Which Startups are Eligible for Startup India Registration?

Eligible Business Structures: Startups must be registered as a Private Limited Company, LLP, or Partnership Firm. Business Age Limit: The business should not be older than 10 years from incorporation. Turnover Requirement: The annual turnover should be less than INR 100 crores. Innovation & Scalability: The startup should focus on innovation, development, and scalability. Original Formation: It should not be formed by splitting or restructuring an existing business. DIPP Recognition: Startups need DPIIT recognition to avail benefits. Key Benefits: Tax exemptions, simplified compliance, government funding, IPR support, and fast-tracked patent applications. Conclusion

Business Jan 27, 2025 13 Add to Reading List

Startup India registration is a government initiative aimed at promoting entrepreneurship and innovation by providing various benefits to eligible startups. However, not all businesses qualify for this scheme. Here’s a detailed look at the eligibility criteria for Startup India registration.

1. Business Structure Requirements

A startup must be registered as one of the following entities:

Private Limited Company under the Companies Act, 2013
Limited Liability Partnership (LLP) under the LLP Act, 2008
Partnership Firm under the Indian Partnership Act, 1932

2. Age of the Business

The business should not be more than 10 years old from the date of incorporation.

3. Turnover Limit

The startup's annual turnover should not exceed INR 100 crores in any financial year since its incorporation.

4. Focus on Innovation & Scalability

To qualify for Startup India registration, the business must be engaged in:

Innovation, development, or improvement of products, services, or processes
A scalable business model with the potential for wealth and employment generation

5. Original Business Formation

The entity should not be formed by splitting or reconstructing an already existing business.

6. DIPP Recognition

Startups need to apply for recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) to avail benefits under the Startup India registration program.

Benefits of Startup India Registration

Once a startup qualifies for Startup India registration, it can access numerous benefits such as:

Tax exemptions (including exemption under Section 80 IAC for eligible startups)
Self-certification for labor and environmental laws
Simplified compliance procedures
Government funding & incentives
Fast-tracked patent application & IPR support

Conclusion

Registering under the Startup India registration scheme provides numerous financial and operational benefits, enabling young businesses to scale efficiently. If your startup meets the eligibility criteria, applying for recognition can help in availing government support and incentives.