Start-Up / DPIIT Registration

Introduction and Importance

Startup India was launched in January 2016 which paved the way for the introduction of several policy initiatives to build a strong, conductive, growth-oriented environment for Indian startups. Startup India Registration with the DPIIT is mandatory for startups established in India to avail of tax benefits, concessions on IPR filing, and reduced compliances. Department for promotion of industry and internal trade i.e. DPIIT plays an important role in promoting the industrial development of the country by facilitating investment in new and upcoming technology, foreign direct investment, and supporting the balanced development of industries.

To be recognized as a StartUp and eligible for DPIIT StartUp recognition a company should meet the following criteria:

  • Period of existence and operations should not be exceeding 10 years from the Date of Incorporation
  • Incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership
  • Should have an annual turnover not exceeding Rs. 100 crores for any of the financial years since its Incorporation
  • Should work towards the development or improvement of a product, process, or service and/or have a scalable business model with high potential for the creation of wealth & employment

Registration of DPIIT leads to multiple benefits such as 80 IAC tax exemption, tax exemption under section 56 of the Income Tax Act, self-certification and no inspection for three years, concession in trademark filings fees, preference in government tenders, and funding support by government, etc., thereby allowing them to focus on their core business and keep compliance costs low.

The Department handles matters related to the protection of intellectual property rights (IPR) and administers six Acts related to IPRs. The Department is also responsible for determining the Industrial Policy at the Central Government level, including the following matters:

  • Productivity in the Indian industry
  • Industrial Management
  • Matters related to e-Commerce and start-ups
  • Facilitating Ease of Doing Business (EoDB)
  • Promotion of internal trade including retail trade, the welfare of traders and their employees, and
  • Administration of Industries (Development and Regulation) Act, 1951, grant of Industrial Licenses and acknowledging Industrial Entrepreneurs Memorandum

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