Startup India Registration & DPIIT Recognition in Delhi
DPIIT recognition under the Startup India scheme — eligibility review, application on the Startup India portal and follow-on applications such as the Section 80-IAC tax holiday.
Quick answers
What is Startup India registration?
Startup India registration means obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India scheme. The recognition certificate carries a unique number and opens access to benefits such as the Section 80-IAC tax holiday application, self-certification under specified labour and environmental laws, and IPR fast-tracking.
Who can apply for DPIIT recognition?
Under DPIIT notification G.S.R. 108(E) dated 4 February 2026, private limited companies, LLPs, registered partnership firms and cooperative or multi-state cooperative societies that are less than 10 years old, have not exceeded Rs 200 crore turnover in any financial year since incorporation or registration, were not formed by splitting or reconstructing an existing business, and are working on innovation or improvement of products or services with potential for employment or wealth creation. A recognised Deep Tech Startup has a 20-year period and a Rs 300 crore turnover limit.
How does SKAG and Associates handle the application?
The firm checks the eligibility criteria, collates the incorporation certificate, PAN, founder profiles and a business note, drafts the application describing the innovation and scalability, and submits it on the Startup India portal. After recognition, it assists with separate applications such as the Section 80-IAC tax holiday before the Inter-Ministerial Board.
What our Startup India Registration service covers
How the engagement works
Documents required
- → Certificate of Incorporation (Pvt Ltd / OPC / LLP / Partnership)
- → PAN of the entity
- → Founders / Directors / Partners details with photos
- → Brief about product/service (max 500 words)
- → Brief about innovation element (max 500 words)
- → Brief about scalability (max 500 words)
- → Website URL (if any)
- → Pitch deck (PDF)
- → IP details — patents, trademarks, copyrights (if any)
- → Awards or recognition (if any)
- → Funding details — investor names, amount, date (if any)
- → GST registration certificate (if applicable)
Startup India Registration: rules and practical points
DPIIT recognition — eligibility criteria
DPIIT notification G.S.R. 108(E) dated 4 February 2026 replaced the earlier notification G.S.R. 127(E) of 19 February 2019. To be recognised as a Startup, the entity must satisfy all five criteria:
| Criterion | Requirement |
|---|---|
| Entity type | Private Limited Company / LLP / Registered Partnership Firm / Cooperative Society or Multi-State Cooperative Society (sole proprietorships are not eligible) |
| Age | Less than 10 years from date of incorporation/registration (20 years for a Deep Tech Startup) |
| Turnover | Turnover has not exceeded Rs 200 crore in any financial year since incorporation/registration (Rs 300 crore for a Deep Tech Startup) |
| Originality | Not formed by splitting up or reconstruction of an existing business |
| Innovation | Working towards innovation, development, or improvement of products/services with high potential for employment generation or wealth creation |
Key benefits of DPIIT recognition
1. Tax Holiday under Section 80-IAC
A DPIIT-recognised startup can claim 100% income tax exemption for 3 consecutive years out of the first 10 years from incorporation, subject to:
- Incorporated on or after 1 April 2016 and before 1 April 2030 (window extended from 31 March 2025 by the Finance Act, 2025)
- Turnover not exceeding Rs 100 crore in the year of claim (this income-tax limit is separate from the Rs 200 crore DPIIT recognition limit)
- Separate approval by the Inter-Ministerial Board (IMB) on application
- Entity must be Pvt Ltd or LLP (not partnership)
From tax year 2026-27, the Income-tax Act, 2025 carries this deduction in Section 140, with the same incorporation window (up to 31 March 2030) and Rs 100 crore turnover condition; Section 80-IAC continues to govern earlier assessment years.
2. Angel Tax Exemption under Section 56(2)(viib)
Where a startup issues shares to a resident investor at a premium above fair market value, the excess is taxable as "Income from Other Sources" under Section 56(2)(viib) — known as "Angel Tax". DPIIT-recognised startups can claim exemption by filing Form 2 declaration, subject to:
- Paid-up capital and share premium up to Rs 25 crore (excluding investments by certain entities)
- Investments only in specified assets (no real estate, lending, etc.)
- 5-year lock-in on the use of funds
Note: The Finance (No. 2) Act, 2024 omitted Section 56(2)(viib) with effect from AY 2025-26, so this exemption is now relevant mainly to share issues and assessments of earlier years.
