Startup India

Under the Startup India initiative, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more.

Benefits from DPIIT

Under the Startup India Initiative, the companies which are registered under DPIIT are eligible to receive the following benefits:

Simplification and Handholding – Easier compliance, easier exit process for failed startups, legal support, fast-tracking of patent applications, and a website to reduce information asymmetry.
Funding & Incentives – Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to infuse more capital into the startup ecosystem and a credit guarantee scheme.
Incubation & Industry-Academia Partnerships – Creation of numerous incubators and innovation labs, events, competitions, and grants.

Eligibility For Startup Registration     

• The company to be formed must be a private limited company or a limited liability partnership.
• It should be a new firm or not older than five years, and the total turnover of the company should not exceed 25 crores.
• The firms should have obtained approval from the Department of Industrial Policy and Promotion (DIPP).
• To get approval from DIPP, the firm should be funded by an Incubation fund, Angel Fund, or Private Equity Fund.
• The firm should have obtained a patron guarantee from the Indian Patent and Trademark Office.
• It must have a recommendation letter from an incubation.
• Capital gain is exempted from income tax under the Startup India campaign.
• The firm must provide innovative schemes or products.

Angel funds, Incubation funds, Accelerators, Private Equity Funds, and Angel networks must be registered with SEBI ( Securities and Exchange Board of India).