Insights & Research
Adv. Hashim Wafa
Business Lawyer & Company Secretary [CS]
The Government of India has launched 'Start-up India initiative' back in 2016 with the objective of supporting entrepreneurs, building a robust start-up ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Start-up India cell, which reports to the Department for Industrial Policy and Promotion (DPIIT).
Under the Start-up India initiative, eligible companies can get recognised as Start-ups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking and more. Learn more about start-up recognition, eligibility and benefits in the below write-up.
2. Eligibility criteria for Start-up recognition by DPIIT:
Your company/entity must meet the following criteria to be considered eligible for DPIIT start-up recognition.
3. Registration procedure & documents
The process of recognition of an eligible entity as start-up shall be as under:-
4. Benefits of registering under start-up India
5. Tax benefits for start-up’s:
a. Start-up India: Tax exemption under section 80 IAC of the Income Tax Act:
Post getting recognition a Start-up may apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Start-up can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Eligibility Criteria for applying to Income Tax exemption (80IAC):
Registration documents for 80 IAC
b. Start-up India: Tax Exemption under Section 56 of the Income Tax Act (Angel Tax)
Post getting recognition a Start-up by DPIIT may apply for Angel Tax Exemption. Aggregate amount of paid up share capital and share premium of the Start-up after the proposed issue of share, if any, shall not exceed INR 25 Crore.
Eligibility Criteria for applying to Income Tax exemption under Section 56:
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