FreeComplianceStartup India benefits for DPIIT-recognised startups
1 min read
Once your company has DPIIT recognition, a range of benefits opens up. Some are valuable from day one; others matter only once you are profitable or bidding for government work.
Benefits at a glance
| Area | Benefit |
|---|---|
| Income tax | Three-year tax holiday with IMB certificate (angel tax has been abolished for everyone) |
| Intellectual property | Fast-tracked patent examination, up to 80% rebate on patent fees and 50% on trademark fees, facilitator support |
| Labour and environment laws | Self-certification under several labour laws and some environmental laws for a period after incorporation |
| Public procurement | Relaxation of prior experience and turnover criteria, and exemption from earnest money deposit in many tenders |
| Funding | Fund of Funds for Startups, Startup India Seed Fund Scheme, credit guarantee scheme |
| Winding up | Fast exit under insolvency law for startups with simple debt structures |
| ESOPs | Deferred tax on ESOP perquisites for employees of eligible startups |
Making the most of it
- Apply for DPIIT recognition soon after incorporation; it is free.
- File trademarks and patents after recognition to get the fee rebates.
- Plan the IMB certificate application for when you have traction to show.
Frequently asked questions
DPIIT status ends 10 years after incorporation or when turnover crosses ₹200 crore (20 years and ₹300 crore for deep tech startups), and with it most benefits.
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
Read next
- DPIIT startup recognition: eligibility and how to apply
Who qualifies for DPIIT startup recognition, the documents needed, how to apply on the Startup India portal, and what it unlocks.
- Startup tax holiday: 100% deduction for three years
How eligible startups claim a 100% profit deduction for three consecutive years out of ten, conditions, IMB certification and pitfalls.
- ESOPs for Indian startups: rules, process and tax
How private companies create ESOP plans under Section 62, vesting rules, the special resolution, SH-6 register and tax on exercise.