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A Step by Step Guide for Startup India Scheme

  • Posted By SuperCA
  • On 22 July

A Step by Step Guide for Startup India Scheme

The Startup India Scheme was initiated by the government of India in the year 2016 and its main aim was to promote startups, generate employment and create wealth. Several programs were initiated under the Startup India Scheme in order to create a strong and healthy startup ecosystem and to transform India into a country of job providers. All of the launched programs were monitored by the DPIIT (Department for Industrial Policy and Promotion). In this blog, we will discuss in detail the Startup India Scheme.


An Startup

If any company has the following conditions, then it will be deemed as a startup and will be able to enjoy the benefits form the Indian Government if it is recognised by the DPIIT:

  • Age of the Company:
  • Type of Company:
  • Annual Turnover:
  • Original Entity:
  • Innovative and Scalable:


Benefits offered by  the DPIIT

Those startups which are registered under the DPIIT will be ab;e to enjoy the benefits that have been listed below:

  • Hand Holding and Simplification:
  • Funding and Incentives:
  • Incubation and Industry-Academia Partnerships:


Self Certification

In order to lessen the regulatory burden on the startups, the procedure of self-certification was introduced. It also helps the startups to focus on the core business.


  • Startups can self-certify through a simple online process for 6 labour laws and 3 environmental laws.
  • Inspections will be performed for 5 years for labour laws. The startups will be evaluated on the basis of the receipt of some credible and verifiable complaint of violation in written form to the officer who is responsible for the inspection.
  • The startups that are under the white category will have to self-certify compliance for environmental laws. Also, in such cases only random checks will be done.


Eligibility for self-certification:

Any startup that has been recognised by the DPIIT within 5 years of its incorporation is eligible for self-certification.


Registration Process:

  1. The startup will have to be registered on the Shram Suvidha Portal belonging to the Ministry of Labour and Employment.
  2. Register on the portal and then sign in.
  3. After signing in to your account successfully, click on “Is any of your establishment a startup?”
  4. Then do the registration by following the steps listed further in the blog.


Tax Exemption under 80 IAC

Some of the eligible startups are exempted from paying tax for 3 continuous FYs out of the first ten years from their incorporation.


Registration Process:

  1. Visit the Portal of Startup India and register the startup.
  2. Get the recognition from DPIIT after registration.
  3. Access the application for exemptions under Section 80 IAC.
  4. Fill in all the details and upload the required documents and then submit the application form.


Documents Required:

  1. An MoA for a private limited deed or an LLP deed.
  2. Board Resolution
  3. Annual account of the last 3 years of the startup
  4. IT returns of the last 3 financial years
  5. Visit the dashboard of your Startup india portal to check the status of your application on the top right of the page.
  6. Email at for any sort of clarifications.


Exemptions under Section 56


  1. Investments made for startups that are eligible by some of the listed companies whose net worth exceeds Rs. 100 Cr. or the turnover exceeds Rs. 250 Cr.
  2. Investment made for qualified startups by accredited investors, Non-residents, AIFs and listed companies whose net worth exceeds Rs. 100 Cr. or turnover exceeds Rs. 250 Cr.
  3. The consideration of shares that has been received by the startups that are eligible will be exempt up to Rs. 25 cr.



  1. The firm needs to be a private limited company.
  2. It should be recognised by the DPIIT.
  3. Should not invest in any specified asset classes.
  4. Must not invest in immovable property, vehicles above Rs. 0 lakhs, advances and loans, capital contributions to others.


Registration Process:

  1. Register on the Startup India Portal.
  2. Get recognition from the DPIIT.
  3. File the application form for exemptions under Section 56.
  4. An email will be sent to the startup company on the activation of registration.


IPR and Patent Application

The main aim is the reduction of cost and time taken to acquire a patent by a startup. This helps in making it financially possible to safeguard their innovations and also helps in encouraging them to innovate more.

  1. In order to help startups in realising their value sooner, the applications will be fast-tracked.
  2. A panel of facilitators will be assisting the startups in filing IP applications.
  3. Under the Startup India Scheme, the entire fees of the facilitators for all the patents, trademarks that are filed by the startup will be borne by the Central Government. This ensures that the startup only has to pay the cost of statutory fees that is payable.
  4. 80% rebate will be granted to the startups while filing for patents.


Features of the Startup India Scheme

The scheme stands out due to the features that are listed below:

  1. For three years, the new-entrants will be given a tax-holiday.
  2. The startups have been granted a fund of RS. 2500 Crores and a fund for credit guarantee of Rs. 500 Crores.


Eligibility for the Startup India Scheme
  • The company should either be a private limited company or an LLP.
  • The firm should be older than 5 years and the total turnover should not be more than Rs. 25 Crores.
  • The firm should be approved by the DPIIT.
  • The firm will be approved by the DPIIT if it is being funded by an angel fund, incubation fund or a private equity fund.
  • The firm must acquire the patron guarantee which is provided by the Indian Patent and Trademark Office.
  • The firm must have a recommendation ;letter provided by the incubation.
  • The capital should be exempt from income tax as per the startup india campaign.
  • The firm must possess innovative products or schemes.
  • The funds like the angel fund, accelerators, incubation funds and the private equity funds need to be registered with SEBI.


Registering your Company

In order to register on the startup portal, the entity should be one of the following:

  1. Partnership Firm:
  2. Limited Liability Partnership Firm:
  3. Private Limited Company:


Application Process

Follow the listed steps to register your company:

  1. Visit the startup india portal and log in to your account.
  2. Enter your legal entity.
  3. Enter either the registration or the incorporation number.
  4. Enter the date of registration or incorporation.
  5. Enter the PAN Number, if any.
  6. Enter the details like the address, State and Pin code.
  7. Input the authorised representative’s details.
  8. Input the details of the partners and directors.
  9. Upload all the required documents along with the self-certification as specified.
  10. File the certificate of registration or the certificate of incorporation of the company.



In this blog, we learnt about the Startup India Scheme, startups, DPIIT and the benefits availed by it, Self-certification and tax exemptions under 80 IAC and under Section 56. We also discussed the patent and IPR application and the features, eligibility criteria and application process for the Startup India Scheme.