How to Apply for DPIIT Registration?

The Department for Promotion of Industry and Internal Trade (DPIIT) plays an important role in boosting the startup ecosystem in India. DPIIT registration helps startups access tax benefits, government schemes, and funding opportunities. This recognition supports ease of doing business and encourages innovation. The government continues to promote entrepreneurship and economic growth. This makes DPIIT registration a valuable step for startups aiming to grow and succeed in a competitive market. In this blog, you will learn about how to apply for DPIIT registration.

What is DPIIT Registration?

DPIIT Registration is also referred to as DPIIT Recognition. It is a formal acknowledgment granted by the Department for Promotion of Industry and Internal Trade (DPIIT) as part of the Startup India scheme. It confirms that a business meets the criteria of a startup as defined by the government. Once registered, the startup becomes eligible for several benefits. These include tax exemptions, relaxed compliance rules, faster processing of intellectual property rights, and easier participation in government tenders and funding programs.

Eligibility Criteria for DPIIT Registration

Here are the eligibility criteria for DPIIT registration:

1. Legal Business Structure

The startup must be registered as a Private Limited Company under the Companies Act, a Limited Liability Partnership under the LLP Act, or a Registered Partnership Firm under the Indian Partnership Act. Other structures like sole proprietorships or unregistered entities do not qualify for DPIIT recognition.

2. Company Age Limit

The date of incorporation must not exceed ten years. The startup remains eligible for DPIIT recognition only within the first ten years from the date it becomes a legal entity.

3. Annual Turnover Limit

The startup’s turnover must not exceed Rs. 100 crore in any financial year since its incorporation. This ensures the benefit targets emerging businesses, not large established companies.

4. Focus on Innovation and Development

The startup must work on developing a new product, process, or service, or improving an existing one. It must show potential for solving real problems, creating jobs, or contributing to economic growth.

5. No Split or Reconstructed Business

The startup must not form through the breakup or reformation of an existing business. This rule prevents older companies from restructuring just to claim startup benefits.

Documents Required For DPIIT Registration

The following documents are required for DPIIT registration:

1. Mandatory Documents

• Certificate of Incorporation or registration
• Entity PAN Card: Company/firm’s PAN
• Founders’ KYC: PAN card, Aadhaar card of directors/partners, plus a passport-size photograph
• Registered Office Proof: Utility bill, rent agreement, or NOC not older than 60 days
• Digital Signature Certificate (DSC): Class 3 DSC for the authorized signatory

2. Innovation and Business Evidence

• Brief business description (pitch deck or write-up explaining innovation, scalability, wealth/employment potential)
• Proof of concept such as website link, video demo, prototype, or IP certificates (patents, trademarks, copyrights)

3. Optional (But Helpful)

• MSME/GST registration certificate
• Pitch deck, business plan, or investor recommendation letters
• IPR documentation like patent or trademark certificates

How to Apply for DPIIT Registration?

Below is the step-by-step process to apply for DPIIT registration:

Step 1: Register on the Startup India Portal

Go to the official Startup India portal. Create an account using the startup’s details such as name, type of entity, date of incorporation, and contact information. This registration allows access to the DPIIT Recognition form.

Step 2: Create an Account on the NSWS Portal

Visit the National Single Window System (NSWS) portal. Set up a user profile under the "Investor/Startup" category. This portal helps in managing government approvals through a unified platform.

Step 3: Add DPIIT Registration as a Central Approval

After logging in to NSWS, select the “Add Approvals” option. Choose “Central Approvals” from the list. Search and select “Registration as a Startup.” Add this to the application dashboard to proceed.

Step 4: Fill the Application Form

Enter all required information in the DPIIT application form. Include details such as business model, innovation summary, sector, problem addressed, proposed solution, revenue model, and founder profiles. Ensure that all fields are accurate and complete.

Step 5: Upload Required Documents

Attach the necessary documents such as the Certificate of Incorporation, PAN card of the entity, Aadhaar and PAN of directors or partners, proof of office address, and pitch deck or product demo. Include intellectual property certificates if available.

Step 6: Provide Self-Declaration

Confirm that the startup is not more than 10 years old, the annual turnover does not exceed Rs. 100 crore, the business model is original, and the entity is not a split or restructured version of an existing company. Accept the terms and validate the declaration digitally.

Step 7: Submit the Application

Once the form is complete and all documents are uploaded, submit the application through the NSWS dashboard. There is no government fee for this process. The form goes directly to DPIIT for verification.

