What is DPIIT And How to Get Recognition Under It?

  • Setindiabiz Team
  • February 27, 2023
What is DPIIT And How to Get Recognition Under It?
The Department for Promotion of Industry and Internal Trade (DPIIT) is a government agency in India responsible for promoting industrial development, entrepreneurship, and innovation in the country. One of the key initiatives of DPIIT is the Startup India program, which aims to support and nurture startups in India through various schemes and incentives.
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DPIIT recognition for startups is a crucial aspect of this program, as it provides eligible startups with benefits such as tax exemptions, funding opportunities, and fast-track patent examination. In this article, we will explore the DPIIT recognition process, eligibility criteria, benefits, and how it can help startups to grow and succeed in India’s dynamic and competitive startup ecosystem.

What is DPIIT?

To understand what is DPIIT, you need to first know what does DPIIT stand for? DPIIT stands for the Department for Promotion of Industry and Internal Trade. It falls under the Union Ministry of Corporate Affairs and is responsible for formulating policies for the promotion of industrial development, foreign direct investment, and internal trade in India. DPIIT is under the Ministry of Commerce and Industry. It was created in January 2019 after the merger of the Department of Industrial Policy and Promotion (DIPP) and the Department of Commerce.

What is the purpose of DPIIT?

The primary purpose of DPIIT is to create a conducive environment for the growth and development of industries and businesses in India. The department is responsible for formulating and implementing policies that facilitate investment, innovation, and entrepreneurship. DPIIT works closely with various stakeholders such as businesses, industry associations, state governments, and other central government departments to achieve its objectives.
One of the ways in which DPIIT promotes the growth of businesses is by providing recognition to eligible entities under various schemes. DPIIT recognition is a coveted status that offers several benefits to businesses. To be eligible for DPIIT recognition, a business must meet specific criteria and follow a set of procedures.

How to get DPIIT Recognition?

DPIIT recognition for startups is a program initiated by the Department for Promotion of Industry and Internal Trade to provide recognition, benefits, and incentives to eligible startups, in order to promote their growth, development, and expansion in India. To receive DPIIT recognition for startups, eligible businesses must submit an online application that includes details about their business, team, product or service, and funding. The application is evaluated by a panel of experts, and successful applicants receive a certificate of recognition and access to various benefits and incentives. We have elaborated on each step of the process below.

Determine the eligiblity criteria

Before applying for DPIIT recognition, a business must determine its eligibility. DPIIT offers recognition under various schemes such as the Startup India Scheme, Industrial Entrepreneurship Memorandum (IEM), and the National Industrial Classification (NIC) code. Each scheme has specific eligibility criteria, and businesses must meet them to be considered for recognition.
For instance, to be eligible for recognition under the Startup India Scheme, a business must be incorporated as a private limited company, partnership firm, or limited liability partnership (LLP). It must be less than ten years old from the date on which it was incorporated and must have an annual turnover of less than INR 100 crores. Additionally, the business must be working towards developing new and innovative products, processes, or services driven by technology, with the primary objectives of wealth creation and employment generation. An additional condition applicable is that it should be an original structure and not a product of the splitting or reconstruction of an existing business.

Register and Create a Profile on DPIIT Portal

Once a business has determined its eligibility, it must be registered on the DPIIT portal (https://www.startupindia.gov.in/content/sih/en/startup-scheme.html). The DPIIT portal is an online platform that enables businesses to apply for recognition under various schemes. To register, a business must provide basic details such as its name, address, and contact information. The contact information would be verified using OTP. With this, your registration process will be completed and you will receive your login credentials on your registered e-mail ID.
Using these credentials, you can log in to the portal, and create your complete profile by entering details like the current stage of your startup, the details of directors/partners, the details of the authorised representative, business plan, details of funding, details of intellectual property and the proposed business activities. You must also upload supporting documents such as the Certificate of Incorporation, PAN card, and GST registration.

Apply for DPIIT Recognition

After registering and creating your complete profile on the DPIIT portal, a business can apply for recognition under the Startup India scheme. The application form will require the business to provide details such as its business model, financial projections, and the problem it intends to solve. The business must also provide information on its team, including the founders, directors, and key management personnel.

Await approval

Once the application is submitted, DPIIT will review it and communicate its decision of approval or rejection to the business. If the application is approved, the business will be granted recognition under the Startup India scheme. The recognition certificate is valid for a specified period and can be renewed before expiry.

What are the benefits of DPIIT?

DPIIT recognition offers several benefits to eligible startups, including access to various schemes and programs, such as tax exemptions, fast-track patent examination, and funding opportunities. It also provides startups with visibility, credibility, and networking opportunities with industry leaders, investors, and mentors. Additionally, DPIIT recognition can help startups to overcome bureaucratic hurdles, improve the ease of doing business, and promote a culture of innovation and entrepreneurship in India. We have explained some of the prominent benefits of DPIIT Recognition below.
1. Tax Benefits: Businesses recognized by DPIIT are eligible for various tax benefits. For example, startups recognized under the Startup India Scheme are exempt from paying income tax for the first three years. Additionally, they are eligible for a 100% deduction of profits for five consecutive years out of seven years from the date of incorporation.
2. Faster Access to Funding: DPIIT recognition can help businesses attract funding from investors and financial institutions. Investors are more likely to invest in recognized businesses as they are perceived to have a higher potential for growth and profitability.
3. Brand Recognition: DPIIT recognition can help build a startup’s brand in several ways. Firstly, receiving DPIIT recognition provides instant credibility and validates the startup’s potential for growth and innovation. This recognition can be used in the startup’s branding efforts, such as website, social media, and marketing materials, to showcase its achievements and differentiation. Secondly, DPIIT recognition can provide startups access to various networking opportunities, such as events, conferences, and mentorship programs, which can help them connect with industry leaders, investors, and potential customers.


In conclusion, DPIIT recognition for startups play a vital role in promoting entrepreneurship and innovation in India by providing startups with the resources and support they need to grow and succeed. By offering benefits such as tax exemptions, funding opportunities, and fast-track patent examination, DPIIT recognition helps to remove barriers to entry and foster a culture of innovation in India. Entrepreneurs looking to start or grow their businesses in India should explore the opportunities available through DPIIT recognition and the Startup India program.

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