Startup India

Tax Incentive & FundingCentral

About This Scheme

Startup India is the flagship initiative of the Government of India to build a strong ecosystem for nurturing innovation and startups. Recognised startups get tax exemptions for 3 consecutive years, self-certification compliance across labour and environmental laws, fast-tracked patent applications with 80 percent fee rebate, and access to a Fund of Funds worth 10,000 crore rupees managed by SIDBI. Over 2.2 lakh startups were DPIIT-recognised by March 2026, with the ecosystem producing over 100 unicorns. The programme suits first-time founders building innovative products and services who meet the incorporation and turnover thresholds.

Ministry: Department for Promotion of Industry and Internal Trade (DPIIT)

Maximum Funding

Fund of Funds: up to ₹10,000 Crore (via SIDBI)

Helpline

1800-115-565

Eligibility

Entity incorporated as Private Limited Company, Partnership Firm, or LLP; turnover not exceeding ₹200 crore in any financial year (₹300 crore and a 20 year window for Deep Tech startups, under the DPIIT notification of 4 February 2026, which also admits cooperative societies). The 80-IAC tax holiday keeps a separate ₹100 crore turnover cap; entity is working towards innovation or improvement of products/services; not formed by splitting or reconstruction of existing business.

Key Benefits

  • Income tax exemption for 3 consecutive years out of first 10 years (Section 80-IAC)
  • Angel tax was abolished for all companies from April 2025, so share premium is no longer taxed for anyone
  • Self-certification under 6 labour laws and 3 environmental laws
  • Fast-tracked patent examination at 80% rebate in fees
  • Access to Fund of Funds (₹10,000 crore via SIDBI)
  • Easy winding up of company within 90 days under Insolvency & Bankruptcy Code
  • Government e-Marketplace (GeM) listing without prior experience/turnover

Application Process

  1. 1Visit startupindia.gov.in and create an account
  2. 2Fill the recognition application form with business details
  3. 3Upload Certificate of Incorporation/Registration and a brief description
  4. 4Submit the application. Recognition is typically granted within 2-3 working days
  5. 5Apply separately for tax exemption through the Inter-Ministerial Board

Documents Required

  • Certificate of Incorporation / Registration
  • PAN of the entity
  • Brief description of innovation / business model
  • Authorization letter (if applying through authorized representative)

Official Links

Related Schemes

Disclaimer

This information is sourced from publicly available government portals and official scheme documents. EduMetrics is not a government body and does not guarantee the accuracy or current availability of any scheme. Please verify eligibility and details on the official portal before applying.