India's startup incentive framework spans central and state-level benefits — from DPIIT recognition and tax holidays to self-certification relief, IPR rebates, and seed funding. Each carries its own eligibility gate, application sequence, and compliance trail.
DPIIT recognition is the gateway — without it, tax holidays, self-certification, IPR rebates, and government procurement preference remain inaccessible. We prepare your innovation narrative, compile eligibility documentation, and file the application through the National Single Window System portal.
With former Section 56(2)(viib) inapplicable from 1 April 2025, Section 80-IAC [ITA 2025: s. 140] remains available to an eligible startup as a 100% deduction for three consecutive years chosen within ten years from incorporation. We handle the Inter-Ministerial Board application, financial documentation, and certification process.
Entity type determines incentive eligibility. Private Limited Companies and LLPs may qualify separately for DPIIT recognition and Section 80-IAC [ITA 2025: s. 140], subject to each regime's distinct recognition, certification, incorporation-date, turnover and other conditions — Registered Partnership Firms may qualify for recognition alone. We incorporate your entity in the structure that aligns with the incentives you intend to access.
DPIIT-recognised startups self-certify compliance with nine labour laws and three environmental laws during their initial years — no inspections unless a formal complaint is filed. We register your entity on the Shram Suvidha Portal, establish the self-certification framework, and document your compliance position.
Beyond central benefits, thirty-one states and union territories operate their own startup policies — offering seed grants, incubation support, IPR subsidies, and sector-specific funding. We map applicable state-level incentives to your business profile and assist with grant applications and scheme registrations.
Not every startup needs to incorporate immediately. Employer of Record arrangements allow you to hire in India — managing payroll, statutory contributions, and labour law obligations — without establishing a legal entity. We advise on EOR structuring and transition planning for when full incorporation becomes appropriate.
India's startup benefits are conditional and sequential — DPIIT recognition enables tax holiday applications, entity type determines which exemptions apply, and each approval carries ongoing compliance obligations that sustain the benefit.
We review your business model, planned India activities, entity status, incorporation timeline, and incentive objectives — establishing which DPIIT recognition criteria you already meet and which require preparation before application.
We review your business model, planned India activities, entity status, incorporation timeline, and incentive objectives — establishing which DPIIT recognition criteria you already meet and which require preparation before application.
Based on your incentive targets, we recommend and incorporate the appropriate entity type — Private Limited Company or LLP — so the structure can satisfy the entity limb for DPIIT recognition and Section 80-IAC [ITA 2025: s. 140]; the separate recognition, certification, timing, turnover and other conditions must also be met.
Based on your incentive targets, we recommend and incorporate the appropriate entity type — Private Limited Company or LLP — so the structure can satisfy the entity limb for DPIIT recognition and Section 80-IAC [ITA 2025: s. 140]; the separate recognition, certification, timing, turnover and other conditions must also be met.
We prepare your innovation narrative, compile supporting documentation, and file the recognition application through the National Single Window System — managing the process through review, any clarification requests, and certificate issuance.
We prepare your innovation narrative, compile supporting documentation, and file the recognition application through the National Single Window System — managing the process through review, any clarification requests, and certificate issuance.
With recognition secured, we prepare your Section 80-IAC [ITA 2025: s. 140] application for the Inter-Ministerial Board, register for self-certification on the Shram Suvidha Portal, and initiate IPR fast-track filings where applicable.
With recognition secured, we prepare your Section 80-IAC [ITA 2025: s. 140] application for the Inter-Ministerial Board, register for self-certification on the Shram Suvidha Portal, and initiate IPR fast-track filings where applicable.
We map applicable state-level startup policies to your sector and geography, prepare grant applications for seed funding schemes, and register with relevant state startup portals to access incubation and funding programmes.
We map applicable state-level startup policies to your sector and geography, prepare grant applications for seed funding schemes, and register with relevant state startup portals to access incubation and funding programmes.
You receive a documented calendar covering applicable DPIIT profile updates, Section 80-IAC [ITA 2025: s. 140] conditions, self-certification filings, scheme-specific state reporting, income tax filings, and statutory obligations — with instrument-specific deadlines and consequences clearly mapped.
You receive a documented calendar covering applicable DPIIT profile updates, Section 80-IAC [ITA 2025: s. 140] conditions, self-certification filings, scheme-specific state reporting, income tax filings, and statutory obligations — with instrument-specific deadlines and consequences clearly mapped.
DPIIT recognition is the official Startup India status granted by the Department for Promotion of Industry and Internal Trade to an eligible entity. It is the gateway benefit, because the income tax holiday, the angel tax position, self-certification, the intellectual property rebates, and the public procurement preferences all require the entity to be recognised first. Recognition is obtained online and carries no government fee, and the certificate is issued through DigiLocker. We prepare the application and the innovation narrative, which is the part most often responsible for rejection.
Yes, provided the startup is incorporated in India. DPIIT recognition is available to an Indian private limited company or limited liability partnership, and foreign shareholding does not disqualify it. What matters is that the entity is registered in India, is within the age and turnover limits, and is working on an innovative or scalable product or service. A foreign parent can therefore hold its Indian startup and still reach the Startup India benefits through that entity. We confirm the structure qualifies before the application is filed.
