Startup India certification provides significant tax benefits and easier compliance. Learn how to get certified and maximize the benefits available to recognized startups.
Eligibility Criteria
Your startup must be less than 10 years old and incorporated after April 2016. Annual turnover must not exceed Rs. 100 crores in any year. The business should be working towards innovation, development, or deployment of new products.
Only Private Limited Companies, LLPs, or Partnerships qualify. Sole proprietorships and HUFs cannot get startup recognition. The business should not have been formed by splitting an existing business.
Application Process
Register at startupindia.gov.in with your business details. Upload a brief description of the innovation and its potential. Self-certify that you meet all eligibility criteria.
The DPIPT processes applications within 5 working days. Upon approval, receive a recognition number and certificate. This certificate enables access to all Startup India benefits.
Tax Benefits
Section 80-IAC provides 100% deduction on profits for 3 consecutive years out of 10 years. This applies to businesses incorporated after April 2016. The benefit is available for 3 assessment years.
Angel tax exemption under Section 56(2)(viib) saves hassle during funding rounds. Investors don't have to pay angel tax on investment in recognized startups. This simplifies the fundraising process.
Other Benefits
Self-certification for 6 labor laws and 3 environmental laws reduces compliance burden. Patent registration rebate of 80% makes IP protection affordable. Faster exit window allows closing business within 90 days.
Access to Fund of Funds with Rs. 10,000 crore corpus for startup investment. Government buyers can procure from startups without tedious tender processes. State governments offer additional benefits on top of central schemes.
