Under the Startup India initiative of Govt. of India, eligible companies can get recognized as Startups by Department for Promotion of Industry and Internal Trade (DPIIT), in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. Learn more about eligibility and benefits below.
Objective of Startup India
To reduce the regulatory burden on Startups, thereby allowing them to focus on their core business and keep compliance costs low.
- Startups shall be allowed to be self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
- In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
- In the case of environment laws, startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases
Tax Exemption Under 80IAC:
Eligible startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.
- The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
- The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
- The Payment of Gratuity Act, 1972
- The Contract Labour (Regulation and Abolition) Act, 1970
- The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- The Employees’ State Insurance Act, 1948
- The Water (Prevention & Control of Pollution) Act, 1974
- The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
- The Air (Prevention & Control of Pollution) Act, 1981
Section 56 Exemption:
- Exemption under Section 56(2)(VIIB) of Income Tax Act
- Investments into eligible startups by listed companies with a net worth of more than INR 100 Crore or turnover more than INR 250 Crore shall be exempt under Section 56 (2) VIIB of Income Tax Act
- Investments into eligible Startups by Accredited Investors, Non-Residents, AIFs (Category I), & listed companies with a net worth more than 100 crores or turnover more than INR 250 Crore, shall be exempt under Section 56(2)(VIIB) of Income Tax Act
- Consideration of shares received by eligible startups shall be exempt upto an aggregate limit of INR 25 Crore
Eligibility to be Recognized
Period of existence and operations should not be exceeding 10 years from the Date of Incorporation
Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership
Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation
Entity should not have been formed by splitting up or reconstructing an already existing business
Innovative & Scalable
Should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment
How to Get Startup-India Recognized?
We at Tech4Planet provide best consultation services for getting startup India recognized at the most affordable rates. Reach us at [email protected] for getting your company registered and recognized by Startup-India.
1. MSME Registration: INR 1000 + GST
2. Starup India Registration: INR 2000 + GST
3. MSME+Startup India Combo: INR 2500 +GST