Quality, not quantity

Startup India Recognition

Startup India is an initiative by the Indian Government aimed at creating a robust ecosystem to foster innovation and support startups in the country. The primary goal is to drive sustainable economic growth and generate significant employment opportunities by empowering startups to thrive through innovation and design.

The objectives of the Startup India Movement include:

  1. Enhanced Infrastructure: This encompasses the establishment of incubation centers to provide startups with essential resources and support.

  2. IPR Facilitation: Measures are in place to simplify the patent filing process, making it more accessible to startups.

  3. Improved Regulatory Environment: The initiative focuses on providing tax benefits, streamlining compliance procedures, simplifying company setup, and introducing efficient mechanisms.

  4. Increased Funding Opportunities: Efforts are made to expand funding options available to startups.

  5. Networking Database: A comprehensive networking database is created to connect entrepreneurs and stakeholders in the startup ecosystem.

Eligibility Criteria for DPIIT Certificate of Recognition:

To qualify for the DPIIT Certificate of Recognition, a startup must meet the following criteria:

  1. Period of Existence: The company's existence and operations should not exceed 10 years from its date of formation.

  2. Type of Entity: Recognition is available to Private Limited Companies, Limited Liability Partnerships (LLPs), or Registered Partnership Firms.

  3. Annual Turnover: The firm should have achieved an annual turnover of at least Rs. 100 crore for any fiscal year since its inception.

  4. Original Entity: The company must not have been formed by splitting or recreating an already existing entity.

  5. Innovative and Scalable: The entity should be working on developing or enhancing a product, process, or service. It should also possess a scalable business model with the potential to create wealth and employment.

Procedure to Obtain DPIIT Certificate:

Here are the steps to obtain the DPIIT Certificate of Recognition:

  1. Business Incorporation: First, incorporate the business as a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP).

  2. Register with Startup India Scheme: Register the business with the Startup India Scheme to become eligible for DPIIT recognition.

  3. Apply for Startup Recognition: Access the Startup India Recognition portal and apply for recognition. Provide essential details, including entity information, address, authorized representative, director/partner details, intellectual property rights, funding details, and previous recognition received.

  4. Receive Startup Recognition Number: Once the application is approved by the ministry, a unique startup recognition number is provided. This recognition allows startups to enjoy various benefits.

Benefits for DPIIT Recognized Startups:

Startups with DPIIT recognition can access several benefits, including:

  1. Self-Certification: Recognized startups can self-certify compliance with three environmental laws and six labor laws.

  2. Start-Up Patent Application: These startups enjoy an 80% reduction in fees for patent, trademark, copyright, and design registration. Additionally, they can fast-track patent applications.

  3. Easier Public Procurement: Recognized startups can list their products on the Government e-Marketplace and are exempt from providing Earnest Money Deposits. Prior experience/turnover requirements are waived in central government ministries and departments.

  4. Easy Winding Up: Startups can wind up their companies within 90 days of applying for insolvency, in accordance with the Insolvency and Bankruptcy Code, 2016.

  5. Funds of Funds: Eligibility for Rs. 10,000 crore in funds of funds from Alternative Investment Funds.

  6. Credit Guarantee Fund: Access to a Rs. 2,000 crore Credit Guarantee Fund through the National Credit Guarantee Trust Company or SIDBI over four years.

  7. Tax Exemptions: Startups can apply for tax exemption under Section 80IAC of the Income Tax Act and Angel Tax Exemption. After obtaining clearance, they are exempt from income tax for three consecutive fiscal years out of the first ten years since formation.

Documents Required for Startup India Recognition:

Documents necessary for obtaining Startup India Recognition include:

  • Proof of Funding (if applicable)

  • Awards received by the entity

  • Patent documents published in patent journals