exemption queries?
Yes. We prepare bank-compliant pitches, file your DPIIT recognition online, check NIC codes, and handle the entire Section 80-IAC tax exemption submission to the Inter-Ministerial Board.
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