Startup India (DPIIT) recognition for a PVT. LTD. or LLP: eligibility and benefits

A Private Limited Company or LLP can get Startup India recognition from DPIIT if it is up to 10 years old, its turnover has stayed below ₹200 crore in any financial year, and it is working on innovation or a scalable business model. Recognition is free and online, and it opens benefits such as self-certification under some labour laws, cheaper patent and trademark filing, and a route to a three-year income tax holiday.

DPIIT is the Department for Promotion of Industry and Internal Trade, under the Ministry of Commerce and Industry. It runs the Startup India programme. This post explains who qualifies and what recognition actually gives you, as of September 2026. The startup definition was revised by DPIIT's notification G.S.R. 108(E) in February 2026, so older articles online may quote outdated limits.

What is DPIIT recognition?

DPIIT recognition is an official certificate that your entity is a "startup" under the government's definition. It is separate from Company Registration. You first register your PVT. LTD. or LLP with the Ministry of Corporate Affairs, and then apply to DPIIT for recognition. Recognition does not change your legal structure or your compliance under the Companies Act or LLP Act — it only makes you eligible for certain schemes and exemptions.

Who is eligible for Startup India recognition?

Condition	General startup	Deep tech startup
Entity type	Private Limited Company, Partnership Firm, LLP or Cooperative Society	Same
Age	Up to 10 years from incorporation or Registration	Up to 20 years
Turnover	Less than ₹200 crore in any financial year since incorporation	Less than ₹300 crore
Business	Innovation, development or improvement of products, processes or services, or a scalable model with high potential for jobs or wealth creation	Solutions based on new scientific or engineering knowledge, with significant R&D and novel intellectual property
Origin	Not formed by splitting up or reconstructing an existing business	Same

A few points worth knowing:

• A Sole Proprietorship cannot be recognised, because it is not in the list of eligible entities. A proprietor who wants recognition usually has to form a PVT. LTD., LLP or Partnership Firm first. See the Proprietorship lessons.
• A Partnership Firm can be recognised, but the income tax holiday described below is available only to companies and LLPs.
• Recognition ends once the entity crosses the age or turnover limit.
• "Innovation" is judged on your application, not on your industry label. A plain trading or service business without anything new or scalable may not qualify.

How do you apply for DPIIT recognition?

1. Register the entity first — a PVT. LTD. or LLP through the MCA, or a Partnership Firm with the state Registrar of Firms.
2. Create a profile on the Startup India portal.
3. Apply for recognition online. Applications are processed through the National Single Window System.
4. Upload documents, mainly the certificate of incorporation or Registration and a clear write-up of how the business is innovative or scalable. Supporting material such as a pitch deck, website, patent or trademark filings helps.
5. Receive the certificate with a DPIIT recognition number, if approved. There is no government fee for recognition.

What are the benefits of DPIIT recognition?

1. Income tax holiday — with a separate certificate

An eligible startup that is a company or LLP, incorporated on or after 1 April 2016 and before 1 April 2030, can claim a deduction of 100% of profits for any three consecutive years out of its first ten years. This was Section 80-IAC of the Income-tax Act, 1961, and is Section 140 under the Income-tax Act, 2025, which applies from 1 April 2026. It is subject to a turnover limit in the year of claim, and it needs a separate certificate of eligible business from the Inter-Ministerial Board — DPIIT recognition alone is not enough. Many recognised startups never get this certificate, so do not plan your finances around it until you have it. Check the current conditions on the Income Tax Department website.

2. Angel tax is no longer an issue

Earlier, recognition protected startups from "angel tax" under Section 56(2)(viib), a tax on share premium above fair value. That provision was removed from assessment year 2025-26 by the Finance (No. 2) Act, 2024, and it is not in the new Act, so this benefit now matters mainly for past years.

3. Self-certification under labour and environment laws

Recognised startups can self-certify compliance under six labour laws — including the Employees' Provident Funds Act, the Employees' State Insurance Act and the Payment of Gratuity Act — and under three environment laws for "white category" activities. For labour laws, no inspections are normally conducted for five years except on a credible written complaint approved by a senior officer. The laws still apply; only inspections are relaxed.

4. Cheaper and faster patents and trademarks

• Patents: an 80% rebate on filing fees compared with other companies, plus expedited examination on request.
• Trademarks: startups pay the lower official fee that applies to individuals and small entities.
• Facilitators: government-empanelled facilitators help with filings, and their fees are borne by the government; the startup pays only statutory fees.

The Trademark Registration lessons explain the filing process.

5. Public procurement

Recognised startups can sell to government buyers through the Government e-Marketplace (GeM), are exempted from earnest money deposit, and manufacturing startups can be exempted from prior experience and turnover conditions in public tenders, subject to meeting quality and technical requirements.

6. Funding schemes and faster exit

• Access to the Startup India Seed Fund Scheme, the Fund of Funds for Startups, and the Credit Guarantee Scheme for Startups, each with its own eligibility rules.
• Under the Insolvency and Bankruptcy Code, 2016, a startup with a simple debt structure can be wound up within 90 days of filing an insolvency application.

PVT. LTD. or LLP — which is better for Startup India?

Both can be recognised and both can claim the tax holiday. The difference is funding. Most angel and venture capital investors invest by buying shares, and ESOPs can be issued only by a company, so a startup planning to raise equity usually chooses a PVT. LTD. An LLP suits partners who will fund the business themselves and want lighter compliance. Read the Private Limited Company lessons, the LLP lessons and our PVT. LTD. vs LLP vs OPC comparison page.

Recognition does not reduce yearly compliance. Annual filings, audit, GST returns and director KYC continue as usual — see the Life After Registration lessons.

Key takeaways

• A PVT. LTD., LLP, Partnership Firm or Cooperative Society up to 10 years old (20 for deep tech) with turnover below ₹200 crore (₹300 crore for deep tech) can apply.
• Recognition is free and online, and is separate from Company Registration.
• The three-year tax holiday is only for companies and LLPs and needs a separate Inter-Ministerial Board certificate.
• Other benefits include self-certification under labour laws, patent and trademark fee concessions, and easier public procurement.
• Recognition does not reduce annual compliance under company or LLP law.