Startup India registration, formally recognition by the Department for Promotion of Industry and Internal Trade (DPIIT), is a free government certificate that identifies an entity as a startup and unlocks benefits such as tax incentives, self-certification and easier public procurement. A new notification dated February 2026 has replaced the 2019 definition and raised the turnover and age limits. This page explains who qualifies, how to apply on the National Single Window System (NSWS), what the tax benefit looks like under the Income-tax Act, 2025 and where applicants go wrong.
What is Startup India registration?
Startup India is a Government of India initiative, and DPIIT recognition is the formal status under it. Unlike company or LLP registration, it does not create a legal entity. It is a recognition given to an entity that already exists as a private limited company, a partnership firm, an LLP or, under the new notification, a cooperative society.
The definition changed in February 2026. Notification G.S.R. 108(E) superseded the 2019 notification G.S.R. 127(E). An entity can now be recognised as a startup for up to 10 years from incorporation, as long as its turnover has not crossed ₹200 crore in any financial year since incorporation. A deep tech startup gets up to 20 years and a ₹300 crore turnover limit. The entity must be working towards innovation, development or improvement of products, processes or services, or running a scalable business model with high potential of employment generation or wealth creation. An entity formed by splitting up or reconstructing an existing business is not eligible.
Recognition is not the same as the income tax holiday. The tax benefit used to come from section 80-IAC of the Income-tax Act, 1961. Under the Income-tax Act, 2025, which applies from 1 April 2026, the successor provision is section 140. It offers a 100% deduction of profits for three consecutive tax years chosen out of ten, for a company or LLP incorporated on or after 1 April 2016 and before 1 April 2030, whose turnover does not exceed ₹100 crore in the relevant tax year and which holds a certificate from the Inter-Ministerial Board (IMB). DPIIT recognition is the starting point, but the tax holiday needs a separate IMB application.
Be careful with intermediaries. The Startup India recognition page itself warns that the Ministry has not authorised any agency to charge for the certificate. You can apply directly on NSWS, and a professional is useful for preparing a correct description of innovation, checking eligibility and sequencing other benefits, not for obtaining a paid 'registration'.
Who should apply for DPIIT recognition?
It is optional, but worth considering if your entity matches the definition and plans to use any of the benefits. Typical applicants include:
- Technology, software, SaaS and app-based businesses that are developing a product or platform
- Deep tech ventures in areas such as AI, robotics, biotech, space and advanced manufacturing, which qualify for longer limits
- Founders planning to apply for the income tax exemption, government grants or seed funding schemes that ask for the DPIIT certificate
- Entities that want exemptions or relaxations in public procurement for startups
- Partnership firms and LLPs that are innovating and want startup status
- Cooperative societies that now fall within the eligible entity list under the 2026 notification
- Early-stage private limited companies preparing for investor due diligence
Benefits of Startup India (DPIIT) Recognition
Income tax holiday route
Recognised companies and LLPs that meet the conditions and obtain an IMB certificate can claim a 100% profit deduction for three consecutive tax years out of ten under section 140 of the Income-tax Act, 2025.
Self-certification and compliance ease
Recognised startups have been offered self-certification under selected labour and environment laws and a simplified exit route. Check the current scheme text for the exact laws covered.
Intellectual property support
Programmes have offered faster examination and reduced fees for patents and trademarks for recognised startups. Confirm the current rebate on the IPR portal before filing.
Public procurement relaxations
Government buyers have relaxed prior experience and turnover requirements for recognised startups in many tenders, subject to quality conditions.
Access to funding and schemes
The certificate is often the entry ticket to government funds, incubators, grants and accelerator programmes that are restricted to recognised startups.
Eligibility under the 2026 definition
Check each condition before you apply. The portal flags ineligible applications and a wrong claim can lead to revocation.
- The entity is a private limited company, a partnership firm (registered), an LLP or a cooperative society
- Age: up to 10 years from the date of incorporation or registration (up to 20 years for a deep tech startup)
- Turnover: not more than ₹200 crore in any financial year since incorporation (₹300 crore for a deep tech startup)
- The entity is working on innovation, development or improvement of products, processes or services, or has a scalable business model with high potential for employment or wealth creation
- It is not formed by splitting up or reconstruction of an existing business
- It does not engage in prohibited investments such as real estate, luxury assets or speculative investments during the recognition period
- Information given in the application is true; false information can lead to revocation of recognition
Documents required
Entity documents
- Certificate of incorporation or registration (company, LLP) or registered partnership deed (firm)
- PAN of the entity
- Address proof of the registered office
- Details of directors or partners with PAN and contact information
Business and innovation documents
- Brief write-up on the business, problem solved, innovation and scalability
- Website link, app link, pitch deck or product video, if available
- Patents, trademarks, prototypes or other proof of innovation, where applicable
- Details of funding received, if any, and of the employees engaged
- For deep tech: supporting evidence that the work falls within the deep tech criteria in the notification
Access and authorisation
- NSWS login credentials of the authorised person
- Authority letter or board resolution for the person who applies
- Mobile number and email registered on NSWS
Step-by-step Startup India recognition process
Applications are made on the National Single Window System. Fields and screens may change, so follow the on-screen guidance.
