Can an Indian Subsidiary Company Register as a Startup in India? 

No. As per DPIIT guidelines, subsidiaries are not eligible for Startup India recognition, even if they are innovative or registered in India. The scheme is designed only for independent entities where majority control lies with Indian promoters.

If a recognized startup is later acquired or becomes a subsidiary of another company, DPIIT cancels its recognition. This is to ensure the benefits are not extended to group entities or companies that restructure to bypass the rules.

Subsidiaries are excluded because DPIIT wants to promote genuinely new and independent businesses. Allowing subsidiaries could lead to large groups or foreign parents misusing the scheme for tax and compliance benefits.

Yes. If an application comes from a subsidiary, DPIIT may consider the combined turnover of the parent and group companies. However, since subsidiaries are ineligible upfront, such applications are usually rejected.

Yes. If the parent company reduces its stake below 50% and Indian promoters hold at least 51%, the company may qualify. This restructuring ensures that the entity functions independently and meets DPIIT’s ownership criteria.

No. Wholly-owned subsidiaries are fully controlled by a parent company and therefore disqualified. Recognition is only possible for independent startups with significant Indian ownership.

No. DPIIT specifically excludes entities created by splitting, rebranding, or reconstructing an existing business. Recognition is reserved for genuinely new and innovative ventures, not spin-offs.

No. Benefits like tax exemptions, self-certification, and funding access are available only to recognized startups. Subsidiaries may explore other government schemes or FDI-linked incentives, but Startup India benefits are not extended.

The required documents include the Certificate of Incorporation, PAN, shareholding structure showing at least 51% Indian ownership, financial statements, and a write-up on innovation. These help DPIIT confirm independence and originality.

Subsidiaries can either restructure their shareholding to reduce parent control or incorporate a new independent entity with majority Indian ownership. Otherwise, they must operate without Startup India benefits but can still access other compliance and funding opportunities.