Get exemplary benefits & exemptions with Startup India Certificate
Every Startup Company with innovation & unique business ideas can apply for the Startup India Certificate issued by DPIIT.
Startups will enjoy several privileges offered under Startup India Scheme.
WHAT IS THE STARTUP INDIA CERTIFICATE OF RECOGNITION?
With a view to boost the Indian economy and encourage entrepreneurship, the Government of India, under the administration of the Ministry of Commerce & Industry, had begun the Start-up India Stand-up India initiative in 2015 to uplift and grow the Indian start-ups.
WHO IS NOT ELIGIBLE FOR STARTUP INDIA RECOGNITION?
- Sole Proprietorship
- Firm constitute by the notary partnership deed
- Once annual turnover exceeds INR 100 crores
- Company is older than 10 years.
ELIGIBILITY CRITERIA FOR STARTUP INDIA CERTIFICATE
The Startup should be a
- Private limited company or
- Registered Partnership firm or
- Limited liability partnership
The company should be newly incorporated and should not be formed by splitting up or reconstruction of an existing business.
Turnover should be less than INR 100 Crores in any of the previous financial years.
An entity shall be considered as a startup up to 10 years from the date of its incorporation
The business concept should be unique driving towards innovation or bringing improvement of existing products, services and processes and
A startup should have the potential to generate employment/ create wealth.
3 LAYERS OF STARTUP INDIA CERTIFICATE RECOGNITION
Issuance Of Startup India Certificate
- On receipt of an application, DPIIT issues a Startup India certificate to the newly incorporated company after validating the unique business process and other eligibility criteria.
Angel Tax Exemption On Equity Investment
- An investment made on startup by investors on the premium is exempt from tax u/s 56(2)(viib) of the Income Tax Act if a startup is further approved by the Inter-Ministerial Board.
- This exemption is valid till startup paid-up share capital + share premium does not exceed INR 25 crore.
- For availing angel tax exemption, a startup needs to file a declaration under Form-2 to DIPP.
Income Tax Exemption
- The startup will get any 3 consecutive years tax holiday out of ten years tenure.
- For income tax exemption u/s 80-IAC, Startup needs to file a separate application under Form-1 and the Income Tax authority shall grant the certificate or reject the application.
- This application can be filed only after the issuance of a Startup India Certificate.
THE VALIDITY OF STARTUP INDIA CERTIFICATE
An entity shall cease to be a Startup on completion of ten  years from the date of its incorporation/ registration
If its turnover for any previous year exceeds one hundred  crore rupees.
Whichever is earlier.
STARTUP INDIA CERTIFICATE VERIFICATION
Once applied for the startup india registration, you will receive an acknowledgment receipt number (ARN) for tracking your certificate status.
Once your Startup India application is successfully processed, you can easily download your Start-up India certificate.
TAX EXEMPTION U/S 80 IAC
Post getting recognition under startup India scheme, you may apply for Tax exemption u/s 80 IAC of the Income Tax Act.
A Startup can avail tax holiday for 3 successive financial years during its first 10 years of startup eligibility.
Criteria for applying to 80IAC Tax exemption :
- Must be a recognized Startup
- Only Private limited or LLP is eligible
- Must be incorporated on or after 1st April, 2016
ANGEL TAX EXEMPTION U/S 56
After startup india registration, you may apply for Angel Tax Exemption.
Criteria for Angel Tax Exemption u/s 56 of the Income Tax Act 1961:
- The entity must be a DPIIT recognized Startup
- Aggregate amount of paid up share capital & share premium after the proposed issue of shares, must not exceed INR 25 Crore.