Harun Raaj & AssociatesHarun Raaj & Associates
Wealth & Treasury Management

Startup India DPIIT Recognition

Startup India DPIIT Recognition

Start — upload documents, pay when ready →Talk to a CAWhatsApp us
SCOPEConfirmed in writing
TYPICAL TIMELINE7–10 days
DOCS REQUIRED3 documents

Regulatory Framework

Startup India / DPIIT recognition is currently governed by the revised framework notified under G.S.R. 108(E), dated 4 February 2026, which replaced the 2019 recognition criteria.

An entity is eligible if it is a Private Limited Company (Companies Act, 2013), a Limited Liability Partnership (LLP Act, 2008), a registered partnership firm (Indian Partnership Act, 1932), or a cooperative society, and it: (a) has not completed 10 years from the date of incorporation or registration (extended to 20 years for entities recognised in the Deep Tech category); and (b) has not had annual turnover exceeding ₹200 crore in any financial year since incorporation (₹300 crore for Deep Tech). A sole proprietorship is not an eligible entity type. Recognition is granted free of charge through the Startup India portal / National Single Window System, typically within 2–10 working days of a complete application.

Because DPIIT recognition carries no government fee, it should be positioned to clients as an advisory-fee-only engagement — helping structure the application, entity documentation, and Deep Tech classification where relevant — rather than priced as if a statutory filing fee is involved, consistent with how we treat Udyam registration.

This 4 February 2026 notification is a recent regulatory revision. Given its recency, we treat the eligibility framework above as confirmed (it is consistently and independently corroborated across multiple professional sources, including specialist law firms), but we verify the exact gazette text against the DPIIT/Startup India portal before quoting specific figures in binding client communication, and will revisit this note if the notification is further amended.

Overview

Startup India DPIIT recognition is the certification of an entity as a startup under the Startup India initiative — the recognition granted by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India Policy, for the entities that meet the prescribed criteria of the age, the turnover and the innovation. The recognition unlocks the benefits the policy and the law provide — the income tax exemption under Section 80-IAC of the Income-tax Act 1961 for the eligible startups, the exemption from the angel tax under Section 56(2)(viib) where the conditions are met, the self-certification under the labour laws, and the access to the startup ecosystem's programs.

The DPIIT recognition is the startup's passport to the ecosystem's benefits — the 80-IAC exemption on the three out of the ten years' profits, the capital gains and the other tax concessions, the government procurement advantages, and the access to the funding and the support programs. The recognition is applied for online on the Startup India portal with the entity details and the innovation documentation, and it must be maintained against the conditions the policy prescribes.

The cost of the missing recognition is the missed benefit: the profits taxed that the 80-IAC would have exempted, the funding that the angel tax exemption would have protected, the schemes that the startup could not access.

This service is for startups seeking the DPIIT recognition. We assess the eligibility under the Startup India criteria, prepare and file the recognition application with the entity and the innovation details, obtain the recognition, and structure the benefits — the 80-IAC exemption, the angel tax position — so the startup carries the recognition and its advantages.

How It Works

  1. 1

    Eligibility Assessment

    We assess the eligibility under the Startup India criteria.

    Harun Raaj & Associates does this1 week
  2. 2

    Application Preparation

    We prepare the application with the entity and the innovation details.

    Harun Raaj & Associates does this1 week
  3. 3

    DPIIT Filing

    We file the recognition application on the Startup India portal.

    Harun Raaj & Associates does this1-2 weeks
  4. 4

    Recognition Obtainment

    We obtain the recognition certificate.

    Government2-8 weeks
  5. 5

    Benefit Structuring

    We structure the 80-IAC exemption and the angel tax position.

