DPIIT Recognition

DPIIT recognition is the official certification that designates a company as a "startup" under the Startup India programme, issued by the Department for Promotion of Industry and Internal Trade.

Who it applies to

Any private limited company, LLP, or registered partnership firm that:

• Has been incorporated for less than 10 years
• Has not exceeded ₹100 crore in annual turnover in any financial year since incorporation
• Is developing or commercialising a new product, process, or service with an element of innovation or scalability

Sole proprietorships and one-person companies are ineligible.

What you get

Recognition unlocks several benefits directly, with no further approval required:

• Labour law self-certification — certify compliance with 6 central labour laws for up to 5 years without inspection risk, unless a complaint is filed
• Patent fee rebate — 80% reduction in Indian Patent Office filing fees, plus fast-track examination within 30 days of the examination request
• GeM EMD exemption — no Earnest Money Deposit when bidding on Government e-Marketplace tenders, freeing up working capital
• ESOP tax deferral — defer TDS on ESOP perquisites under Section 192(2BC) to the earliest of employee exit, 5 years from exercise, or share sale
• Section 80-IAC eligibility — recognition is the prerequisite for the 3-year profit tax holiday, though a separate IMB approval is still required

What most founders miss

Recognition is not the same as the Section 80-IAC tax exemption. DPIIT recognition is a near-automatic, self-certified process. The 80-IAC profit holiday requires a separate Inter-Ministerial Board application, and the IMB actively evaluates your business for genuine innovation — it can be declined. Founders who receive their recognition certificate and assume they owe zero income tax are wrong.

The 10-year eligibility window is measured from your incorporation date, not from the date you apply for recognition. Apply early.

See also

• Section 80-IAC — the 3-year profit tax holiday that requires separate IMB approval
• Startup India Seed Fund (SISFS) — grant funding open to DPIIT-recognised startups
• What DPIIT recognition actually unlocks — full breakdown of every benefit