If you’re contemplating starting a startup or have already initiated one, being a part of Startup India might have crossed your mind. However, obtaining DPIIT recognition is essential for this. Under this, registering your startup with the Department for Promotion of Industry and Internal Trade (DPIIT) becomes necessary. It’s noteworthy that not every startup can be registered under DPIIT. There are certain criteria that a startup must fulfill to get registered.
Know the Eligibility Criteria
To register your startup under DPIIT, it’s imperative that your business aligns with the criteria of being a “startup” under Startup India.
- Company’s AgeFor a business to be considered a startup under Startup India, its age should not exceed 10 years.
- Type of CompanyOnly Private Limited Companies, Registered Partnership Firms, or Limited Liability Partnerships qualify for registration under Startup India.
- Annual TurnoverA startup’s business turnover should not exceed Rs. 100 crore in any financial year.
- Original EntityOne of the eligibility criteria for availing benefits under Startup India is that your business should be entirely original, not merely a part detached from an existing business.
- Innovative and ScalableYour business should be innovative, either in product/service development or in enhancing existing offerings. Additionally, it should have the potential for rapid scalability, generating substantial wealth and employment.
Benefits of DPIIT Recognition
The foremost benefit for startups registered under DPIIT through Startup India is a tax exemption for the initial three consecutive years within their first ten years. Additionally, such startups receive exemptions from numerous formalities and regulations, making their business operations smoother. Consequently, the desire to be registered under this scheme is high among startups. As per the Startup India website, approximately 1.15 lakh startups are registered under DPIIT currently.