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What is Startup Recognition under the Startup India initiative?
Startup Recognition is a formal acknowledgment by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative, allowing eligible entities to access tax exemptions, self-certification benefits, and support for intellectual property rights, funding, and government tenders.
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Who provides the recognition for startups in India?
The recognition is provided by DPIIT (Department for Promotion of Industry and Internal Trade) after reviewing and approving the application submitted via the Startup India portal.
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What type of companies are eligible to apply for Startup Recognition?
Entities registered as a Private Limited Company, Limited Liability Partnership (LLP), or Partnership Firm in India are eligible to apply, provided they meet the other qualifying criteria.
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How old should a company be to qualify for Startup Recognition?
The company must not be older than 10 years from the date of its incorporation or registration to be eligible for Startup Recognition.
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Is there any turnover limit for a company to apply for recognition?
Yes, the company’s annual turnover should not have exceeded ₹100 crore in any financial year since its incorporation or registration.
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Can a company formed by splitting or restructuring an existing business get Startup Recognition?
No, entities formed by splitting up or reconstructing an existing business are not eligible for recognition under the Startup India scheme.
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Does innovation play a role in qualifying for Startup Recognition?
Yes, the startup must be working towards innovation, development, or improvement of products, services, or processes, or have a scalable model with potential for job creation or wealth generation.
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How can a startup apply for DPIIT recognition?
The startup must first register on the Startup India Portal, complete its profile, and submit an application through the portal’s dashboard along with the necessary documents.
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What is the benefit of getting a Certificate of Recognition from DPIIT?
Once DPIIT grants the Certificate of Recognition, the startup becomes eligible for tax benefits, easier compliance, funding support, IP rights fast-tracking, and access to government initiatives.
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What are the tax exemptions available to recognized startups?
Recognized startups can apply for a 100% tax exemption on profits under Section 80 IAC for any three consecutive years out of their first ten years of incorporation.
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Are all recognized startups eligible for the 80 IAC tax exemption?
No, only Private Limited Companies and LLPs incorporated after 1st April 2016 are eligible for the 80 IAC tax exemption, and they must fulfill additional conditions specified by the Income Tax Department.
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What is Angel Tax Exemption, and how can startups avail it?
Angel Tax Exemption under Section 56(2)(viib) allows DPIIT-recognized startups to receive investments above fair market value without being taxed, subject to meeting the prescribed eligibility norms.
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Can recognized startups apply for government tenders?
Yes, recognized startups are allowed to apply for government tenders and may be exempted from prior experience or turnover requirements in certain cases.
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What is self-certification under Startup Recognition?
Self-certification allows recognized startups to comply with nine labor laws and three environmental laws without requiring prior inspection for up to five years, reducing compliance costs and efforts.
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What is the Fund of Funds under the Startup India scheme?
The Fund of Funds is a ₹10,000 crore initiative managed by SIDBI that supports DPIIT-recognized startups indirectly through investments in SEBI-registered venture capital funds.
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Are there networking opportunities for recognized startups?
Yes, the government conducts two annual startup fests where recognized startups can connect with investors, industry experts, and ecosystem enablers.
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How quickly can a recognized startup shut down operations if needed?
Recognized startups can wind up their operations within 90 days of filing an application under the Insolvency and Bankruptcy Code, enabling faster exit procedures.
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What documents are required for the Startup Recognition application?
Essential documents include Certificate of Incorporation/Registration, PAN Card, MOA or Partnership Deed, a brief on innovation, demo/product link, funding details, team information, and representative contact details.
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What is the step-by-step process to obtain Startup Recognition through EbizFiling?
You need to fill a checklist, submit documents, complete verification, apply through the portal, and receive your DPIIT recognition certificate—all guided by a dedicated Compliance Manager from EbizFiling.
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Why choose EbizFiling for Startup Recognition services?
EbizFiling offers expert compliance support, affordable pricing, personalized assistance, and end-to-end handling of the Startup Recognition process, including document preparation, application submission, and updates throughout the journey.