The Startup India Initiative
Launched by the Government of India, the Startup India program aims to nurture innovation, generate employment, and support sustainable economic growth. Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) can access major benefits, including tax holidays, fast-track intellectual property processing, and access to capital funds.
Major Recognition Benefits
- 3-Year Tax Holiday (Section 80-IAC): Eligible startups are exempt from paying corporate income tax for three consecutive years out of their first ten years.
- Angel Tax Exemption (Section 56(2)(viib)): Startups are exempt from taxes on share premiums raised above fair market value.
- Patent Fast-Tracking & Rebates: Up to 80% rebate on patent filings and 50% on trademark registration fees.
- Easy Public Procurement: Exemption from earnest money deposits and prior experience criteria when bidding for public tenders.
Eligibility Criteria
- Must be registered as a Pvt Ltd, LLP, or Registered Partnership in India.
- Company age must not exceed 10 years from the incorporation date.
- Annual turnover must not have crossed Rs. 100 Crores in any financial year.
- Must be working towards innovation, development, or improvement of products, processes, or services.