    Harun Raaj & Associates does this2-4 weeks

Frequently Asked Questions

What are the eligibility criteria for DPIIT recognition as a startup?
Under Gazette Notification G.S.R. 127(E) dated February 19, 2019, an entity is eligible for DPIIT recognition if it is incorporated as a private limited company, a registered partnership firm, or an LLP and is not more than ten years old from the date of incorporation. The entity's annual turnover must not have exceeded Rs 100 crore in any of the previous financial years. It must be working toward innovation, development, or improvement of products, processes, or services, or be a scalable business model with a high potential of employment generation or wealth creation. An entity formed by splitting or reconstructing an existing business does not qualify, and a subsidiary or associate of an existing company formed for splitting purposes is similarly excluded under Para 2 of the Startup India notification.
What tax exemptions are available to a DPIIT-recognised startup under the Income Tax Act?
A DPIIT-recognised startup that obtains inter-ministerial board (IMB) certification is eligible for a 100% income tax deduction on profits for any three consecutive assessment years out of the first ten years from incorporation under Section 80-IAC of the Income Tax Act 1961, subject to the startup's total turnover not exceeding Rs 100 crore in the year of claim. The Section 56(2)(viib) angel tax on issue of shares above fair market value was abolished with effect from April 1, 2025 by the Finance Act 2025, so DPIIT-recognised startups no longer need a separate angel tax exemption notification. Carry-forward and set-off of losses is permitted for seven years even upon change in shareholding under Section 79 of the Income Tax Act 1961, which is a relaxation not available to ordinary companies. Capital gains exemption is available under Section 54GB if an individual invests capital gains from the sale of a residential property into eligible startup equity.
How does a startup apply for DPIIT recognition and how long does it take?
DPIIT recognition is obtained by filing a self-declaration on the Startup India portal (startupindia.gov.in) in the application form prescribed under the Startup India scheme, certifying compliance with all eligibility conditions under G.S.R. 127(E). No physical documents are required to be submitted at the time of application; the declaration is sufficient for DPIIT to issue the recognition certificate, typically within two working days of a complete application. The certificate carries a system-generated DPIIT recognition number that is used for accessing benefits including fast-tracking of patent applications (80% fee rebate under Para 5(A) of the Startup India action plan) and self-certification of nine labour and three environment laws. If any condition is found violated post-recognition, DPIIT can revoke recognition and the startup becomes liable to taxes and penalties as if it were never recognised.
What is the process to claim the Section 80-IAC deduction and is DPIIT recognition alone sufficient?
DPIIT recognition alone is not sufficient to claim the Section 80-IAC deduction — the startup must additionally obtain a certificate from an Inter-Ministerial Board (IMB) constituted by DIPP, confirming that the entity's business involves innovation and technology. The IMB certificate application is filed separately on the Startup India portal with a detailed project description and supporting evidence of innovation or scalable business model. Once the IMB certificate is obtained, the deduction is claimed in the ITR of the relevant assessment year by filling Schedule 80-IAC, and the claim is subject to scrutiny assessment under Section 143(3) of the Income Tax Act 1961. The deduction is available only for a company or LLP, not for a registered partnership firm under the current statutory text of Section 80-IAC(1).
Can a startup with foreign investment or foreign shareholders obtain DPIIT recognition?
Yes, the eligibility criteria under G.S.R. 127(E) do not restrict DPIIT recognition on the basis of foreign shareholding or foreign investment. A private limited company with foreign investors holding shares under the automatic route of the Foreign Exchange Management (Non-Debt Instruments) Rules 2019 can apply for and receive DPIIT recognition without any additional approvals. However, for the purpose of the Section 80-IAC deduction, the eligible startup must be a company or LLP incorporated in India, and all conditions under Section 80-IAC of the Income Tax Act 1961 including the turnover and age criteria must be satisfied independently of DPIIT recognition. Foreign-owned startups must ensure that their share issuances comply with FDI pricing guidelines under Rule 21(7) of the NDI Rules 2019, particularly relevant now that the angel tax on share premiums has been abolished from April 1, 2025.

Ready to get Startup India DPIIT Recognition?

File a request in under 2 minutes. Our team contacts you within 24 hours.

Start — upload documents, pay when ready →