The Indian Government has launched Startup India with the purpose of creating a robust environment that fosters the growth of startups and innovation in the country. The ultimate goal is to support sustainable economic development and generate significant employment opportunities. The government plans to help startups progress through innovation and design so that they can thrive and succeed.

The goals of the Startup India Movement are listed as follows. The plan of action includes providing assistance to startups and much more.

and other facilities that support entrepreneurship, are crucial in facilitating the creation and growth of startups. These initiatives enable startups to access resources, mentorship, and networking opportunities that increase their chances of success. By providing a conducive environment for the development of innovative ideas, entrepreneurs are better equipped to contribute to the economy and society at large.
IPR (Intellectual Property Rights) facilitation, which involves making the process of filing patents easier.
A more favorable system of regulations, which encompasses advantages such as tax breaks, simplified adherence, streamlined company establishment, speedy procedures, and other benefits.
An objective to enhance the chances of obtaining financial support.
Offer an extensive network database to entrepreneurs and other individuals involved in the startup community.

Eligibility Criteria

In order to obtain the DPIIT Certificate of Recognition, the startup is required to fulfill the specified eligibility criteria.

Timeframe during which the entity has been in existence: The company must limit its lifespan and activities to a maximum of 10 years starting from the day it was established.
Type of Entity: The DPIIT Certification of Recognition is awarded to companies that are established as a Private Limited Company, a Limited Liability Partnership (LLP), or a Registered Partnership Firm.
Annual Turnover: In order to obtain the DPIIT Certificate of Recognition, the company must have generated an annual revenue of Rs. 100 crore for at least one fiscal year following its establishment.
Original Entity: In order to obtain the DPIIT Certificate of Recognition, the company must not have been formed by dividing or reconstructing an already established entity.
Innovative Scalable Entity: The organization needs to focus on enhancing or advancing a product, procedure, or assistance.
The organization needs to have a business model that can be expanded and holds the potential to produce substantial economic benefits, such as job creation and wealth generation. The company should possess the capacity to provide employment or promote financial prosperity.

Procedure to get DPIIT Certificate

The following easy steps should be followed by the entity in order to obtain the DPIIT certificate of recognition.

Incorporation of the Business

As mentioned earlier, prior to proceeding, it is necessary for the entity to establish the business structure as either a Private Limited Company, Partnership firm, or Limited Liability Partnership (LLP).

One can get their business registered with the Startup India Scheme, which is implemented by the Indian government to support and promote innovative startups. The government provides various benefits like tax exemption, easy access to funds, and a dedicated helpline for startups under this scheme. The registration process can be done online through the Startup India website, and the applicant needs to provide necessary documents like PAN card, certificate of incorporation, and business plan for the registration.

To obtain the DPIIT certificate of recognition, the startup must be enrolled under Startup India Scheme.

Apply for Start-up Recognition

In order to receive the DPIIT Certificate of Recognition for Startups, the applicant unit must go to the Start-up India Recognition portal and register with Start-up India.

Include the specific information required in the application for Start-up Recognition.

Details about the Entity: Description of the Entity's Characteristics, Field of Business, Type of Business, Classifications, as well as the Company's Identification Number and Date of Registration.
Full Address of the Entity
Details of the Authorized Representative
Directors or Partner Details
Details of Intellectual Property Right
Details of funding
Recognition received by the entity

Get the Startup Recognition Number

Upon scrutiny of the application and accompanying paperwork, the certification acknowledging startups from the DPIIT shall be bestowed.

After the ministry grants approval for the application and assigns a special recognition number for startups, they become eligible for registration with tax advantages.

Benefits for DPIIT Recognized Startups

Once a startup receives the DPIIT Certificate of Recognition for Startups, it can take advantage of the subsequent advantages.

Self Certification

Once the entity receives the DPIIT Certificate of Recognition for Startups, they will have the authority to certify their own compliance with three different Environmental Laws and six different Labour Laws.

Start-Up Patent Application

Startups that have been acknowledged by DPIIT are obligated to pay only 80% of the charges for obtaining patents, trademarks, copyrights, and designs. Additionally, the process of obtaining a patent quickly will be accessible for startups.

Easier Public Procurement Norms

Startups that have been acknowledged by DPIIT will have the chance to have their product featured on the Government e-Marketplace.
Startups that have been acknowledged by DPIIT are not required to provide an Earnest Money Deposit.
Newly launched companies are given a waiver for previous experience or revenue in all ministries and departments of the Central Government.

Easy winding up of Company

As per the Insolvency and Bankruptcy Code of 2016, a company can be liquidated within a span of 90 days after initiating insolvency proceedings.

Funds of Funds

The Alternative Investment Funds will provide funds of up to Rs.10000 crore for startups that qualify.

Credit Guarantee fund

Over a span of four years, startup companies have access to a Credit Guarantee fund of Rs.2000 crore through either the National Credit Guarantee Trust Company or SIDBI.

Tax Exemptions

Once the Certificate of Recognition is acquired, the startup may seek exemption from taxes under section 80 IAC of the Income Tax Act.
Startups that have been acknowledged by the DPIIT have the opportunity to request an exemption from Angel Tax.
Once a startup is recognized by the DPIIT and granted Tax exemption clearance, it will be free from income tax for a period of three fiscal years within its first ten years of existence.