Under the framework revised in February 2026, the entity must be a private limited company, a limited liability partnership, a registered partnership firm, or a cooperative society, and not a sole proprietorship. It must be within ten years of incorporation, or twenty years for a deep tech startup, and its turnover must not have exceeded Rs 200 crore in any financial year, or Rs 300 crore for a deep tech startup. It must be working towards innovation, development, or improvement of products or services, or have a scalable model with potential for employment or wealth creation, and it must not have been formed by splitting up or reconstructing an existing business. We assess each condition against your entity before applying.
The February 2026 framework introduced a separate Deep Tech category for startups built on substantial scientific or engineering advances, such as artificial intelligence, biotechnology, quantum computing, advanced materials, and space technology. It recognises that these ventures have longer development cycles, so it extends the recognition window to twenty years from incorporation, against ten years for a regular startup, and raises the turnover ceiling to Rs 300 crore, against Rs 200 crore. A deep tech application calls for additional documentation on the underlying science and the research activity. We advise whether your venture fits this category and prepare the supporting material.
The application is made online through the Startup India portal, which is integrated with the National Single Window System. It requires the entity's incorporation details, the directors or partners, and a description of the innovation, and there is no government fee. Recognition is usually granted within about one to two weeks where the application is complete, and the certificate is then available through DigiLocker. The innovation description is the single most common reason for rejection, so it is drafted with care. We compile the application and manage any clarification the department raises.
Section 80-IAC [ITA 2025: s. 140] gives an eligible recognised startup a deduction of 100% of its profits for three consecutive years. The startup chooses which three years to claim within its first ten years from incorporation, so the benefit can be aligned to its most profitable years. From 1 April 2026, the corresponding provision is Income-tax Act 2025 Section 140, which is the main active income-tax incentive for an eligible recognised startup. We model the best three-year window and prepare the claim.
The Section 80-IAC [ITA 2025: s. 140] holiday is narrower than recognition itself. The startup must be a private limited company or a limited liability partnership, not a partnership firm or cooperative society, and it must have been incorporated on or after 1 April 2016 and before 1 April 2030. Its eligible business must involve innovation, development or improvement of products, processes or services, or a scalable business model with high potential for employment generation or wealth creation, and it must not be formed by splitting up or reconstructing an existing business. The deduction is available for three consecutive years chosen within the first ten years. Turnover must remain within the governing limit: Rs 100 crore for a claim under Section 80-IAC [ITA 2025: s. 140] and Rs 300 crore for a claim governed by the 2025 Act. It must hold DPIIT recognition and, separately, the prescribed certificate of eligible business from the Inter-Ministerial Board. The Board reviews the application, but the governing instrument does not prescribe a fixed 120-day decision deadline. We prepare and present the Inter-Ministerial Board application.
No, and the two are often confused. DPIIT recognition is the base status that opens the door to the Startup India benefits. The Section 80-IAC [ITA 2025: s. 140] income tax holiday is a separate, additional approval that requires its own prescribed certificate from the Inter-Ministerial Board, and not every recognised startup obtains it. The two use different turnover limits: recognition generally allows turnover up to ₹200 crore, increased to ₹300 crore for a qualifying deep-tech startup under the 2026 notification, while the tax holiday applies to a narrower set of companies and limited liability partnerships with a ₹100 crore ceiling for a claim governed by Section 80-IAC [ITA 2025: s. 140] and ₹300 crore for a claim governed by the 2025 Act. We treat them as two separate applications and manage each.
Yes, on the same basis as any other startup. A foreign-owned but India-incorporated private limited company or limited liability partnership that holds DPIIT recognition can apply to the Inter-Ministerial Board for the 80-IAC [ITA 2025: s. 140] certificate and, once approved, claim the three-year deduction. Foreign ownership does not bar the holiday, provided the entity meets the incorporation date, turnover, and innovation conditions. We confirm eligibility and prepare the application so the claim is supportable on review.
It can. For pre-transition years, a company claiming Section 80-IAC [ITA 2025: s. 140] remained subject to 15% minimum alternate tax under Section 115JB [ITA 2025: s. 206]; from tax year 2026-27, Income-tax Act 2025 Section 206 generally sets company minimum alternate tax at 14%. An LLP is outside company MAT but may be subject to 18.5% alternate minimum tax under Section 115JC [ITA 2025: s. 206(2)] when it claims the startup deduction. The Finance Act 2026 omitted the general fresh company-MAT-credit clauses in Income-tax Act 2025 Sections 206(1)(m) to 206(1)(p), while Income-tax Act 2025 Sections 206(3) and 206(4) preserve specified credit standing at 31 March 2026 subject to their company-category, set-off and original 15-year conditions. We therefore model the entity, tax year and available brought-forward credit rather than treating the deduction as automatically tax-free.
