Benefits of DPIIT Registration

1. Benefits Under Startup India
Incorporation of Body
Corporate (i.e LLP or Private
Limited)
DPIIT Recognition
Application for 80 IAC Tax
exemption Startup where a
Startup can avail tax holiday for
3 consecutive financial years
out of its first ten years since
incorporation
Startup India: Tax Exemption
under Section 56 of the
Income Tax Act (Angel Tax)
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2. Process
Incorporation
of Private
Limited
DPIIT
Registration
80 IAC Tax
Exemption
Exemption
under Section
56 of the
Income Tax
Act
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3. Benefits of DPIIT Recognition
Self-Certification
Startup Patent Application & IPR Application
Tax Exemption under 80IAC
Section 56 Exemption
Easy Winding up of Company
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4. Self-
Certification
A Startup can self-certify compliance
with 6 labor laws and 3 environmental
laws, reducing regulatory compliance
burden.
For labor laws, inspections are waived
for 5 years unless there's a credible
complaint.
In environmental laws, 'white category'
startups (as per CPCB) can self-certify
with only random checks.
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5. Self-Certification: Labor Laws
The Building and Other
Constructions Workers’
(Regulation of Employment
& Conditions of Service)
Act, 1996.
The Inter-State Migrant
Workmen (Regulation of
Employment & Conditions
of Service) Act, 1979.
The Payment of Gratuity
Act, 1972
The Contract Labor
(Regulation and Abolition)
Act, 1970.
The Employees’ Provident
Funds and Miscellaneous
Provisions Act, 1952.
The Employees’ State
Insurance Act, 1948
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6. Self-Certification: Environmental Laws
THE WATER (PREVENTION & CONTROL
OF POLLUTION) ACT, 1974.
THE WATER (PREVENTION & CONTROL
OF POLLUTION) CESS (AMENDMENT)
ACT, 2003.
THE AIR (PREVENTION & CONTROL OF
POLLUTION) ACT, 1981.
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7. Startup Patent Application & IPR Application
DPIIT recognized startups get fast-tracked patent application processing, a panel
of facilitators for IP application assistance, government-covered facilitation fees.
An 80% rebate on patent filing compared to other companies.
This encourages innovation by making it financially viable to protect their ideas
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8. 80 IAC Tax Exemption
Tax Exemption under 80IAC:
Eligible startups can be exempt from
paying income tax for 3 consecutive
financial years out of their first ten
years since incorporation.
This is applicable for DPIIT
recognized startups that are Private
Limited Companies or LLPs, and
incorporated after April 1, 2016
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9. Tax Exemption under Section 56 of the Income Tax Act
(Angel Tax)
DPIIT recognized startups
are exempt under Section
56(2)(VIIB) of the Income
Tax Act from the 'Angel Tax’.
This includes investments
into eligible startups by
listed companies with a net
worth or turnover above
specified thresholds, and
the consideration of shares
received by eligible startups
up to an aggregate limit of
INR 25 Crore
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10. Easy Winding up of Company
Easy Winding up of Company: As
per the Insolvency and
Bankruptcy Code 2016, eligible
startups can be wound up within
90 days of filing an insolvency
application.
This process includes the
appointment of an insolvency
professional to manage the
company’s closure, asset
liquidation, and creditor
repayment, respecting the
concept of limited liability
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11. Documents
Required for
incorporation
of Company
Data required
Description
Sl. No.
a) Electricity Bill and NOC. (Only if thepremise is
Owned by any director) .
For Address
proof of the
company
1
b) Electricity Bill, NOC, and Rent Agreement (If
the premise is a rented out)
a) For identity proof –Aadhar Card or Driving
Licence or Voter Id
For Director
2
b) For Address proof- Bank Statement or Utility
Bill
c) Photograph
d) Signature
e) Phone no
f) E-Mail Id
g) Occupation
h) DIN No (Only if already have)
i) PAN
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12. Easier Public
Procurement
Norms
Easier Public Procurement Norms: DPIIT recognized
startups have the opportunity to list on the Government e-
Marketplace (GeM), exemption from prior
experience/turnover requirements in government tenders.
Apart from this exemption from submitting Earnest Money
Deposit (EMD) or bid security.
This opens a significant market and lowers barriers to
entry for government contracts.
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