Startup India Registration

Startup India DPIIT recognition with tax exemption and angel tax benefits.

Startup India recognition is a certificate from DPIIT confirming that an entity qualifies as a startup, and its value is entirely in what it unlocks: a three-year income tax holiday under section 80-IAC for approved applicants, exemption from angel tax scrutiny on share premium under section 56(2)(viib), self-certification on nine labour and environment laws, and access to public procurement without the turnover and experience conditions. Recognition itself is free and quick; the section 80-IAC exemption is a separate application with a separate board and a much lower approval rate.

Who this is for

3-year tax exemption
Angel tax relief
Self-certification
Govt tender exemption

The process

What we actually do

1
We check eligibility before applying
Incorporated as a private limited company, LLP or registered partnership, within ten years, turnover never above ₹100 crore in any year, and not formed by splitting up or reconstructing an existing business. That last condition is the one that quietly disqualifies restructured family businesses.
2
We write the innovation case properly
Recognition requires working towards innovation, development or improvement of products or processes, or a scalable business model with potential for employment or wealth creation. The application is assessed on what is written, and a generic description is the usual reason one is rejected.
3
We file for DPIIT recognition
The application goes through the Startup India portal with the incorporation certificate, the entity details and the description of the business. Recognition is free and generally issued quickly.
4
We apply separately for section 80-IAC where it is worth it
The tax holiday is not part of recognition. It requires a separate application to the Inter-Ministerial Board, is available to companies and LLPs incorporated before the statutory cut-off, and is approved at a much lower rate. We are straight about the odds before the effort.
5
We put the angel tax exemption in place before the round
The section 56(2)(viib) exemption on share premium is claimed by declaration in Form 2 and has to be in place before the investment, not after the assessment questions it.

Who this is for

Companies and LLPs incorporated within the last ten years with turnover under ₹100 crore
Startups raising angel investment, where the section 56(2)(viib) exemption matters most
Startups bidding for government tenders, where the turnover and experience relaxation is decisive
Entities seeking the three-year tax holiday under section 80-IAC

How long it takes

DPIIT recognition typically within two to three weeks of a complete application. The section 80-IAC approval runs on the Inter-Ministerial Board's own cycle and takes considerably longer.

If you do nothing

Nothing breaks. What is lost is a three-year tax holiday the company may have qualified for, an exemption that would have kept a funding round out of an angel tax assessment, and eligibility for government tenders the company is otherwise shut out of by turnover conditions. Recognition is free, so the only cost of applying is the time to write the case properly.

The law, in figures

Dates, thresholds and sections

Every figure below carries the provision it comes from, so it can be checked.
What	Figure	Source
Age limit	Up to 10 years from incorporation	DPIIT Notification G.S.R. 127(E) dated 19 February 2019
Turnover limit	Never exceeding ₹100 crore in any financial year since incorporation	DPIIT Notification G.S.R. 127(E)
Eligible entities	Private limited company, LLP, or registered partnership firm	DPIIT Notification G.S.R. 127(E)
Tax holiday	100% deduction of profits for 3 consecutive years out of the first 10	Section 80-IAC, Income-tax Act 1961
Angel tax exemption	Exemption from section 56(2)(viib) on share premium, by declaration in Form 2	DPIIT Notification G.S.R. 127(E), paragraph 4
Self-certification	Nine labour and environment laws, for a specified period	Startup India Action Plan

What usually goes wrong

Assuming recognition brings the tax holiday — section 80-IAC is a separate application with separate approval
Applying with a generic business description that does not establish innovation or scalability
Restructuring an existing business into a new entity and applying, which the splitting-up condition excludes
Claiming the angel tax exemption after the investment has already been received and questioned
Losing eligibility by crossing ₹100 crore turnover, which is measured against every year since incorporation

What non-compliance costs

No penalty for not registering — the cost is the benefits forgone
Withdrawal of recognition where it was obtained on incorrect information
Section 56(2)(viib) assessed on share premium in the ordinary way where the exemption was not in place
Loss of the 80-IAC deduction where the conditions are breached in a later year

These are statutory amounts, not our fees. What we charge depends on your situation and is quoted before any work starts.

Not to be confused with

These come up in the same conversation and are routinely treated as the same thing. They are not.

Udyam registration

Udyam classifies an enterprise as micro, small or medium for MSME benefits, at any age. DPIIT recognition is time-limited and innovation-based, and the two carry entirely different benefits.

Section 80-IAC approval

DPIIT recognition is the entry ticket. The tax holiday is a separate Inter-Ministerial Board approval that most recognised startups do not receive.

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