Updated : May 28, 2024Process of Startup India Recognition by DPIIT
Overview :Startups are newly established businesses that bring in innovative products, services, and technologies in the markets. However, like all other nascent businesses, Startups usually struggle in attracting investments and institutional credit. Added to it is the burden of tax payment, getting clearances and approvals under various laws which drastically increases the cost of operation. So, to help startups overcome these challenges in its initial stages of establishment, the Government has introduced various benefits under the Startup India Scheme, which can be availed only after completing the process of Startup India Recognition by DPIIT.
The purpose of this blog is to explain the process of obtaining recognition as a Startup by the DPIIT. Being aware of the process is quite significant considering that a Startup cannot avail any benefit offered under the Startup India Scheme unless it is recognized by the DPIIT.
Startup India Scheme - Overview
The Startup India Scheme was introduced in the year 2016, with the primary aim of supporting the vision of young Indian entrepreneurs by assisting the growth of their startups. Under the scheme, the government offers a number of tax, funding and other benefits to eligible Startups recognized by the Department of Promotion of Industry and Internal Trade (DPIIT). The end goal here is to reduce the financial burden and challenges faced by startups, consequently resulting in wealth creation and employment generation in India’s Startup ecosystem.
Registered business entities like Private Limited Companies, One Person Companies, Limited Liability Partnerships, and Registered Partnership Firms are eligible to obtain DPIIT Recognition as Startups, provided they have not been incorporated for more than 10 years from the date of application. Their turnover must not have exceeded beyond Rs.100 crores in any financial year since incorporation. Such structures must be original, and not a result of reconstruction or splitting of any existing business. Moreover, the products, services, or processes that they deal with must also be innovative in some or the other way. The ultimate objective, as discussed earlier, should be financial growth, employment generation, and encouraging innovation in India.
Benefits of Startup India DPIIT Recognition
The various benefits that the Government offers under the Startup India Scheme have been listed in the table below:
| S.No. | Benefits of Startup India DPIIT Recognition |
|---|---|
| 1. | Exemption for any 3 FY out of the first 10 years after registration, u/s 80 IAC of the Income Tax Act |
| 2. | No tax inspection for 3 years from the date of registration |
| 3. | Capital Gains Tax exemption for angel investors u/s 56 of the Income Tax Act. |
| 4. | Rebates on application for registration of Intellectual properties like Trademarks & patents |
| 5. | Credit Guarantee Scheme |
| 6. | Quick winding up within 90 days |
Process of Startup India Recognition by DPIIT
The process of Startup Recognition is extremely simple and 100% online. Although, practically the process begins with filing the application for DPIIT Recognition of your Startup, but you have got to fulfill several prerequisites before reaching this step. Explained below, are all such prerequisites along with the complete process of Startup Recognition in India.
Step 1: Documentation
Documentation is the most important aspect of Startup Recognition. Without the submission of appropriate and accurate documents, your application will be deemed incomplete, and might suffer rejection at the hands of the concerned authorities. To avoid such a problem at the final stage of application, you must be careful from the very beginning. We strongly recommend that you must make a list of all the necessary documents and ensure its possession with you, before you proceed with the application process.
You need not worry as Startup recognition requires very few documents. These include:
- Incorporation / Registration Certificate of the business
- PAN of the business
- Letter of Authorization of the authorized representative
- Aadhar of the Authorised Representative
- A few extra documents reflecting the stage your Startup is in. If your startup is at the validation stage, then you can provide the pitch deck or the website link of your startup. However, for stages beyond validation, including early traction, and scaling, providing both pitch deck and website link is mandatory.
Step 2: Incorporate your business
Ensuring the possession of documents is not the only prerequisite. As already mentioned earlier, unincorporated businesses cannot get recognized as Startups. So, the second important prerequisite is the incorporation of your Startup. For this, you can seek our assistance through our quality and affordable services of Startup formation. We register all kinds of business, from Partnership Firms to LLPs, and from OPCs to Private Limited Companies. Once incorporated, you business becomes perfectly eligible for being recognized as a Startup.
Step 3: Register on the Startup India Portal
So, the first step of the process of application is registration of the applicant business on the Startup India website.
For this, you can go to the official website of Startup India, and click on the Register tab in the right hand corner. You will be redirected to another page where you will be asked to fill in your name (the name of the authoried representative), your mobile number and email address. To verify these details, an OTP will be sent to your mobile number and email address. Once you submit these OTPs, you will receive an email with your login credentials (Username & Password)
Step 4: Complete Profile Creation
Using the Login credentials, you will have to login into your account on the website. After logging in, you will have to create your complete profile by filling in details like the current stage of your startup, the details of directors / partners, the details of the authorized representative, business plan, details of funding, details of intellectual property and the proposed business activities of your Startup.
Step 5: Apply for DPIIT Recognition
After creating your complete profile, you can go to the “Recognition” tab in the menu, and apply for Startup Recognition by DPIIT. You can apply as a company, as an LLP, or a partnership firm. Fill out the application and submit the necessary documents including the incorporation certificate of the business and a detailed write up about the products, services, or technologies that the Startup deals in, and the manner in which they encourage novelty, innovation, employment, and wealth creation. After you have filled out the application and attached all the necessary documents, you can submit it online. No government fee is required for the same.
Step 6: Receive Startup Recognition Certificate
The Department examines the application and its documents for accuracy and authenticity. Once the application is verified and approved, the Department will recognize the business as a Startup, and will accordingly issue a Recognition Certificate. The process of Startup Registration or Recognition ends with the issue of this Certificate.
How Can Setindiabiz Help With DPIIT Recognition?
At Setindiabiz, we help you obtain DPIIT recognition, with our quick, easy and extremely affordable services. Our services cover the end-to-end process for obtaining the DPIIT recognition for your startup. It begins with Profile creation on the Startup India Portal, followed by filing of application and ending with the submission of the prescribed application form. We help you draft all the documents required to be uploaded with the form as well. We track the status of your application till your Startup receives the Certificate of Recognition. So, if you are seeking professional assistance for obtaining Startup Recognition by the DPIIT, contact us immediately!
