Lack of Innovation or Value Proposition Applications that fail to demonstrate how the product or service is innovative, technology-driven, or solving a real problem are often declined.
Weak or Generic Business Description A poorly written or vague explanation of the business model, target market, or operational approach reduces credibility in the eyes of the evaluators.
Ineligible Business Type or Age Startups that are older than 10 years or registered as sole proprietorships, or that exceed the ₹100 Cr turnover limit, are automatically disqualified.
Missing or Incomplete Documents Failure to submit a clear pitch deck, incorporation certificate, or other required documents can lead to immediate rejection.
Business Formed Through Restructuring If the business has been formed by splitting or restructuring an existing company without genuine innovation, it will not be recognized under the scheme.
Tax Exemption The entity registered under the Startup India Scheme can apply for an exemption of income tax under section 80 IAC of the Income Tax Act. Such an entity can avail tax exemption for 3 consecutive financial years out of first 10 years from the date of incorporation provided following conditions are fulfilled: An entity shall be a Private Limited Company or Limited Liability Partnership. It shall be incorporated between 01st April 2016 to 01st April 2021.
Angel Tax Exemption The Startup India recognized entity can avail tax exemption benefit from the funds received as angel investment. The exemption is only granted if the total amount of paid-up share capital and share premium does not exceed Rs. 25 Crore after the proposed issue of share. To avail this exemption the entity need to fulfil some conditions for investing in certain assets.
Rebate in Trademark & Patent Fees All the startups registered under this scheme can claim a rebate on the government fees for filing a trademark application. And up to 80% rebate in Patent applications and can avail the benefit of fast track patent application. Entire fees of Facilitators for any number of Patents, Trademarks or Designs a Startup may file, shall be borne by the Government. Hence Startups will have to bear the cost of Statutory Fees only.
Self Certification Startups can self certify the compliance under 6 Labour Laws and 3 Environmental Laws for 5 years from the date of incorporation. This provision minimizes inspection-related hurdles, encourages ease of doing business, and promotes operational freedom in early stages.
Government Tenders Registering an entity under the DIPP recognition scheme enable Startups to apply for Government tenders. One of the requirements of having minimum prior experience/turnover for filing the government tender by the companies is not applicable to the companies registered under the StartUp India scheme. Startups recognised under DIPP have been exempted from submitting Earnest Money Deposit (EMD) while filing government tenders.
Interaction Platform for Startups Networking is an essential key for any entrepreneur to get recognition in the market and among other industry peers. After registering under the DIPP scheme, the startups get a platform to meet other startups, well-known speakers, investors etc. at various fests and summits organized by Government at a huge scale. Startups recognised under DIPP can register on Government e-Marketplace as a seller and sell their products and services directly to Government Entities.
Fund of Funds for Startups The startup can raise funds and capital through the fund of funds initiative by Startup India. DIPP has proposed to release Rs.10,000 crore for Startups through this scheme. Small Industries Development Bank of India shall provide funds to Startups approved by Implementing Agencies.
Faster Exit The startup entities registered under Ministry of Corporate Affairs (MCA) i.e A Private Limited Company and an LLP will be wound up on a fast track basis. Under the Insolvency and Bankruptcy Code,2016, Startups with simple debt structure or those meeting certain income specified criteria can be wound up within 90 days of filing an application for insolvency.
