Updated: 28-01-2025 at 6:42 AM
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India is ranked the first most populous country with 1.45 billion people and that means we have 1.45 billion minds continuously and consistently innovating and making the country climb the ladder of development and growth and one of the sectors that contributes to a greater extent to this growth is startups. The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised over 127,000 startups in its report published in April 2024 which suggests the magnified contribution it serves to India’s Gross Domestic Product (GDP).
The Indian Government established the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India Initiative to foster such an environment where startups can grow, attract, and nourish the country’s economy. This step of recognition was taken to encourage entrepreneurs to transform their business ideas into reality by bridging the gaps between innovation and communication and designing a habitable environment for startups to exist and survive.
DPIIT recognition is a certification issued by the Department for Promotion of Industry and Internal Trade which comes under the Ministry of Commerce and Industry. The DPIIT recognition is a part of the broader Startup India Initiative that is designed to nurture the growth of startups through numerous schemes and benefits like tax exemptions, smoother compliance, funding opportunities, and others.
There are certain guidelines issued by the Department for Promotion of Industry and Internal Trade that make startups valid or invalid to apply for a DPIIT recognition certificate and reap the benefits of the program:
The Startup needs to be registered as a private limited company, a partnership firm, or a limited liability partnership.
The business entity shouldn’t be more than 10 years old from the date of its incorporation.
The annual turnover of the Startup shouldn’t surpass INR 100 Crores from the date of its incorporation in any of the financial years.
The business entity shouldn’t have been formed by splitting or reconstructing an already existing business as it won’t be considered a startup.
The Startup should be aimed at creating innovative products and services and consistently work on their improvement to generate employment and further create wealth.
Follow the steps given below to register your startup for DPIIT recognition.
Registration as a Startup on the NSWS website is the first step.
Add ‘Registration as a Startup’ to Approvals on the NSWS dashboard. Click on ‘add more approval’ under which comes ‘central approval’.
Fill out the application form by clicking on ‘Apply now’ visible on your dashboard in a tabular form which would take you to the ‘Common Registration Form’.
Complete the form.
Once your application is successfully submitted on the NSWS portal, if comes rejected, you can apply again through the Startup India website by logging in,
You can access your application through the NSWS portal or the Startup India portal.
On the NSWS dashboard, click on the form row which will show the application status and the given DPIIT number.
A section called ‘Processing Detail’ is also there in case of any communication by the Startup India Initiative and if the application is approved, it also shows the DPIIT Recognition Certificate Number.
If you’re accessing the Startup India portal, click on DPIIT Recognition and it will show the status of the application.
Recognised startups can apply for tax exemption for three consecutive financial years out of the first ten years since the entity’s incorporation under Section 80-IAC of the Income Tax Act.
Recognized startups can access various government schemes to support and foster a healthy environment for their business.
They also reap the benefits of various procedures such as self-certification for 6 labor which means no inspection for 5 years in case of labor laws. In the case of environmental laws, if the startup falls under the ‘white category’, it can apply for self-certification for 3 environmental laws and only random checks would be carried out.
Recognized startups would also benefit from a fast-tracked patent application process and receive assistance from the government under the Intellectual Property Rights (IPR) scheme.
Recognized startups can sell their products and services directly to the government by registering on the Government e-Marketplace (GeM).
DPIIT Recognition is a great initiative set up by the Indian government to foster the growth and development of startups in India. It not only aims to create a healthy environment for the business to grow but also an easier paper-free process to be able to reap the benefits of the certification.
For any further queries, please contact NSWS through their helpline number 18001085841 or by filling the contact form.
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ALABACHAYA KHAN
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29 September 2024
ALABACHAYA
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