Step 8: Track the Application Status

Use the NSWS portal or Startup India portal dashboard to monitor the progress of your application. DPIIT usually processes applications within 2 to 7 working days.

Step 9: Download the DPIIT Recognition Certificate

After approval, download the DPIIT Certificate from the Startup India portal, NSWS dashboard, or Digilocker. This certificate confirms the official recognition of your startup.

Benefits of DPIIT Registration

Below are the benefits of DPIIT registration:

1. Income Tax Exemption under Section 80-IAC

A DPIIT-recognized startup gets a 100% income tax exemption on profits for any three consecutive financial years within its first ten years. This benefit helps reduce the financial burden during the early growth stage and encourages reinvestment in the business.

2. Angel Tax Relief under Section 56(2)(viib)

Startups often raise funds at a premium from angel investors. DPIIT recognition allows them to claim exemption from tax on this excess amount. This provision makes private investment more accessible and avoids penal taxation.

3. Fast-track Patent and IPR Support

DPIIT-recognized startups receive priority in patent application processing. They also get an 80% rebate on patent filing fees and a 50% rebate on trademark registration. Startups also access government-assigned facilitators for guidance without additional cost.

4. Self-certification under Labour and Environmental Laws

Recognized startups can self-certify compliance with six labor laws and three environmental laws for five years. This reduces the regulatory burden and minimizes physical inspections, helping startups focus on business development.

5. Access to Government Tenders

DPIIT-recognized startups can apply for government tenders without the requirement of prior experience or turnover. This opens doors to large public sector projects and creates fair competition between new and established companies.

6. Faster Exit under IBC Framework

If a DPIIT-recognized startup decides to shut down, it can do so within 90 days under the Insolvency and Bankruptcy Code. This quick exit helps entrepreneurs close failed ventures efficiently and restart new ones without delay.

7. Access to Funding Support

Startups with DPIIT recognition can apply for schemes like the Seed Fund Scheme and Fund of Funds. These offer equity support, grants, and loans without collateral. The government also connects startups with venture capital networks and banks.

8. Networking and Knowledge Resources

DPIIT provides access to a national startup hub that includes mentorship, incubator support, and participation in national and international startup events. These resources help startups gain visibility, learn from experts, and scale faster.

How to Download the DPIIT Certificate?

Below are the processes to download the DPIIT certificate:

Step 1: Open the Startup India Portal

Visit the official Startup India portal. Sign in using your registered email address and password. This is the same login used at the time of the DPIIT Recognition application.

Step 2: Go to the DPIIT Recognition Section

After login, access your profile dashboard. Click on the section titled “DPIIT Recognition”. This section displays the status of your application and certificate download option.

Step 3: Confirm Recognition Status

Check the current status of your application. The certificate appears only if the status shows “Recognized”. If the status is still “Under Review” or “Pending”, you must wait for the DPIIT team to complete the verification process. This usually takes between 2 to 7 working days.

Step 4: Click the Download Option

Once the status is updated to “Recognized,” click on the “Download Certificate” button. The certificate is available in PDF format. Save it on your device for future reference.

Step 5: Use the NSWS Portal (Alternative Method)

Go to the official NSWS portal and log in with the same registered credentials. Open the “Central Approvals” section from the dashboard. Find the approval titled “Registration as a Startup” and click on the download option next to it. This also gives you the DPIIT Certificate.

Step 6: Access Certificate from DigiLocker

Open the DigiLocker website or mobile app. Search for “DPIIT Recognition Certificate” in the document issuer list. Enter your entity’s name or DPIIT certificate number. Also, provide the mobile number linked to your Startup India account. After verification, click the download option to access the certificate in digital format.

Step 7: Ensure Accurate Profile Linking

Make sure the details on all platforms like Startup India, NSWS, and DigiLocker match exactly. This includes the company name, CIN, PAN, and registered mobile number. Any mismatch can block access to the certificate.

However, this step-wise process allows startups to download the DPIIT Recognition Certificate through three official channels: Startup India, NSWS, and DigiLocker.

Conclusion

DPIIT registration gives startups many benefits such as tax exemptions, funding access, and simplified compliance. It also builds trust among investors and government bodies. This recognition helps new businesses grow faster and gain better visibility. The Indian government supports startups through dedicated online platforms that ensure a smooth and free registration process. Eligible startups should apply for DPIIT recognition to take full advantage of these benefits and operate in a more supportive and business-friendly environment. If you want to register your startup business, contact Online Legal India. They have experts to assist you.