yojana:startup-india
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Startup India — recognition, tax holiday, Rs 50L seed grant (2026)

DPIIT recognition + 3-year tax holiday + Rs 50 lakh in seed grants + IPR fast-track + GeM access + IPO simplifications.

Launched: 2016 · Issued by: Department for Promotion of Industry and Internal Trade (DPIIT)

Who is eligible

  • Indian entity (Pvt Ltd / LLP / Partnership)
  • Founded < 10 years ago
  • Annual turnover < Rs 100 crore
  • Original innovation in product / service / process / business model
  • Not formed by splitting existing business

What you get

Recognition (DPIIT certificate); 3-year income tax holiday under Section 80IAC; angel-tax exemption; Rs 20L convertible debt + Rs 50L grant via Startup India Seed Fund Scheme; faster patent processing (50% rebate); MSME tender preferences via GeM; ESOP tax deferral.

How to apply (step-by-step)

  1. Apply for DPIIT recognition — startupindia.gov.in → online application.
  2. Submit incorporation cert + brief description — Innovation + scalability statement.
  3. Recognition issued in 30 days — DPIIT cert downloadable.
  4. Apply for Section 80IAC tax holiday — Within 12 months of recognition; CBDT approves.
  5. Apply for seed fund grant — Through DPIIT-empanelled incubator (50+ across India).
  6. Use IPR fast-track — 50% rebate on patent fees; expedited examination.

Documents needed

  • Incorporation certificate
  • PAN
  • Innovation description
  • Founder Aadhaar

Timeline

Recognition: 30 days. Tax holiday: 90 days post-recognition. Seed fund: 6-12 months.

Portal + helpline

Common issues

  • Recognition denied — innovation criteria not met; refine pitch.
  • Tax holiday denied — CBDT scrutinizes; need genuine innovation.
  • Seed fund competition tough — 50K+ applicants for limited grants.
  • Incubator empanelment varies — research before applying.

Benefit delayed or rejected? File an RTI

Most “delays” or “rejections” clear within 7-15 days of an RTI being filed. Use this 5-question template:

1. Status of my application no. _____ dated _____ as on date.
2. Name + designation of dealing officer assigned to my file.
3. Reasons for delay beyond the statutory timeline.
4. Copy of any noting / movement of my file in the past 30 days.
5. Likely date of disbursement / decision.

Auto-fill the PIO + your case: Open the AI RTI Drafter →

More schemes for you: All msme entrepreneurs schemes

Frequently asked questions

How do I prove innovation?

Original product + technology + business model. Patents help. CBDT scrutinizes.

Tax holiday claim?

Apply via Form 1B within 12 months of recognition. CBDT approves once for 3 of first 7 years.

Seed fund vs grant?

Convertible debt up to Rs 20L + grant up to Rs 50L; via incubators.

Recognition stuck > 30 days?

File RTI to DPIIT.

Summary + next step

Bottom line: DPIIT recognition + 3-year tax holiday + Rs 50 lakh in seed grants + IPR fast-track + GeM access + IPO simplifications. Apply at startupindia.gov.in. If delayed beyond timeline, file an RTI — most cases clear within 15 days.

Sources

  • Official portal: startupindia.gov.in
  • Issued by: Department for Promotion of Industry and Internal Trade (DPIIT)
  • Launched: 2016
  • Citizen feedback via %%AwaazRTI%% (composite, identifying details removed)

Last reviewed: 26 April 2026.

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