HOW TO APPLY FOR A DPIIT REGISTRATION NUMBER IN INDIA

INTRODUCTION

Indian startup ecosystem has witnessed significant growth over the past decade. In response to this innovation and startup activity surge, the Government of India launched the Startup India scheme in 2016. This flagship initiative aims to build a robust ecosystem for nurturing innovation, driving sustainable economic growth, and generating large-scale employment opportunities. At the heart of this scheme lies the DPIIT registration, which officially recognizes eligible startups and provides various benefits, including tax exemptions, funding access, and regulatory support to growing startups.

This article explores the DPIIT registration process, Startup India scheme, and the documents required for DPIIT registration, providing a complete guide for aspiring entrepreneurs seeking Startup India recognition.

If you’re looking for end-to-end assistance, TMWala can help you navigate the entire registration process and make your compliance journey seamless.

UNDERSTANDING DPIIT AND THE STARTUP INDIA SCHEME

The Department for Promotion of Industry and Internal Trade (DPIIT) functions under the Ministry of Commerce and Industry. It plays a crucial role in formulating and implementing promotional and developmental measures for the growth of new startups.

Through the Startup India scheme, DPIIT encourages entrepreneurship by offering various benefits to government-recognized startups. These benefits include income tax exemptions, self-certification for labour and environmental laws, easier public procurement norms, and access to funding through dedicated government funds.

The Startup India scheme is not only an enabler for new businesses but also a transformative initiative aimed at making India a global hub for innovation and entrepreneurship.

DPIIT REGISTRATION PROCESS: STEP-BY-STEP GUIDE

There is a structured process through which a startup can be recognized by DPIIT. Below are the specifics of the DPIIT registration procedure:

Step 1: Meet Eligibility Criteria

The startup needs to meet the requirements listed below:

• Incorporation time: The startup must have been founded no more than ten years before the incorporation date.
• Type of Entity: Must be registered as:
  • A Private Limited Company under the Companies Act, 2013
  • A Partnership Firm under the Indian Partnership Act, 1932
  • A Limited Liability Partnership (LLP) under the LLP Act, 2008
• Turnover: No financial year since incorporation should see a total of more than ₹100 crores.
• Innovative Nature: The business should be focused on innovation, development, improvement of products/services, or possess a scalable business model with high potential for employment and wealth creation.
• No Business Reconstruction: A startup shouldn’t be created by dismantling or rebuilding an already-existing company.

Step 2: Register Your Start-Up

Ensure your startup is legally registered under applicable Indian laws. Depending on your business structure, registration should be completed with:

• Ministry of Corporate Affairs (for Private Limited Companies and LLPs)
• Registrar of Firms (for Partnership Firms)

Step 3: Create an Account on the Startup India Portal

To begin the application for Startup India recognition, visit the Startup India portal:

• Select “Register” to start making a new user profile.
• Enter information like the owner’s name, email address, and phone number.
• Enter the login credentials and use the OTP to confirm the account.

Step 4: Apply for DPIIT Recognition

Once logged in:

• Navigate to the “DPIIT Recognition” tab under “Startup Recognition.”
• Select “Registration as a Startup” on the National Single Window System (NSWS).
• Provide the following information on the online application form:
  • Company Information: Name, incorporation date, PAN, address, etc.
  • Director/Partner details
  • Business overview and activity description
  • Industry sector and objectives of your startup

TMWala can help you prepare the right documentation, keep your documents in a compiled form, and fill out application forms accurately to improve your chances of approval.

Step 5: Upload the Required Documents

A crucial step in the DPIIT registration process involves uploading supporting documents. The documents needed for DPIIT registration are listed below.

