New Tax Regime Vs Old Tax Regime (Income Tax 2025-26)
28 Jun, 2025
By Online Legal India
Published On 27 Jun 2025
Category Startup
Starting a business in India has become easier with the government's support. One such support is DPIIT Startup Registration. This helps new companies get official recognition from the Department for Promotion of Industry and Internal Trade. It gives many benefits like tax relief, help with funding, and faster approvals. In this article, we will explain the full process to register your startup under DPIIT. You will also learn who can apply, what documents are needed, and how to complete the registration step by step.
DPIIT registration is a government recognition given to eligible startups in India by the Department for Promotion of Industry and Internal Trade. It helps startups get benefits like tax exemptions, funding support, easier compliance, and faster approval for patents. To get this recognition, a business must be less than 10 years old, have an annual turnover under Rs.100 crore, and work on something new or innovative. Once registered, the startup gets a certificate that helps it grow faster with government support.
DPIIT registration is important because it gives startups many benefits that help them grow faster and with less hassle. It allows them to save money through tax exemptions, get easier access to government funding and tenders, and reduce compliance burdens by self-certifying under certain laws. It also helps startups gain trust from investors, customers, and other partners. Overall, DPIIT recognition makes it easier for new businesses to succeed and become part of India’s growing startup ecosystem.
To be recognised as a startup by the Department for Promotion of Industry and Internal Trade (DPIIT), your business must be officially registered as a Private Limited Company, Limited Liability Partnership (LLP), or a registered Partnership Firm. This ensures it is a proper, legal business.
Your startup should be no more than 10 years old since it was officially formed. This rule is meant to support and give benefits to new businesses, not older ones that have already grown.
The company’s annual turnover must be under Rs.100 crore every year since it began. If the business earns more than Rs.100 crore in any year, it will no longer qualify for DPIIT recognition.
The startup must focus on innovation, either by creating something new or improving existing products or services. It should also have the potential to grow fast and create jobs, often by using new technology or smart business ideas.
Your startup should be a new venture, not created by splitting or reorganising an existing business. DPIIT wants to ensure that the business stands on its own as a fresh and original idea.
DPIIT startup registration brings special support from the government to help new businesses grow and succeed. Below are some of the benefits mentioned:
Recognised startups receive a tax break on profits for 3 years out of their first 10 years. This means they can reinvest earnings back into the business instead of paying tax.
Startups are exempt from paying tax on the extra amount when they receive investments, if they meet DPIIT’s conditions.
DPIIT-recognised startups get patents and trademarks processed faster and enjoy a large fee rebate up to 80% on government charges.
Startups can self-declare compliance with 6 labour laws and 3 environment laws, with no inspections for 3–5 years, saving valuable time and effort.
Recognised startups can bid for government contracts without needing prior experience or turnover, and are also exempt from the Earnest Money Deposit requirements.
Recognition unlocks schemes like the Startup India Seed Fund, Fund of Funds for Startups Rs.10,000 cr, and the Credit Guarantee Scheme Rs.2,000 cr for collateral free loans.
If a startup needs to close, DPIIT rules allow it to wind up smoothly within 90 days under a simplified insolvency process.
Recognised startups become eligible for incubators, accelerators, mentorship, and networking opportunities both within India and globally.
These benefits help startups save money, reduce legal red tape, protect their ideas, grow faster, and access funding, giving them a strong edge as they build and scale their business.
Startups that are recognised by DPIIT stand out from the rest. Whether it is applying for funds, joining startup events, or getting media attention, these recognised companies get preference. They are seen as more reliable and promising. Many investors and customers are more comfortable dealing with DPIIT-recognised startups because they know such businesses follow government guidelines and are officially verified.
DPIIT-recognised startups often receive invitations to government-led international programs, trade missions, and global events. These opportunities help your business connect with investors, partners, and mentors from around the world. You also gain access to incubators, accelerators, and academic collaborations, which can accelerate your growth and bring new ideas from different industries.
Getting recognised by DPIIT is a simple online process that helps your startup unlock official support, benefits, and trust. Here is how it works.
Step 1: Incorporate Your Business
First, legally register your company. You can choose one of three types: Private Limited, LLP, or Registered Partnership Firm. This registration is done with the Ministry of Corporate Affairs or the local registrar for partnerships. This step makes your startup a real legal entity under Indian law.
