Structured Biiz

Startup India License

Startup India License has been introduced to reduce the regulatory burden on Startups, thereby allowing them to focus on their core business and keep compliance costs low.

Recognition as a Startup with the DPITT

An entity (Private Limited Company / Limited Liability Partnership) shall be considered as a Startup:

Process for obtaining Startup India Recognition?

Key Benefits

An eligible Startup can claim a deduction of 100% of taxable income (Minimum Alternate tax provisions shall still apply) for 3 consecutive years out of 7 years from the date of incorporation.

The applications will be fast-tracked so that the value of business can be realised sooner by an eligible Startup.

The facilitators will be assisting in the filing of applications. The cost of the same shall be borne by the Government.

Startups shall be provided with an 80% rebate in filing of patents vis-a-vis other companies. This will help them pare costs in the crucial formative years.

  • This is to ease the shut down or wind up operations of the Startups. This will allow the entrepreneurs to reallocate capital and resources to more productive avenues faster;
  • To encourage entrepreneurs to experiment with new and innovative ideas without facing complex exit processes where their capital stuck in case of business failure;
  • As per the Insolvency and Bankruptcy Code, 2016, Startups with simple debt structures, it can be wound up in 90 days of filing the application for insolvency.
  • An Insolvency Professional can be appointed for the Startup who can be in charge of the company including liquidation of its assets and paying its creditors within six months of such appointment.
  • It is responsibility of the insolvency professional to the closure of the business, sale of assets and repayment of creditors in accordance with the distribution waterfall set out in the IBC.


Recognised Start Ups that can claim a certification under Section 80-IAC of the Income Tax Act, 1961

* Note that earlier the limit was only INR 25 Crores. Thus, there was a mismatch in the turnover limit of an eligible Startup under the Income Tax Act and under the DPIIT regulations. Thus, the limit was increased to INR 100 Crore to bring the limit under Income Tax Act at par with DPIIT regulations.

Further, an eligible Startup registered as a Partnership Firm is not eligible for obtaining certificate under Section 80-IAC of the Income Tax Act, 1961.

Process for obtaining certificate u/s 80IAC of the Income Tax Act, 1961

Start Up India License Registration Service

Filing of application with Startup India for recognition as an eligible Startup - Rs. 3,999/-

Inclusive of GST

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