1. Certificate of Incorporation or Registration: Evidence of the establishment of the business
2. Company PAN Card: Issued by the Income Tax Department.
3. Pitch Deck or Business Plan: A document explaining your business idea, scalability, and innovation.
4. Intellectual Property Details (if any):  Patents, trademarks, copyrights related to your startup.
5. Proof of Funding (if applicable): Investment agreements or revenue data.
6. Awards & Recognitions (if any): testimonials from clients that demonstrate trustworthiness.
7. Declaration Letter: Stating eligibility as per DPIIT norms.

To prevent any delays or rejections, make sure that all uploaded papers are readable and clear.

Step 6: Submit the Application

After filling out the application and uploading documents:

• Review all entered information.
• Click ‘Submit’ to complete the application.
• A unique reference number will be generated, which can be used to track the application status on the portal.

Step 7: Application Review and Approval

• DPIIT officials will scrutinize the application and documents.
• If additional information is needed, they will reach out via registered email.
• Upon successful verification, a DPIIT Certificate of Recognition will be issued and emailed to the applicant.
• The certificate can also be downloaded from the Startup India portal.

DPIIT REGISTRATION CERTIFICATE

Startups are entitled to additional tax and compliance-related incentives after receiving the DPIIT registration certificate. The most important ones are:

• Section 80 IAC Tax Exemption: Within the first ten years, submit a separate application for income tax exemption for three years in a row.
• Section 56 Exemption (Angel Tax): Tax exemption for funds obtained from angel investors.

Applications for both exemptions can be made via the Startup India portal after receiving DPIIT recognition.

TMWala can help you apply for these post-recognition exemptions by guiding you through documentation and compliance filing.

BENEFITS OF DPIIT REGISTRATION

Startups that receive DPIIT registration can unlock a range of benefits, such as:

• Income Tax Exemption under Section 80 IAC for three consecutive years out of the first ten years.
• Exemption from Angel Tax under Section 56(2)(VIIB) of the Income Tax Act.
• Easier access to public procurement, with exemptions from Earnest Money Deposit (EMD), prior experience, and turnover requirements.
• Faster IPR (Intellectual Property Rights) processing and rebates in patent and trademark application fees.

Access to government funds of ₹10,000 crore through Alternative Investment Funds (AIFs) and credit guarantee schemes for loans.

DOCUMENTS REQUIRED FOR DPIIT REGISTRATION

• Certificate of Incorporation/Registration: Proof that the startup is legally registered as a Private Limited Company, LLP, or Partnership Firm.
• Company PAN Card: Issued by the Income Tax Department, used for identity and verification purposes.
• Pitch Deck or Business Plan: A detailed document explaining the startup’s business model, innovation, scalability, and market potential.
• Intellectual Property Details (if any): Patents, trademarks, or copyrights registered in the name of the startup to showcase innovation.
• Proof of Funding (if applicable): Investment documents such as term sheets or funding agreements from investors.
• Awards or Certificates of Recognition (optional): Any recognitions received that establish credibility and achievements.
• Declaration of Startup Eligibility: A self-declaration confirming the startup meets DPIIT’s eligibility criteria.

STARTUP INDIA RECOGNITION

Recognized startups can streamline their regulatory journey using the National Single Window System (NSWS). This platform allows for:

• Applications for various central and state government approvals.
• Registrations under labour laws, environmental laws, GST, and more.
• Monitoring and tracking the status of multiple regulatory submissions in one place.

This centralized system simplifies operations and reduces the time spent on procedural bottlenecks, helping startups focus on core business activities.

CONCLUSION

The Startup India scheme and DPIIT registration are game-changers for India’s startup ecosystem. Through a simplified application process, substantial tax benefits, access to government funding, and support for regulatory compliance, the initiative empowers entrepreneurs to build scalable and sustainable businesses.

If you’re a founder looking to take your startup to the next level, obtaining Startup India recognition through DPIIT is a vital first step. With clear eligibility criteria, digital application procedures, and government support, India is steadily positioning itself as a global leader in innovation and entrepreneurship.

And with partners like TMWala, you can ensure a smooth, error-free process from registration to post-recognition benefits.