Comprehensive Benefits of Startup India Registration (DPIIT Recognition)
1. 3 Years Income Tax Exemption under Section 80-IAC
Recognized startups can apply for a 100% tax exemption on profits for 3 consecutive financial years out of the first 10 years since incorporation. This benefit significantly reduces the tax burden during the critical early growth phase. The exemption is subject to approval by the CBDT (Central Board of Direct Taxes) after DPIIT recognition.
Why it matters: Boosts cash flow, reinvestment opportunities, and reduces early-stage financial stress.
2. Access to Government Tenders & Startup Funding Schemes
DPIIT-recognized startups can directly apply for government tenders and avail priority access without needing prior experience or turnover criteria in certain cases. They’re also eligible to apply under various funding schemes like SIDBI Fund of Funds, Start-up India Seed Fund Scheme, and state-level grants.
Why it matters: Eases entry into large contracts and provides access to much-needed capital.
3. Faster IPR Processing with 80% Rebate on Patent Filing
Startups enjoy fast-track examination of patents and trademarks along with an 80% rebate on patent filing fees and 50% rebate on trademark applications. DPIIT also facilitates legal and IP support through certified facilitators.
Why it matters: Encourages innovation protection at reduced costs and faster turnaround times.
4. Self-Certification under 9 Labour Laws & 3 Environmental Laws
Startups can self-certify their compliance under specified labour and environmental laws for up to 5 years from the date of incorporation. This includes laws related to EPF, ESI, Gratuity, and Environmental Clearances.
Why it matters: Minimizes inspection-related delays and promotes ease of doing business.
5. Easy Exit Option within 90 Days under IBC
Recognized startups that fail to sustain operations can close their business within 90 days through a simplified exit process under the Insolvency and Bankruptcy Code (IBC). Only a resolution professional is appointed for the winding-up process.
Why it matters: Saves time, cost, and mental stress of entrepreneurs looking to shut down operations smoothly.
6. Networking Opportunities through Startup India Hub
Startups gain access to the Startup India Virtual Hub, which connects them with investors, mentors, incubators, government agencies, legal experts, and fellow entrepreneurs across India. This community is vital for collaborative growth and business partnerships.
Why it matters: Promotes brand visibility, mentorship, and access to exclusive startup events and summits.
Certificate of Incorporation (as a Pvt Ltd, LLP, or OPC)
