§1Who it is for
- Private limited companies, registered partnership firms, LLPs and cooperative societies working on innovation or scalable models
Useful if
Any founder with a pvt ltd/LLP/partnership doing something new or scalable.
Do not spend time on it if
Traders or reconstructed old businesses.
§2Eligibility
- Incorporated/registered in India as a private limited company, registered partnership firm (sec 59, Partnership Act 1932), LLP, Multi-State Cooperative Society, or a State/UT cooperative society.
- Within 10 years of incorporation/registration (20 years for Deep Tech Startup).
- Turnover in any year since incorporation not above ₹200 crore (₹300 crore for Deep Tech).
- Working towards innovation/improvement of products, processes or services, or a scalable model with high employment or wealth-creation potential.
- Not formed by splitting up or reconstructing an existing business.
- Deep Tech: new scientific/engineering knowledge, high R&D spend as % of revenue/funding, owns or is creating significant novel IP, long gestation and high technical uncertainty.
§3Benefits
- Section 80-IAC (Sec 140 of new Act): 100% deduction of profits for any 3 consecutive years within first 10 years — only for pvt ltd companies/LLPs incorporated 1 Apr 2016 to before 1 Apr 2030, turnover ≤ ₹300 crore in that year, with IMB certificate.
- Angel tax (tax on share premium above FMV) abolished from 1 Apr 2025.
- Deferred tax on ESOPs and relaxed carry-forward of losses for eligible (IMB-certified) startups.
- Self-certification under labour and environment laws; no labour inspections for a specified period.
- Public procurement: exemption from EMD/bid security; relaxed prior turnover and experience.
- Reduced patent filing fees and expedited patent examination.
- Fast-track winding up within 90 days vs 180 days.
- Access to SISFS, Fund of Funds, CGSS and other schemes.
§4Norms — pattern of assistance
- Tax holiday needs separate Inter-Ministerial Board (IMB) certification on the Startup India portal after recognition.
- MAT/AMT may still apply (Tax Playbook).
§5Documents
Tick each one as you get it ready.
Details of directors / partners
§6How to apply
- 1
Create an account on NSWS (www.nsws.gov.in).
- 2
Add form 'StartUp Recognition by DPIIT' under Central Approvals and submit.
- 3
For 80-IAC, apply for IMB certificate on the Startup India portal after recognition.
§7Pros and cons
Merits
- Free and online; minimal documents (Startup India playbook).
- Recognition unlocks GeM Startup Runway, SISFS, FoF-backed VC, CGSS loans.
- 80-IAC window open for incorporations till 31 Mar 2030 (Tax Playbook).
Demerits
- Proprietorships cannot be recognised (entity list in definition).
- 80-IAC needs a second approval (IMB) and is not available to partnership firms or cooperatives (Tax Playbook eligibility: pvt ltd or LLP).
- Recognition alone gives no cash.
→Related schemes
Need help with DPIIT Startup Recognition?
Eligibility check, DPR and application file — ask us on WhatsApp.
Our interestHelp is our paid service. You can also apply for the scheme yourself.
¶Sources
- PIB, 5 Feb 2026: Government revises startup recognition framework
- Startup India: Startup Playbook — Exclusive Benefits for DPIIT Recognised Startups (April 2026)
- Startup India: Tax Playbook for Startup Ecosystem (May 2026)
- Startup India: DPIIT Startup Recognition & Tax Exemption page
- PIB, 17 Apr 2026: 55,200+ startups recognised in FY 2025-26 (FFS, SISFS, CGSS status)
Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.