Check eligibility against the 2026 definition
Confirm entity type, age, turnover and the innovation requirement. Decide if the entity qualifies as deep tech so that you apply under the correct category.
Prepare the innovation description
Write a clear, specific note on what is new in your product, process or model, and how it can scale. Generic statements are the commonest cause of clarification requests.
Register on NSWS
Create an account on nsws.gov.in and complete the user profile for the entity, using the authorised person's mobile number and email.
Select the startup registration approval
Go to Add Approvals, select Central Approvals and choose Registration as a Startup, then fill in entity, director or partner and business details.
Upload documents and submit
Upload incorporation proof and supporting material, declare that the information is true and submit. No fee is payable for the recognition certificate.
Respond to clarifications
DPIIT may ask for more detail on innovation or entity facts. Respond within the time given and keep replies precise.
Download the certificate
Once recognised, download the certificate with its recognition number. Keep it for tax, procurement and grant applications.
Plan the follow-on benefits
If you want the income tax holiday, prepare the separate application to the Inter-Ministerial Board; if you want IP or procurement benefits, apply on those portals with the recognition number.
Government fees
DPIIT charges nothing for recognition. Costs arise only if you take other services, such as a tax holiday application prepared by a professional or a patent filing.
| Item | Amount | Note |
|---|---|---|
| DPIIT recognition certificate (NSWS) | No government fee | The Startup India page states there is no fee for the recognition certificate |
Professional charges are quoted separately after reviewing your case. Government fees are paid directly to the authority. Beware of agents who present a free government certificate as a paid government fee.
How long does DPIIT recognition take?
DPIIT does not commit to a fixed period. A clean application with a clear innovation note is usually processed faster than one that needs several rounds of clarifications. Plan for a few weeks and avoid making commitments to investors or customers that depend on a specific date.
| Stage | Typical time |
|---|---|
| Eligibility check and document preparation | 2–5 working days |
| Application on NSWS | 1 working day |
| DPIIT review and clarifications | Varies; no fixed period |
| IMB tax holiday application (separate) | Separate process and timeline |
Validity & continuing conditions
Recognition is valid as long as the entity continues to meet the definition. Under the 2026 notification, that means up to 10 years from incorporation (20 years for deep tech) and turnover within ₹200 crore (₹300 crore for deep tech) in each financial year. The restrictions on prohibited investments, such as real estate, luxury assets and speculative investments, apply for the whole recognition period. DPIIT can revoke recognition if the application contained false information. Review each year whether you still qualify, especially before raising capital or claiming a benefit.
Compliance after recognition
- Keep annual filings with the ROC, the income tax department and GST in order; see ROC annual filing and income tax return filing
- Track age and turnover each year against the 10-year and ₹200 crore limits (20 years and ₹300 crore for deep tech)
- Avoid prohibited investments throughout the recognition period
- Apply to the Inter-Ministerial Board if you wish to claim the section 140 tax holiday, and keep the certificate with your tax records
- Update NSWS or the Startup India profile if the entity's details, name or address change
- Use the recognition number when claiming IP, procurement or scheme benefits
- Keep evidence of innovation and employment generation to answer any DPIIT query
Startup definition: 2019 notification vs 2026 notification
| Point | G.S.R. 127(E), 2019 (old) | G.S.R. 108(E), 2026 (new) |
|---|---|---|
| Age limit | Up to 10 years | Up to 10 years; up to 20 years for deep tech |
| Turnover limit | ₹100 crore | ₹200 crore; ₹300 crore for deep tech |
| Eligible entities | Private limited company, registered partnership firm, LLP | Also cooperative societies, including multi-State and State cooperatives |
| Prohibited investments | Limited restrictions | Restrictions on real estate, luxury and speculative investments for the whole recognition period |
| Revocation | For false information | For false information, expressly provided |
Common mistakes & rejection reasons
Vague innovation statement
Saying 'we are a technology company' without explaining what is new or scalable attracts clarifications or rejection. Describe the problem, your solution and why it is different.
Applying with an ineligible entity type
Proprietorships, trusts and unregistered partnerships do not qualify. Register the right entity first, such as a private limited company or LLP.
Business formed by splitting or reconstruction
Entities created by splitting up an existing business or reconstructing it are excluded. Disclose history honestly rather than hoping it will not be noticed.
Paying agents for a free certificate
The Ministry warns that no agency is authorised to charge for recognition. If someone is quoting a government fee, verify it.
