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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)
- Apply for DPIIT recognition — startupindia.gov.in → online application.
- Submit incorporation cert + brief description — Innovation + scalability statement.
- Recognition issued in 30 days — DPIIT cert downloadable.
- Apply for Section 80IAC tax holiday — Within 12 months of recognition; CBDT approves.
- Apply for seed fund grant — Through DPIIT-empanelled incubator (50+ across India).
- 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
- Official portal: startupindia.gov.in
- Helpline: Startup India: 1800-115-565
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.
- Apply now: startupindia.gov.in
- If delayed — RTI Drafter: File RTI in 5 minutes
- Browse all 150 yojanas: Sarkari Yojana index
Related
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.

