SubsidyDepartment of Electronics, Information Technology, Biotechnology and Science & Technology (Department of e-IT, Bt and S&T), Government of KarnatakaVerified 21 May 2026Official source

Karnataka IT Policy 2025–30 — Office Lease & Employment Incentives

The Karnataka IT Policy 2025–30 incentivizes IT and ITeS businesses to establish and expand operations in Tier-II and Tier-III cities by offering lease, employment, and utility incentives. It includes rent reimbursements, recruitment assistance, and utility cost waivers, aimed at promoting regional development beyond Bengaluru.

Maximum amount
₹2.0Cr
Typical payout
₹15.0L
Processing time
8–24 weeks
Application window
Open year-round, claims by September 30th of the following fiscal year.

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Eligibility criteria

Company type
Private Limited, LLP
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
Karnataka
Sectors
saas, ai, fintech, healthtech, edtech, iot, deep_tech, bpo, ites

Documents required

1
KITS Registration Certificate
Company registration document by Karnataka Innovation & Technology Society, mandatory for all applicants.
Tip: Ensure registration is up-to-date and corresponds to the specific policy period.
2
Certificate of Incorporation (MoA/AoA)
Official incorporation certificate including Memorandum and Articles of Association, mandatory for application.
Tip: Verify that this document is current and correctly filed with relevant registration authorities.
3
Karnataka Shops and Commercial Establishment Act registration
Proof of registration under the Karnataka Shops and Commercial Establishment Act, necessary for compliance.
Tip: Maintain a copy of your valid registration certificate for legal compliance.
4
Registered Lease/Rental Agreement
Legal agreement for leased or rented office space, required for lease reimbursement claims.
Tip: Ensure that the agreement is officially registered and up-to-date.
5
Registered Rent Receipts
Receipts for rent paid, obtained from the landlord, required to support lease reimbursement claims.
Tip: Collect and retain receipts monthly to ensure verification and reconciliation with transactions.
6
Bank Account Statements
Statements reflecting rental/lease payments, essential to substantiate financial transactions.
Tip: Organize bank statements chronologically to match rent payments.
7
Building Completion/Occupancy Certificates
Certification that the building is ready for occupancy, often required for leased premises.
Tip: Obtain this from the building authority to confirm that the premises are compliant with regional standards.
8
Employee Muster Rolls
Official employee attendance records, mandatory for employment incentive proof.
Tip: Ensure data accuracy by maintaining detailed daily records.
9
Certified Payroll Sheets
Payroll records certified by an authorized body, required to justify employment expenses.
Tip: Have payroll sheets verified by HR and your accounting department regularly.
10
PF/ESI Contribution Receipts/Challans
Proof of provident fund and employee state insurance contributions for claim verification.
Tip: Keep these documents accessible for quick verification.
11
Local Domicile Certificates
Proof of employee residency for regional hiring claims, required for specific incentives.
Tip: Collect from employees at the beginning of their tenure.
12
Notarized Affidavit on ₹200 Stamp Paper
Legally binding statement affirming compliance with policy conditions, notarization mandatory.
Tip: Engage a legal advisor to draft this according to current legal stipulations.
13
Seat Allocation Certificates
Document for co-working spaces indicating the number of seats, required for leasing incentives.
Tip: Obtain from your co-working space provider for accurate seat recording.
14
Monthly Consolidated Invoices from Co-working Operator
Invoices from the shared workspace provider, necessary to support space lease claims.
Tip: Consolidate and organize these invoices monthly for ease of submission.
15
Moving/Transportation Bills
Proof of moving expenses for relocation support claims, required documents.
Tip: Keep original bills and invoices to validate transportation expenses.
16
Original Boarding Passes/Travel Invoices
Travel-related proofs needed for claiming relocation costs.
Tip: Retain all original travel documents; these confirm the travel dates and routes.
17
Academic Qualification Proof of Interns
Verification of educational credentials for interns, necessary for internship stipends.
Tip: Verify credentials at the intern's start; retain copies for application purposes.
18
Internship Offer/Completion Letters
Documents confirming internship offers and completion, required for stipend claims.
Tip: Issue and retain these documents formally through HR.
19
Bank Disbursement Records for Stipends
Evidence of stipend payments made to interns, needed to claim stipends.
Tip: Align payment records with bank statements monthly.
20
Recent Electricity Bills
Bills for electricity, required for claiming duty waiver outside Bengaluru.
Tip: Ensure bills are comprehensive and align with consumption records.
21
Local Municipal Property Tax Assessment Books
Property tax documentation required for reimbursement of property tax incentives.
Tip: Collect regular assessments from local municipalities for documentation.

How to apply for KA IT Policy 2025

1
Visit the official portal to create an enterprise account and secure a KITS Registration ID.Open portal
2
Log into the dashboard and access the Karnataka IT Policy 2025–30 Incentives Module.Open portal
3
Fill the Common Application Form with detailed company information including location and investment details.
4
Scan and upload the required lease, payroll, and financial documents.
5
Submit the application online after paying the processing fee.

Frequently asked questions

Who is eligible for KA IT Policy 2025?

KA IT Policy 2025 is available to Private Limited, LLP companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Karnataka.

How much funding does KA IT Policy 2025 provide?

KA IT Policy 2025 provides up to ₹2.0Cr. Most applicants receive around ₹15.0L.

How long does KA IT Policy 2025 approval take?

The typical processing time from submission to disbursement is 8–24 weeks.

Is KA IT Policy 2025 currently accepting applications?

Yes, KA IT Policy 2025 is currently active and accepting applications. Application window: Open year-round, claims by September 30th of the following fiscal year..

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Information is based on publicly available scheme guidelines. Last verified 21 May 2026. Always verify with official sources before applying.