Step 2: Create a Profile on the Startup India Portal
After incorporating, visit StartupIndia portal. Sign up, fill in your details, and create your startup profile. You will share basic info like your company name, stage, sector, and contact details. Go carefully through each field. This is your official startup introduction.
Step 3: Register on the NSWS Portal
To apply for DPIIT recognition, you must go to the National Single Window System (NSWS). Sign up as an investor or startup founder, verify via OTP, and set up your profile there as well.
Step 4: Add DPIIT Startup Approval on NSWS
Once you are logged in, click Central Approvals, then search for “Registration as a Startup” under the DPIIT category, and click “Add to Dashboard.” This gives you access to the DPIIT application form.
Step 5: Self-Certify Eligibility
Before you apply, make sure your startup meets all criteria: it should be under 10 years old, not formed by splitting or merging another business, and have Indian majority ownership. You will confirm these as self-declarations in your form.
Step 6: Fill in the Form & Upload Documents
You can now open the DPIIT form from your NSWS dashboard. Fill in all required info, like business idea, team, and innovation summary. Then upload documents such as:
Make sure to check each upload carefully before moving ahead.
Step 7: Submit & Track Application
Once everything is filled and uploaded, submit the form no edits are allowed later. You will get a reference number. You can monitor the application's progress on your NSWS dashboard.
Step 8: Receive Recognition Certificate
If there are no issues, DPIIT usually approves your application within 2 working days. You will receive your DPIIT recognition certificate via email, the NSWS dashboard, or DigiLocker. You can download and save it securely.
Post Recognition Benefits
Once your startup is recognised by DPIIT, you unlock a range of practical benefits that help it grow smoothly:
For Section 80 IAC, your startup can be completely exempt from income tax on profits for three years within the first ten years of operation. This helps you reinvest more money into your startup instead of paying taxes.
Plus, recognized startups no longer pay the extra “angel tax” on the money received from investors. This makes it easier and fairer to raise funds.
You can self-certify compliance with six labour laws like EPF and ESI, and three environmental laws, all online. No normal inspections will happen for 3–5 years unless someone files a serious written complaint. That saves time and hassle.
Your patent and Trademark applications will be fast-tracked, and government fees can be rebated by up to 80 %, helping you protect your ideas faster and at lower cost.
When bidding for government contracts via GeM, you don’t need experience, and you are exempt from paying earnest money deposits.
You also gain access to government funding schemes like the Fund of Funds Rs.10,000 cr, Credit Guarantee Rs.2,000 cr, and Startup India Seed Fund offering easy loans and financial support to fuel your growth
Troubleshooting Common Issues
Even though the DPIIT registration process is mostly online and simple, you might face a few technical or document-related problems along the way. Here is how to understand and fix the most common ones easily.
When you are applying for DPIIT recognition, one of the most common problems people face is related to the Digital Signature Certificate. A frequent error many founders see is a message that says the PAN details do not match the digital signature. This usually happens when the PAN entered in the application form doesn’t match the PAN linked to the DSC being used.
To fix this, you should first check whose PAN is linked to your DSC. You can do this by using the DSC software provided by the certificate authority, like eMudhra or Sify. The name and PAN on the DSC must exactly match what you filled in the DPIIT form. Even a small spelling mistake or missing letter can cause an error. So, double-check all the details carefully before trying again.
Another important point is to make sure that you are using a Company DSC, not a personal one. A lot of applicants try to complete the process with a personal DSC linked to their individual PAN, but DPIIT registration is for a startup or company, not for you as a person. So, the digital signature you use must be registered under the startup’s PAN and name. If you are not sure, ask the person who issued your DSC to confirm it.
Some users also face technical issues, like the system not reading the token or the form getting stuck. In such cases, it is a good idea to check that the DSC token is properly connected to your laptop or desktop and that the required software like emBridge or the appropriate DSC driver, is running in the background. If it still doesn’t work, restarting the system or reinstalling the driver may help.
Sometimes, one DSC is linked to more than one PAN. That can also lead to rejection or error messages during submission. To avoid this, make sure the DSC is linked to only your startup’s PAN and not to any other company or individual.
Conclusion
DPIIT startup registration gives you key advantages like tax relief, fast IPR approval, and smoother access to tenders and funding all through an easy online process. Tackling form filling, DSC mismatches, GST, and legal compliance can be tricky, but you don’t have to go it alone. Online Legal India assists you with your company incorporation, GST filing, DPIIT registration, and ongoing compliance, all online and hassle-free. Thousands of founders have praised their service. Connect with our team of experts right away.
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