Step-by-Step Guide to DPIIT Registration for Start-ups

DPIIT (Department for Promotion of Industry and Internal Trade) registration provides numerous benefits to start-ups in India, such as tax exemptions, easier compliance processes, and access to government schemes. Below is a comprehensive step-by-step guide to help start-ups navigate the DPIIT registration process effectively.

Step 1: Meet Eligibility Criteria

Before applying, ensure your start-up fulfills the following conditions:

1. Incorporation Age:

   • The entity must not be more than 10 years old from the date of incorporation.

2. Entity Type:

   • The entity should be a Private Limited Company (under the Companies Act, 2013), a Partnership Firm(under the Indian Partnership Act, 1932), or a Limited Liability Partnership (LLP) (under the Limited Liability Partnership Act, 2008).

3. Turnover Limit:

   • The annual turnover should not exceed ?100 crores in any financial year since incorporation.

4. Innovation or Improvement Focus:

   • The business should aim for innovation, development, or improvement of products, processes, or services or demonstrate a scalable business model.

5. No Reconstruction:

   • The start-up should not have been created by splitting up or reconstructing an existing business.

Step 2: Register Your Business

Ensure that your business is registered under the appropriate laws before applying for DPIIT recognition:

• Private Limited Company: Register under the Companies Act, 2013.

• Partnership Firm: Register under the Indian Partnership Act, 1932.

• LLP: Register under the Limited Liability Partnership Act, 2008.

Step 3: Create an Account on the Start-up India Portal

1. Visit the official Start-up India website.

2. Click on the ‘Register’ button and create an account.

3. Provide the necessary details such as your name, email address, and mobile number to complete the registration process.

Step 4: Apply for DPIIT Recognition

1. Log in to the Start-up India portal using your registered credentials.

2. Navigate to the DPIIT Recognition section under “Start-up Recognition.”

3. Fill in the DPIIT application form, which typically includes:

   • Company Details: Name, incorporation date, address, etc.

   • Director/Partner Details.

   • Description of Business Activities.

   • Supporting Documents (listed in Step 5).

Step 5: Upload Required Documents

The following documents are essential for DPIIT recognition:

1. Certificate of Incorporation/Registration: Proof of your start-up’s legal existence.

2. Description of Business: A detailed write-up explaining how your start-up is innovative or scalable.

3. Proof of Funding (if applicable): Documents showing investment raised.

4. Patent or Trademark Certificates (if applicable): Intellectual property documentation.

5. Awards or Certificates of Recognition (if any): Highlighting achievements that add credibility.

Step 6: Submit the Application

1. Review all details and ensure accuracy.

2. Submit the completed application through the portal.

3. A reference number will be generated for tracking your application status.

Step 7: Verification and Approval

1. The DPIIT team will review your application and documents.

2. If any additional information is required, they will contact you.

3. Once approved, the DPIIT Registration Certificate will be issued and sent to your registered email ID. You can also download it from the portal.

Benefits of DPIIT Registration

DPIIT recognition provides the following advantages:

1. Tax Exemption:

   • Tax benefits under Section 80-IAC of the Income Tax Act for three consecutive years.

2. Exemption from Angel Tax:

   • Investments above fair market value are exempt from taxation under Section 56(2)(viib).

3. Access to Start-up India Benefits:

   • Eligibility for government funding schemes and tenders reserved for start-ups.

4. Self-Certification for Compliance:

   • Simplified processes for compliance with labour and environmental laws.

5. Faster IPR Processing:

   • Expedited processing of patent applications and access to IPR benefits, including reduced fees.

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Article Compiled by:-

~Neel Lakhtariya

(LegalMantra.net Team)