No. Angel tax, the charge under the former Section 56(2)(viib) on share premium received above fair market value, was made inapplicable with effect from 1 April 2025 for every company. A startup raising funds above the fair value of its shares no longer faces this charge, and the earlier startup-specific exemption from it is now redundant. Valuation discipline still matters for other reasons, such as the foreign exchange pricing rules that apply when foreign investment comes in, which we address separately.
Usually yes, subject to the statutory conditions. Under Section 79 [ITA 2025: s. 119], a closely held company generally cannot carry forward an earlier loss unless persons holding at least 51% of the voting power at year-end also held at least 51% in the loss year. For an eligible startup, the percentage test is relaxed if every shareholder who held voting shares in the loss year continues to hold those shares at the end of the claim year and the loss arose within ten years from incorporation. We track these conditions through funding rounds.
A recognised startup can self-certify its compliance with nine labour laws and three environmental laws through the Shram Suvidha portal, rather than face routine inspections under each of them. For the labour laws this relief runs for up to five years from recognition, and no inspection is carried out unless a credible written complaint is received and approved by a senior officer. This lets a young team operate without the disruption of regular inspections before its systems are mature. We register the entity and document the compliance position that sits behind the self-certification.
Recognised startups receive meaningful support on intellectual property. They pay an 80% rebate on patent filing fees and a 50% rebate on trademark filing fees, and their applications are taken up for examination on a fast-track basis. The government also bears the cost of facilitators who assist with drafting and filing under the Startup Intellectual Property Protection scheme, so the startup pays only the statutory fees. These benefits matter for a technology or brand-led venture protecting its core assets early. We coordinate the filings and the facilitator engagement.
Yes. Recognised startups can sell to the government through the Government e-Marketplace, and they are exempted from the prior turnover and prior experience criteria that public tenders usually require, which otherwise shut out new entrants. They are also exempted from the Earnest Money Deposit on government tenders. This opens public-sector buyers to a startup that would not yet meet conventional vendor thresholds. We help register the entity and position it to use these exemptions.
Yes. A recognised startup can use the fast-track route under the Insolvency and Bankruptcy Code, which allows a far quicker wind-up, in as little as 90 days, than the ordinary process. This matters because founders weigh the cost of exit as well as entry, and a clean, quick closure releases the team and any remaining capital. We advise on the conditions for the fast-track route if and when it becomes relevant.
The Startup India Seed Fund Scheme provides early-stage capital to recognised startups through incubators approved under the scheme. It offers up to Rs 20 lakh as a grant for proof of concept, prototype, or product trials, and up to Rs 50 lakh as convertible debentures or debt for market entry, commercialisation, or scaling. The startup must be DPIIT-recognised, generally incorporated not more than two years earlier when it applies, and must not have drawn more than a small threshold of support from other government schemes. The scheme is open to recognised startups regardless of foreign shareholding. We assess eligibility and prepare the incubator application.
Beyond the Seed Fund, two central facilities help recognised startups raise capital. The Fund of Funds for Startups, operated through the Small Industries Development Bank of India, invests in venture capital funds that in turn back startups, rather than funding startups directly. The Credit Guarantee Scheme for Startups lets banks and other lenders provide collateral-free loans, currently up to Rs 10 crore per borrower, against a government guarantee. We identify which facility fits the stage and the need, and prepare the approach.
Most states and union territories run their own startup policies in addition to the central scheme, and the support varies widely by location and sector. It can include state seed grants, reimbursement of patent or registration costs, incubation and laboratory access, rent or payroll support, and sector-specific funding. Because the benefits and the eligibility differ from state to state, the choice of where to base the entity can affect what is available. We map the applicable state policy to your sector and location and assist with the applications.
Entity type decides which incentives are open. A private limited company or a limited liability partnership may qualify separately for DPIIT recognition and the Section 80-IAC [ITA 2025: s. 140] tax holiday, subject to each regime's distinct conditions, which makes one of these the usual choice for a startup that intends to claim the holiday. A registered partnership firm or a cooperative society may obtain recognition and the non-tax benefits, but does not satisfy the Section 80-IAC [ITA 2025: s. 140] entity limb, and a sole proprietorship is not eligible for recognition. We align the entity to the specific incentives you intend to use before incorporation, so the structure does not have to be unwound later.
Yes. An Employer of Record is a locally incorporated company that legally employs staff on your behalf and handles their payroll, provident fund and employees' state insurance contributions, tax withholding, and labour-law compliance, while you direct their day-to-day work. It lets a foreign company build a team in India quickly without first setting up its own entity. It differs from a professional employer organisation, which supports payroll but needs you to already have an Indian entity. We advise on the arrangement and the employment terms.
The Employer of Record route suits early, exploratory hiring, but it has limits. The Startup India incentives, including DPIIT recognition and the 80-IAC [ITA 2025: s. 140] holiday, require the startup to have its own India-incorporated entity, so a team held only through an Employer of Record cannot itself access them. As the team grows, or the startup wants to claim those benefits, raise local investment, or own assets and contracts directly, incorporation becomes the better base. We plan the transition so the team and its records move across cleanly.