Startup India registration, formally DPIIT recognition, gives eligible startups a 100% income tax deduction on profits for three consecutive years (companies and LLPs with Inter-Ministerial Board certification), an 80% rebate on patent filing fees, a 50% rebate on trademark filing fees, access to the Government e-Marketplace (GeM), relaxed public procurement norms and a 90-day fast-track exit.
Recognition is free and is applied for on the Startup India portal. An entity qualifies if it is a private limited company, LLP, registered partnership or cooperative society, is under 10 years old, has turnover within ₹200 crore (₹300 crore for Deep Tech Startups) and works on innovation or a scalable business model. More than 2 lakh startups had been recognised by DPIIT as of December 2025.
What Is a Startup in India? (2026 Definition)
A startup is an entity that works on an innovative product, service or process, or on a scalable business model with strong potential for jobs or wealth creation. Startups often run on thin margins and heavy operating costs in the early years, which is why the government offers financial relief during incubation.
The definition itself was rewritten on 4 February 2026 through DPIIT Notification G.S.R. 108(E), which replaced the 2019 framework. Here is how the two compare.
Criteria | Earlier framework (2019) | Current framework (Feb 2026) |
Eligible entities | Private limited company, LLP, registered partnership firm | Same, plus multi-state and state/UT cooperative societies |
Recognition period | Up to 10 years from incorporation | Up to 10 years (20 years for Deep Tech Startups) |
Turnover limit | ₹100 crore in any financial year | ₹200 crore (₹300 crore for Deep Tech Startups) |
Deep Tech category | Not available | Introduced |
The basic conditions that continue to apply:
- The entity works on innovation, product or service improvement, or a scalable model.
- It was not formed by splitting up or reconstructing an existing business.
- Turnover has not crossed the applicable limit in any financial year since incorporation.
- Recognition ends once the entity crosses the age or turnover limit.
Reading Suggestion: Eligibility Criteria for Startup India Registration
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Latest Startup India Updates
These are the latest rule changes and scheme updates founders should know about.
Update | What it means for your startup |
New DPIIT definition (4 Feb 2026) | Turnover cap doubled to ₹200 crore, Deep Tech category with a 20-year window, cooperatives now eligible |
Tax holiday window extended (Finance Act 2025) | Startups incorporated before 1 April 2030 can claim the deduction |
Income-tax Act, 2025 (from 1 April 2026) | The old Section 80-IAC deduction now sits in Section 140 |
Higher turnover cap for the tax holiday (Finance Act 2026) | Cap raised from ₹100 crore to ₹300 crore from tax year 2026-27 |
Angel tax abolished | Investment received above fair market value is no longer taxed under Section 56(2)(viib) from AY 2025-26 |
Fund of Funds 2.0 | A fresh ₹10,000 crore corpus focused on deep tech, manufacturing and early-growth startups |
Credit Guarantee Scheme for Startups expanded | Guarantee cover per borrower raised from ₹10 crore to ₹20 crore |
SIPP scheme lapsed | Government-paid IP facilitator support was scheduled to end on 31 March 2026 |
What Are The Benefits of Registering Your Business as a Startup in India
#1. Tax Exemption For Registered Startups in India
DPIIT-recognised startups with an Inter-Ministerial Board (IMB) certificate can claim a 100% profit deduction for any three consecutive years in their first ten. The benefit was Section 80-IAC until FY 2025-26 and is Section 140 of the Income-tax Act, 2025 from tax year 2026-27.
Conditions:
- Private limited company or LLP only
- Incorporated on or after 1 April 2016 and before 1 April 2030
- Turnover up to ₹300 crore in the claim year from tax year 2026-27 (earlier ₹100 crore)
- IMB certificate obtained separately from DPIIT recognition
Minimum Alternate Tax (MAT) can still apply during the holiday. Angel tax has also been abolished, which eases fundraising.
#2. Access To The Government Marketplace By Registering Startup In India
Government e-Marketplace (GeM) is a web-based portal or is one of the prominent markets for Government Departments to procure services and products. DPIIT Recognized & Registered Startups are allowed to make utilization of such platforms so that they can sell their offerings to government-based entities. This opens a door of opportunities for startups looking to work on trial orders with the Government.
Government e-Marketplace (GeM) is the online portal through which government departments and public sector bodies buy goods and services. DPIIT-recognised startups can register on it and sell directly to these buyers.
For a young company, this means:
- A new customer segment that would otherwise be hard to reach
- A chance to win early trial orders from government entities
- A credible reference when pitching to larger clients later
#3. Fast Track Exit Option/ Winding -Up In Startup India Registration
Not every startup works out, and the government recognises that. Startups are treated as fast-track firms under the Ministry of Corporate Affairs framework, which allows an eligible startup to wind up its operations within 90 days of applying. Conditions such as the absence of pending liabilities apply, so a compliance review before applying is sensible.
#4. Relaxation in Public Procurement Regulations
Notably, ordinarily whenever a tender is floated by a Government entity or Public Sector is undertaking, the eligibility criteria only call for entities that have prior experience or prior turnover. This restricts startups from participating in the bidding of tenders.
#5. Intellectual Property Rights in Startup India Registration
For the promotion of the startups and recognition of the business models, Startup India provides new startups with a few intellectual property rights benefits, which are stated as follows:
- The patent application applied by a startup is fast-tracked for examination.
- Entitlement of rebate up to 80% as compared to other entities in the process of filing patents.
- Entitlement of a rebate of 50% in the trademark filing process.
- The Central Government bears all the costs for startups.
IP benefit | Startup advantage | Fee for recognised startups |
Patent filing | 80% lower fee | ₹1,600 (e-filing) |
Trademark filing | 50% lower fee | ₹4,500 per class |
Patent examination | Expedited examination available | ₹8,000 (expedited request) |
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Our Take: Recognition Is a Door, Not a Destination
In our view, the tax holiday is rarely the benefit that matters first. It applies only to profits, the three years must be consecutive, and the separate IMB approval and MAT can narrow the saving. IP rebates, GeM access and funding schemes usually pay off earlier, and the higher 2026 turnover caps show that recognised startups are expected to scale.
Timing matters too. The recognition period runs from incorporation, not from the date of recognition, so waiting gains nothing. The order we suggest:
- Apply for DPIIT recognition soon after incorporation.
- File patents and trademarks at startup rates before launch.
- Register on GeM once you have something ready to sell to government buyers.
- Plan the tax holiday and IMB application around the years when profits are expected.
Don't Skip the Benefits Provided to Startup
Since you are aware of the major benefits of a business registering as a Startup in India. You can check with your compliance team for eligibility & apply for a Startup India Programme today. Click Here to Register for Startup India Programme.
It is advisable to take expert guidance before applying for registration because sometimes even though you have Unique Selling Proportions (USPs), the application for Startup Registration can be denied. So, it is better to present it well. Go ahead with experts!!!
