Empowering Entrepreneurs: A Deep Dive into Startup India Initiative


Startup India, launched by Prime Minister Narendra Modi in 2015, is a flagship initiative aimed at fostering a vibrant ecosystem for startups in India.

The initiative provides a host of benefits and support mechanisms to entrepreneurs, encouraging innovation, job creation, and economic growth.

Benefits of Registering in Startup India:

  • Angel Tax Exemption: Startups registered under Startup India are exempt from Angel Tax, which taxes excess consideration received for issuing shares above their fair market value. This exemption facilitates funding during angel/VC rounds.
  • Tax Holiday: Eligible startups can enjoy a tax holiday for three consecutive years out of their first ten years, provided their turnover does not exceed Rs 25 crore per year. This helps reduce the initial financial burden on startups.
  • Capital Gains Exemption: Founders can invest long-term capital gains from the sale of residential property in registered startups without paying taxes. This incentivizes investment in startups, especially during the early stages.
  • Labour and Environment Law Self-Certification: Startups can self-certify compliance with certain labour and environmental laws for five years, reducing regulatory burden and promoting ease of doing business.
  • Intellectual Property Registration: Recognized startups receive subsidized fees for registering trademarks and patents. They also benefit from expedited examination of patent applications, promoting innovation.
  • Public Procurement Norm Relaxation: DPIIT-registered startups face fewer eligibility requirements when bidding for government contracts, facilitating their participation in public procurement.
  • Easy Company Winding Up: Startups meeting specified criteria can be wound up within 90 days under the Insolvency and Bankruptcy Code, streamlining the exit process for entrepreneurs.

Eligibility Criteria for Startup India:

To qualify as a startup:

  • The entity must be incorporated as a private limited company, partnership firm, or LLP in India, with a turnover not exceeding Rs 100 crore.
  • It should be working towards innovation, development, or improvement of products/services, or have a scalable business model with the potential for employment generation or wealth creation.
  • Entities formed by splitting or reconstructing existing businesses are not considered startups.

Application Process:

Startups can apply for Startup India certification through the DPIIT’s mobile app or portal. The application requires submission of the Certificate of Incorporation/Registration and a business write-up highlighting the innovative nature or scalability of the venture. DPIIT reviews the application and either recognizes the entity as a startup or provides reasons for rejection.


Startup India has emerged as a catalyst for entrepreneurship in India, providing a conducive environment for startups to thrive.

By offering a range of incentives, exemptions, and support mechanisms, the initiative empowers entrepreneurs to pursue their innovative ideas, thereby driving economic growth, job creation, and fostering a culture of innovation in the country.

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