Start-Up India is an initiative launched by the Government of India to foster employment generation and wealth creation through the development and innovation of products and services. The scheme offers several benefits to registered start-ups, including simplification of work, financial support, access to government tenders, and networking opportunities. To be eligible for registration, the entity must fulfill certain criteria:

Start-Up India Registration

Type of Entity: The entity should be registered as a private limited company or a limited liability partnership firm.

Turnover Limit: The total turnover of the company should not exceed 25 crores in any financial year since its incorporation.

Registration Duration: The entity must have been incorporated or registered in India for a period of up to 7 years. However, for start-ups in the biotechnology sector, this period can be extended to up to 10 years.

Innovation and Development: The entity should be working towards innovation, development, or improvement of products, processes, or services. It should demonstrate a scalable business model with high potential for employment generation or wealth creation.

Exclusion: Entities formed by splitting up or reconstruction of an existing business are not considered eligible for registration.

Department Approval: The entity should have obtained approval from the Department of Industrial Policy and Promotion.

Benefits of Start-Up India Registration:

Tax Exemption: Registered start-ups can apply for income tax exemption benefits under section 80IAC and relief from Angel Tax under section 56. They are exempt from income tax for three years post-incorporation, subject to certification from the Inter-Ministerial Board.

Financial Support: Start-ups receive an 80% rebate on patent costs and faster processing of patent registrations. The government also covers facilitator fees for obtaining patents.

Tender Participation: Start-ups enjoy priority in government tenders and are not required to have prior experience. Relaxations are provided in criteria such as prior experience, Earnest Money Deposit (EMD), or turnover.

Government Funding Opportunity: Start-ups can apply for funding through the Rs 10,000 crore corpus managed by SIDBI (Small Industries Development Bank of India) under the Alternate Investment Funds.

Self-Certification: Registered start-ups are eligible for self-certification and compliance under nine environmental and labor laws.

Easy Winding Up: The Insolvency and Bankruptcy Code 2016 allows start-ups to wind up their operations within 90 days, providing a streamlined process compared to other laws.

Networking Opportunities: The government organizes two start-up fests annually, facilitating networking opportunities with stakeholders from the start-up ecosystem at the domestic and international levels.

Action Plan of the Government of India for Start-ups:

Funding Support: The government has earmarked Rs 10,000 crore as a fund-of-funds to support start-ups. Disbursement of the allocated Rs 2,500 crore annually poses a challenge.

One-Day Company Registration: Entrepreneurs can register their companies in just one day, streamlining the process from the current timeframe of 15-20 days. Challenges include integrating Director Identification Number (DIN), Tax Deduction and Collection Account Number (TAN), and Digital Signatures.

Tax Benefits: Start-ups are exempted from tax on profits and are subject to inspection for three years. Capital gains tax exemption is also provided, along with a credit guarantee scheme.

Capital Gain Exemption: Investments made in another start-up are exempt from capital gains tax.

Relaxed Procurement Norms: Start-ups enjoy relaxed norms for participating in public procurement jobs through tenders, including relaxation in prior experience, EMD, and turnover criteria.

Intellectual Property Rights Protection: A new intellectual property rights protection scheme offers an 80% reduction in patent fees and fast-tracking of patent examination.

Special Schemes: Special schemes are introduced to support women entrepreneurs, encourage incubation centers, and provide support to biotechnology start-ups.

Information and Documents Required for Registration:

To register under the Start-Up India scheme, the following documents are required:

Certificate of Incorporation (in case of a company or LLP) or Registration Certificate and PAN (in case of other entities).

Details of Directors/Partners: Name, Photo, Gender, Mobile No., Email ID, and Full Address.

Company Details: Industry, Sector, Category, Registered Office Address, etc.

Brief Business Description: Provide information about the business, products/services, and any notes on innovations.

Authorized Representative Details: Name, Designation, Mobile No., and Email ID.

Revenue Model and Uniqueness: Explain the revenue model and highlight the uniqueness of the product or service.

Website: If applicable, provide the website URL.

By meeting the eligibility criteria, availing the benefits, and submitting the required documents, start-ups in India can leverage the Start-Up India scheme to drive their growth and innovation while enjoying various support measures provided by the government.


You may contact the author for further information at +91 9899595719  or

Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.

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Qualification: CA in Practice
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Member Since: 28 Apr 2019 | Total Posts: 12
Experienced Chartered Account with a demonstrated history of working in the accounting industry. Skilled in GST, Income Tax, Internal Audit, Due Diligence, Account Reconciliation, Auditing, and Accounting. Strong accounting professional with a Bachelor of Commerce (B.Com. Hons) focused in Tax Law/Ta View Full Profile

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