Starting a business in India is a brave move, but it often comes with a tight budget. Every rupee saved is a rupee earned.

Many entrepreneurs have heard of the “Startup India” initiative launched by the Government of India, but very few understand how to actually extract value from it. It is not just a fancy certificate to hang on your wall; it is a gateway to massive financial and operational advantages.

At Finwise Hub, we help dozens of founders get DPIIT-recognized every month. Here is why you should prioritize this registration right after your incorporation.

1. The 3-Year Income Tax Holiday (Section 80-IAC)

This is the biggest attraction. Eligible startups can apply for a 100% tax exemption on their profits for 3 consecutive years out of their first 10 years.

• Why it matters: In the early growth years, retaining your profit means you can reinvest it back into hiring, marketing, or product development without giving a chunk to the tax department.

 

2. Exemption from “Angel Tax”

Raising funds? You need this. Traditionally, if a startup raised capital at a valuation higher than its “Fair Market Value,” the difference was taxed as income (Angel Tax).

• The Benefit: DPIIT-recognized startups are exempt from this tax liability (Section 56(2)(viib) of the Income Tax Act). This makes your startup much more attractive to angel investors.

 

3. 80% Rebate on Patent & Trademark Costs

Innovation needs protection, but Intellectual Property (IP) can be expensive. Under the Startup India scheme, you get substantial discounts on government fees:

• 80% rebate on Patent filing fees.

• 50% rebate on Trademark filing fees.

• Fast-tracking: Your patent applications are examined on a priority basis, cutting down approval time significantly.

 

4. Self-Certification (Less Harassment)

New businesses often fear the “Inspector Raj.” To reduce this burden, Startup India allows you to self-certify compliance for 6 Labour Laws and 3 Environmental Laws.

• The Benefit: No inspections will be conducted for a period of 3 to 5 years, giving you peace of mind to focus on business rather than bureaucracy.

 

5. Easier Public Procurement

Want to work with the government? Usually, government tenders require businesses to have “prior experience” or a high “turnover.”

• The Benefit: For recognized startups, the government waives off the condition of prior turnover and experience. You can bid for big government projects even if you are a new player.

Is Your Business Eligible?

To get these benefits, your entity must meet these criteria:

1. Age: It must be incorporated for less than 10 years.

2. Type: It must be a Private Limited Company, LLP, or Registered Partnership.

3. Turnover: Annual turnover must not exceed ₹100 Crores.

4. Innovation: You must be working towards innovation, development, or improvement of products/services (i.e., not just a standard trading business).

How Finwise Hub Can Help

Getting the “Certificate of Recognition” from DPIIT involves detailed documentation. A single error in your pitch deck or form can lead to rejection.

At Finwise Hub, we streamline the entire process:

• We review your business model for eligibility.

• We draft the required write-ups and pitch decks.

• We file the application and handle queries from the department.

Don’t leave money on the table. Claim your Startup India status today.