Government schemes
Startup India Complete Guide 2026
Everything Indian startup founders need to know about Startup India — DPIIT recognition, tax exemptions (Section 80-IAC), angel tax relief, Seed Fund Scheme, government tenders, IPR rebates. Updated for 2026.
DPIIT Recognition
Get DPIIT recognition.
DPIIT (Department for Promotion of Industry and Internal Trade) recognises eligible startups under Startup India. Free, quick, and unlocks multiple benefits.
- Eligibility: incorporated < 10 years; turnover < ₹100cr in any FY; entity is Pvt Ltd / LLP / Partnership
- Application: online at startupindia.gov.in (free)
- Documents: incorporation certificate, brief about business, intellectual property if any
- Processing: 2-7 days
- Validity: until 10 years from incorporation OR ₹100cr turnover (whichever earlier)
Section 80-IAC tax exemption
Income tax exemption.
Eligible DPIIT-recognised startups get 100% income tax exemption on profits for 3 consecutive years (out of first 10 years).
- Eligibility: DPIIT-recognised + Inter-Ministerial Board approval
- Exemption: 100% on profits for 3 of first 10 FYs
- Choice of years: founder selects which 3 years
- Apply: online via Income Tax Department
- Conditions: must be Pvt Ltd or LLP; turnover < ₹100cr in any of 3 FYs claimed
Angel tax exemption
Section 56(2)(viib) relief.
Most painful tax for Indian startups — eliminated for DPIIT-recognised startups under specific conditions.
- Section 56(2)(viib): if share premium > FMV, excess taxed as 'income from other sources'
- DPIIT-recognised startups exempt if conditions met
- Conditions: paid-up capital + share premium ≤ ₹25cr (post-issue); investor disclosure
Startup India Seed Fund Scheme
Government seed funding.
Direct seed funding scheme by DPIIT for early-stage startups.
- Total corpus: ₹945cr deployed across 300+ incubators
- Per-startup: up to ₹20L grant for proof-of-concept; up to ₹50L convertible debenture for market entry
- Eligibility: DPIIT-recognised; incorporated < 2 years
- Apply via DPIIT-listed incubators
IPR benefits
IPR fast-track.
DPIIT-recognised startups get patent fee rebates and expedited examination.
- 80% rebate on patent filing fees
- 50% rebate on trademark filing
- Expedited patent examination
- Free assistance from empanelled facilitators
Public procurement
Government contracts.
DPIIT-recognised startups get easier access to government tenders.
- Exemption from prior-experience and prior-turnover criteria
- Listed on GeM (Government e-Marketplace)
- Self-certification under labour and environmental laws