What is a Recognised Startup under the Startup India scheme?
A Recognised Startup under the Startup India scheme refers to a business entity that has been officially acknowledged by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, as meeting the prescribed criteria under the Startup India initiative. This recognition is designed to promote innovation, encourage entrepreneurship, generate employment, and support economic growth by providing startups with a range of benefits.
To qualify for DPIIT recognition, an entity must be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP). The startup must not be older than 10 years from the date of its incorporation or registration and should not have exceeded an annual turnover of INR 100 crores in any financial year since its inception. Additionally, the entity must be working towards innovation, development, or improvement of a product, process, or service, or have a scalable business model with a high potential for employment generation or wealth creation. Importantly, the entity should not be formed by splitting up or reconstructing an existing business.
Startups that receive DPIIT recognition are eligible for numerous benefits. These include tax exemptions, such as a three-year income tax holiday under Section 80 IAC and exemption from angel tax under Section 56(2)(viib). Recognised startups also benefit from self-certification for compliance under six labour laws and three environmental laws. Moreover, they are entitled to faster processing of Intellectual Property Rights (IPR) applications, including an 80% rebate on patent filing fees and expedited examination procedures.
Public procurement advantages are also offered, such as exemptions from prior experience or turnover criteria when applying for government tenders and listing opportunities on the Government e-Marketplace (GeM). In addition, recognised startups have access to government-backed funding schemes like the Startup India Seed Fund Scheme (SISFS), which offers up to ₹20 lakh as a proof-of-concept grant and up to ₹50 lakh through convertible debentures or debt.
The application process for DPIIT recognition begins with registering on the Startup India portal. The applicant must fill out the required form with entity details, describe the innovative nature and scalability of the business, and upload supporting documents such as the Certificate of Incorporation and PAN. A concise write-up explaining how the startup solves a real-world problem is also required. Once approved, the entity receives a Certificate of Recognition from DPIIT.
Dashboard Description
This dashboard presents the growth story of the Indian startup ecosystem through a multidimensional analysis. It explores key aspects such as gender equality, industry-wise trends, and regional distribution. Additionally, it highlights state-wise employment generation by startups and identifies the changemaker industries driving innovation and impact across the country.
Pankaj Chowdhury is a former Research Assistant at the International Economic Association. He holds a Master’s degree in Demography & Biostatistics from the International Institute for Population Sciences and a Bachelor’s degree in Statistics from Visva-Bharati University. His primary research interests focus on exploring new dimensions of computational social science and digital demography.
This article is posted by Sahil Shekh, Editor-in-Chief at 360 Analytika.