3. IPR fast-tracking and 80% rebate
Under the Startups Intellectual Property Protection (SIPP) scheme:
- 80% rebate on patent filing fees
- 50% rebate on trademark filing fees
- Fast-tracked examination of patent applications
- Free panel of facilitators (advocates, patent agents) for filing assistance
4. Self-certification under 6 labour laws and 3 environment laws
Recognised startups can self-certify compliance with the following, with no labour inspections for 5 years except on a credible complaint:
- Building and Other Construction Workers Act, Inter-State Migrant Workmen Act, Payment of Gratuity Act, Contract Labour (Regulation and Abolition) Act, EPF and Miscellaneous Provisions Act, ESI Act
- Water (Prevention and Control of Pollution) Act 1974, Water (Prevention and Control of Pollution) Cess (Amendment) Act 2003, Air (Prevention and Control of Pollution) Act 1981
5. Other benefits
- Public Procurement: Eligibility for government tenders without prior experience or turnover criteria
- Fund of Funds: Access to Rs 10,000 crore SIDBI Fund of Funds for Startups
- Carry-forward of losses (Section 79): Even if shareholding changes, losses can be carried forward subject to certain conditions
- Easy winding up: Fast-track exit under Insolvency and Bankruptcy Code within 90 days
Common reasons applications get rejected
- Generic business description — no clear innovation element
- Restructured family business presented as a startup
- Service/consultancy without product or scalability story
- Missing brief on traction, market validation, or proof of concept
- Mismatch between MOA objects and the actual business pitched
We help craft a strong application with the right narrative on innovation and scalability — the two factors most heavily weighted by the recognition panel.
Startup India Registration for clients in New Delhi & Delhi NCR
SKAG and Associates is a firm of Chartered Accountants based at Kh.No-84, Plot No -RZ-I-1, F/Floor, 12/2, Main Rd, opposite Yammaha Showroom, Mahavir Enclave, New Delhi – 110045. We provide startup india registration and allied compliance support to individuals, professionals, firms and companies across New Delhi, South West Delhi and the wider Delhi NCR region, as well as clients elsewhere in India who engage us remotely.
Engagements are conducted strictly in accordance with the Chartered Accountants Act, 1949 and the ICAI Code of Ethics. To discuss your requirement, you are welcome to contact the office or call +91 88022 54567 during working hours (Mon–Sat, 10:00 AM–7:00 PM).
Frequently asked questions
Is DPIIT recognition the same as Section 80-IAC tax holiday approval? +
No, they are two separate approvals. DPIIT recognition (issued by DPIIT) makes you eligible to apply for the tax holiday, but the 80-IAC approval comes from a separate Inter-Ministerial Board (IMB), which evaluates the startup's innovation, business model and growth potential. The IMB approval rate is significantly lower than DPIIT recognition rate — the application must be carefully drafted.
Can a partnership firm or sole proprietorship be recognised as a Startup? +
A Registered Partnership Firm can be recognised as a Startup under the scheme. However, Sole Proprietorships are NOT eligible. Also, partnerships are eligible only for some benefits — the 80-IAC tax holiday is available only to Pvt Ltd companies and LLPs, not partnerships.
How long is DPIIT recognition valid? +
Under G.S.R. 108(E) dated 4 February 2026, an entity remains a Startup for 10 years from the date of incorporation or registration (20 years for a Deep Tech Startup), OR until its turnover in any financial year crosses Rs 200 crore (Rs 300 crore for a Deep Tech Startup) — whichever is earlier. Once these conditions are breached, the entity ceases to be a "Startup" under the scheme.
Can a startup that has already received funding apply for DPIIT recognition? +
Yes. Prior funding does not disqualify an entity. In fact, demonstrated investor interest often strengthens the recognition application by showing market validation. Disclose all funding rounds, investor names and amounts in the application. For earlier years, the angel tax exemption u/s 56(2)(viib) carried specific conditions on the source and quantum of investments; the provision was omitted from AY 2025-26.
What if my startup has only an idea and no product yet? +
Pre-revenue startups can apply, but the application must show a clear roadmap, prototype/MVP development, and innovation element. The panel evaluates "potential" rather than current revenue. Strong supporting evidence helps: technical papers, patent filings, lab tests, pilot customers, or letters of intent.
Are foreign nationals or NRIs eligible to be founders of a DPIIT-recognised startup? +
Yes. There is no nationality restriction on founders. However, the entity must be incorporated in India (not overseas). Foreign founders must comply with FEMA rules for FDI in their startup. Also, the company must comply with sectoral FDI caps applicable to its business.
Questions about Startup India Registration?
You may contact CA Gaurav Singh to discuss your specific facts and requirements.
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