“Startups” as we all know is gaining popularity at a much accelerated pace, no wonder because of tremendous benefits it has to offer especially after the flagship initiative of the Government of India STARTUP INDIA. With objective of building a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities the startups remains the number one choice of both the government and the business fraternity.  

To elucidate further on the benefits of start-up following points must be glanced upon :  

  1. Tax Holiday for any consecutive 3 years out of initial 10 years
  2. Tax Exemption on investment above fair market value
  1. Tax Exemption on Long term capital gains under sec 54GB
  2. IPR Protection at a rebate of 80% and speedy examination
  3. Relaxed Provisions for set off and carry forward of losses under IT Act
  4. Venture Capital Assistance
  5. Access to Rs. 10,000 Crore Funds of Funds
  6. Benefits under Company law
  7. Government Public Procurement
  8. Self-Certification under Labour and Environmental laws
  9. Faster Exit for Startup


Start-up : An entity will be considered start-up till 10 years from incorporation. It will cease to be start-up if 10 years are completed or its T/O exceeds 100 crores.

How to be recognized as Start-up?

STEP-1 – Apply for Certificate of Recognition to DPIIT

STEP-2 – Apply for Certificate issued by Inter Ministerial Board for availing Tax benefits

Eligibilty :

  • Incorporation between 1st April 2016 – 1st April 2021
  • Must carry out “Eligible Business” – involving innovation or potential of employment generation or wealth creation
  • T/O within 25 crores in previous year
  • No dividends declared in any year


STEP-3 – Apply and explore for other benefits as elucidated above