Assuming recognition gives the tax holiday
The tax holiday under the Income-tax Act needs a separate IMB certificate and further conditions including turnover and incorporation dates. Plan this separately.
Ignoring restrictions after recognition
Investing in real estate, luxury assets or speculative instruments during the recognition period can put the status at risk.
Consequences of non-compliance
There is no fixed fee or fine for not applying, because recognition is optional. The risks come from misuse: recognition can be revoked where the application contained false information, and benefits claimed on that basis can be reversed. Tax benefits under the Income-tax Act, 2025 are conditional, and a claim without the required certificate or outside the conditions can be disallowed. We have not quoted penalty figures because the notification and tax provisions should be read for the specific facts.
Practitioner tips
- Write the innovation note as if explaining to a sceptical examiner. Three short paragraphs on the problem, the solution and the scale route work better than a long marketing text.
- Apply for recognition early, but file for the tax holiday only when you are likely to have profits. Since the deduction is for three years out of ten, timing the block matters.
- Decide whether you qualify as deep tech before applying and keep documentary support ready, because the longer age and turnover limits are valuable.
- Check which entity is better suited before applying. An LLP or private limited company usually fits an investor-backed plan better than a partnership firm, and the tax holiday route is limited to companies and LLPs.
- Keep a one-page file for the recognition: certificate, application copy, innovation note and annual turnover check. It saves time when an investor or tender asks for it.
How Lawgical Guru helps
Eligibility assessment
We test your entity against the 2026 definition, including age, turnover, deep tech criteria and the formation-by-reconstruction exclusion.
Application drafting
We help you articulate innovation and scalability clearly and prepare the NSWS application and uploads.
Query handling
If DPIIT asks for clarification, we help prepare precise replies within the time allowed.
Entity structuring
If you do not yet have the right entity, we support private limited company registration or LLP registration before recognition.
Linked compliances
We assist with trademark registration, founders agreement and annual filings that investors expect from a recognised startup.
Startup India (DPIIT) Recognition: frequently asked questions
What is Startup India registration?
It is recognition by DPIIT that your entity is a startup under the government definition. It is free, applied for on the National Single Window System and does not create a company. It helps you access tax benefits, funding schemes, procurement relaxations and compliance simplifications offered to startups.
Who is eligible for DPIIT recognition in 2026?
A private limited company, registered partnership firm, LLP or cooperative society, up to 10 years old (20 for deep tech), with turnover not above ₹200 crore (₹300 crore for deep tech) in any year, working on innovation or a scalable, high-potential model, and not formed by splitting or reconstructing an existing business.
Is there any fee for Startup India registration?
No. DPIIT does not charge any fee for the recognition certificate. The Startup India page warns that no agency is authorised by the Ministry to charge for it. You will pay only for professional help, if you choose to take it, and not a government fee.
How do I apply for DPIIT recognition?
Register on nsws.gov.in, go to Add Approvals, select Central Approvals and choose Registration as a Startup. Fill in entity and business details, upload incorporation proof and an innovation note, declare that the information is true and submit. Respond to any clarification requested by DPIIT.
Does DPIIT recognition give automatic income tax exemption?
No. The income tax holiday is a separate benefit. Under section 140 of the Income-tax Act, 2025, eligible companies and LLPs incorporated between 1 April 2016 and 1 April 2030 with turnover up to ₹100 crore can claim a 100% deduction for three consecutive tax years out of ten, but need an Inter-Ministerial Board certificate.
What happened to section 80-IAC?
Section 80-IAC belonged to the Income-tax Act, 1961. With the Income-tax Act, 2025 effective from 1 April 2026, the corresponding startup provision is section 140. The benefit is similar in structure, but check the conditions in the new section, including turnover and incorporation window, for your tax year.
What is a deep tech startup under the new rules?
The 2026 notification gives deep tech startups extended limits of up to 20 years from incorporation and ₹300 crore turnover. The applicant has to show that the work meets the deep tech criteria set out in the notification. Read the notification's formal tests carefully or ask for a professional review before applying under this category.
Can a partnership firm or LLP get Startup India recognition?
Yes. A registered partnership firm and an LLP are eligible entity types along with private limited companies and, now, cooperative societies. The income tax holiday under section 140 is available only to companies and LLPs, so a partnership firm would not get that benefit even if recognised.
Can DPIIT recognition be cancelled?
Yes. Recognition can be revoked if the application contained false information, and the restrictions on prohibited investments continue throughout the recognition period. Benefits that depend on the recognition can be affected. Answer the application truthfully and review your status each year.
Is DPIIT recognition mandatory for starting a business?
No. It is optional. You can run a company or firm without it. Apply only if the benefits matter to you, such as government schemes, tax holiday route, procurement relaxations or investor expectations. A good test is whether you will actually claim at least one benefit within the next year.
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Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. This page was last reviewed on 16 October 2026 against the official sources below. Rules and fees change — confirm on the official portal before you apply.