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DPIIT Recognition for Startups Under the Startup India

The recognition received under the Startup India Scheme by the Department for Promotion of Industry and Internal Trade (DPIIT) gives a startup plenty of benefits. Among other things, this includes tax holidays for three years and intellectual property (IP) filing concessions. All these can provide great help in the development and finance of a new business.

Overview of DPIIT Recognition Under Startup India

The Department for Promotion of Industry and Internal Trade is offering a recognition program called Startup India Recognition, which provides support from the government as well as incentives to startups, facilitating innovation and growth among new business ventures in the country. These recognitions ensure that the required resources and fund opportunities are there, and this also simplifies compliance with regulatory requirements. So, this project will help the entrepreneurs to thrive and contribute their share to the economy.

How to Register Your Startup for DPIIT Recognition under Startup India Today ?

Registration at Startup India from the Department for Promotion of Industry and Internal Trade (DPIIT) benefits startups in the following ways. The government provides seed funding and certain sections of the Income Tax Act exempt taxes. Additionally, there is a 50% discount on trademark registration. It assists start-up in easily accessing these benefits.

DPIIT Registration: This comes with the support of recognized startups to make the most of the Startup India Scheme. Such support helps in minimizing the financial and compliance burdens faced by the startups in their initial phases. Recognition under this scheme allows these startups to benefit from the government’s incentives through Startup India. This initiative was started in January 2016, to develop a robust startup ecosystem with innovative ideas.

Steps to Get DPIIT Recognition for Your Startup

Step 1: Incorporate your Business

You are first required to register as a Private Limited Company, Partnership, or Limited Liability Partnership. You should complete the process of registering a business by applying for it and obtaining either your Certificate of Incorporation or your Partnership registration.

You can establish a Private Limited Company or a Limited Liability Partnership by applying to the Registrar of Companies in your location. To incorporate a Partnership Firm, you would need to file an application with the Registrar of Firms in the place where you are located. Ensure that all the documents and fees are included with your registration application.

Step 2: Register with Startup India

Registering a business as a startup is easy, and it can be done through an online application process. Click on the ‘Register‘ button on the Startup India website.

Fill in the required details- name, email, mobile number, and password- and then click on the ‘Register’ button. Now, click on the ‘Submit’ button to create your profile on Startup India.

After setting up your profile, you can apply for various acceleration and incubator/mentorship programs. In addition, you will be given access to learning resources, funding options, government schemes, and market opportunities.

Step 3: Get DPIIT Recognition

After creating your profile on Startup India, you are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition affords the startup multiple benefits that come with such quality intellectual property services, easier public procurement, the ability to self-certify in labor and environmental laws, a more streamlined winding process of the companies, Fund of Funds, and the tax exemption up to three successive years while allowing tax exemption in investments on capital exceeding its fair market value.

  • To apply for DPIIT Recognition, log in to your Startup India account. 
  • Click on the ‘Apply for DPIIT Recognition‘ option under the ‘Recognition‘ tab.
  • Proceed to apply on the next page: Click on ‘Apply Now.’ You will be redirected to the National Single Window System website. 
  • If you are a company or an LLP, register on the NSWS website. Then, select the form ‘Registration as a Startup’ and fill up the ‘Startup Recognition Form’ to get DPIIT recognition.

Step 4: Recognition Application

You have to fill in the ‘Startup Recognition Form’ by providing information regarding the name of the entity, full office address, details about the authorized representative, and details about the directors or partners. Add your details related to startup activities and fill up the self-certification section.

Click on the plus sign placed on the right side of the form for every section.

Upon completion of all parts of the ‘Startup Recognition Form’, read through and agree with the terms and conditions, and then click ‘Submit’.

Step 5: Documents for Registration Under the Startup India Registration Program

  • Incorporation or registration certificate for your startup  
  • Proof of any funding received  
  • An authorization letter from an authorized representative of the company, or a partnership firm or a Limited Liability Partnership (LLP).  
  • Proof of concept, such as a pitch deck, website link, or video (for startups in the validation, early traction, or scaling stage)  
  • Details of any patents or trademarks  
  • List of any awards or recognition certificates  
  • PAN number  

Step 6: Recognition Number

When you apply, you will receive a recognition number for your startup. After that your documents will be reviewed, which usually takes about 2 days after you submit your information online; you will get a certificate of recognition.

Benefits of Startup India DPIIT Recognition in India

The Startup India Scheme has come with a long list of its major benefits including tax exemptions, quick statutory clearances, access to funding, and credit facilities. It will also get fast FDI approval and concessions on Intellectual Property Protection if recognised as a Start-up. For this purpose, they can register here under the Startup India Scheme easily, and guide them through every step of registration with utmost care, understanding how much importance all these advantages mean for your Start-up.

  • Funding: Many startups struggle to get funding. Entrepreneurs often find it hard to attract investors because they lack experience, security, or cash flow. Additionally, since many startups fail, this high risk makes investors hesitant to invest.

The Government has created a program called the Startup India Seed Fund Scheme (SISFS) for the benefit of startups. The program was launched on January 21, 2021, with a budget of Rs. 945 crore to be utilized over the next four years in providing financial support to the startups.

  • Self-Certification  

Self Certification Under Employment and Labour Laws: Start-ups can certify their compliance with labour and environmental laws to lower their costs. Self-certification is one method of reducing the regulatory burden, which allows them to focus on their core business activities. Startups self-certify their compliance with 6 labour laws and 3 environmental laws three to five years after their incorporation.

Business houses engaged in 36 white category industries that are given on the website of the Central Pollution Control Board need no clearance under three environmental laws for 3 years.

  • Tax Exemptions  

Startups can enjoy Income Tax Exemption for three financial years under a specific section. Angel investors also receive capital gains tax exemptions. However, they should be certified by the Inter-Ministerial Board. If the startups have been created after April 1, 2016, then they can benefit from this tax exemption.

  • IPR Rebates 

Startups can protect their Intellectual Property affordably, with an 80% rebate on Patent Filing and a 50% rebate on Trademark Filing.

  • Transparent Operations & Easy Closure  

Documents for incubators are publicly accessible. Startups can quickly wind up their operations within 90 days under the Insolvency and Bankruptcy Code.

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FAQ’s

1. What is the full form of DPIIT?

DPIIT is the short form of The Department of Industrial Policy, Promotion, and Internal Trade. It is responsible for issuing a Startup India Recognition Certificate to eligible startups.

2. How to get DPIIT Registration for Startups?

Getting DPIIT registration for Startups is extremely quick, easy, and affordable with Setindiabiz. Simply subscribe to our all-inclusive package of DPIIT recognition to avail of our services. For more information send your enquiry to our startup advisors and consultants. We will respond to you as soon as possible.

3. What is a DIPP certificate?

The DIPP Certificate is the Certificate a business receives after being recognised as a “Startup” by the DPIIT. Based on the DIPP Certificate, your business can avail of all benefits of the Startup India Scheme. It also contains a recognition number and the date of recognition as well.

4. Is Startup India Registration Online?

Yes. The Startup India Registration Process is completely online. The application and documents can be submitted on the Startup India Portal.

5. What is the time taken to register for the Startup India Scheme?

DPIIT Recognition for Startups is usually a quick process and hardly takes 1-2 days to complete. However, the duration may get extended depending on the accuracy of your application, documents, and the workload at the Department.