DPIIT (Department for Promotion of Industry and Internal Trade) recognition under the Startup India initiative provides significant tax and compliance benefits. Here is everything a founder needs to know in 2025.
Eligibility Criteria
To qualify as a Startup under Startup India: the entity must be incorporated as a Private Limited Company, LLP, or Registered Partnership Firm. It must be less than 10 years old from incorporation. Annual turnover must not have exceeded ₹100 crore in any year. The entity must be working towards innovation or significant employment generation.
Key Benefits of DPIIT Recognition
Tax Holiday: 3 consecutive years of income tax exemption out of the first 10 years (Section 80-IAC). Requires separate DPIIT certification. Angel Tax Exemption: Investments up to ₹25 crore from DPIIT-recognised startups are exempt from Section 56(2)(viib) angel tax. IPR Fast-Track: 80% rebate on patent filing fees, fast-track examination, and free IP facilitation. Government Procurement: No prior experience or turnover criteria in government tenders.
📌 Need Help With This?
Our CA experts can help you with all aspects covered in this article. Get a free consultation today.