This guide covers DPIIT startup recognition eligibility after the checker above: how to apply, what DPIIT reads in your application, and how to move on to the 80-IAC tax holiday. Under notification G.S.R. 108(E) of 4 February 2026, an eligible entity stays a startup for 10 years from incorporation (20 for deep tech), as long as turnover never crosses ₹200 crore (₹300 crore) in a financial year.
How to apply for DPIIT startup recognition
Recognition is applied for online through the National Single Window System at nsws.gov.in, using the "Registration as a Startup" form. The Ministry of Commerce and Industry charges no fee for the DPIIT certificate of recognition.
The steps, as set out on the Startup India recognition page and in the notification:
- Incorporate or register an eligible entity: a private limited company, an LLP, a partnership firm registered under section 59 of the Partnership Act 1932, or a co-operative society.
- Create an investor account on NSWS and log in.
- On the dashboard, go to "Add Approvals", then "Central Approvals", and add "Registration as a Startup".
- Fill in the form and attach the certificate of incorporation or registration and a write-up on how the business is innovative or scalable.
- DPIIT may ask for more documents or make enquiries. It then recognises the entity or rejects the application with reasons.
DPIIT has not appointed any agency or franchise for the certificate. The application should be filed by the startup in its own name, with its own mobile number and email. Advisers can prepare the write-up and documents, but the login stays yours.
What DPIIT looks for in the innovation write-up
The write-up must show that the business works towards innovation, development or improvement of products, processes or services, or that it is a scalable model with high potential for jobs or wealth creation. Of the Startup India registration criteria, this is the one the checker cannot verify for you, so it deserves the most care.
The notification does not prescribe a format. A useful guide is the evidence list in its own Form-1 for the tax holiday, which asks for:
- Product or service descriptions.
- IPR filings, such as patent or trademark applications.
- User or revenue growth figures.
- Awards and recognitions.
- Funding details.
- Employment data.
Write in plain language: the problem you solve, what is new in your approach, and the proof so far. Being young and small is not enough on its own; the write-up has to meet this test. A deep-tech applicant also has to show the extra attributes in the notification, such as high R&D spending and significant new intellectual property.
Worked example: recognition and tax holiday dates
The dates that matter run from the date of incorporation: recognition ends on the tenth anniversary, and the tax holiday must fall within the first ten financial years.
Example. Bluepeak Robotics Private Limited (a made-up company) was incorporated on 15 August 2022, and its highest turnover in any year is ₹4 crore. Recognition runs until 15 August 2032, so on 20 October 2026 it has 5 years 9 months left. Its tax holiday window is FY 2022-23 to FY 2031-32. Six of those years remain, and a 3-year block must start by FY 2029-30 to fit inside the window.
Compare a company incorporated on 1 June 2017. Its window ends with FY 2026-27, so a full 3-year block works only if it started in FY 2024-25 or earlier. Its recognition ends on 1 June 2027.
Recognition also ends early if turnover for any year exceeds ₹200 crore (₹300 crore for a recognised deep-tech startup). "Turnover" has the meaning in section 2(91) of the Companies Act 2013.
80-IAC tax holiday eligibility: getting the IMB certificate
Recognition does not give the tax holiday by itself. A recognised private limited company or LLP incorporated from 1 April 2016 to 31 March 2030 must apply in Form-1 to the Inter-Ministerial Board of Certification (IMB). With that certificate it can deduct 100% of profits for 3 consecutive years out of its first 10.
From tax year 2026-27 the deduction sits in section 140 of the Income-tax Act 2025, which replaced section 80-IAC of the 1961 Act. Section 140 allows turnover up to ₹300 crore in the year of the claim, against ₹100 crore under 80-IAC.
Form-1 asks for:
- Name, date of incorporation, incorporation number, address and nature of business.
- Contact details and PAN.
- Existing and proposed activities.
- MoA, LLP or partnership deed, and board resolution or registration details.
- Audited accounts for the last three financial years, where applicable.
- Supporting documents on innovation, wealth creation and employment.
Section 140 adds conditions of its own. The business must not be formed by splitting up or reconstructing an existing business, or by transferring used plant and machinery beyond 20% of the total value. Its accounts must be audited and the audit report filed by the date specified under section 63. The IMB can revoke a certificate obtained on false information, and it is then treated as never issued.
How the tax holiday fits with the 22% company tax option
A company claiming the section 140 deduction cannot use the 22% option under section 200 (115BAA of the 1961 Act), because that option bars Chapter VIII deductions other than sections 146 and 148. Section 140 is in Chapter VIII. Once chosen, the 22% option cannot be withdrawn.
Two practical points follow:
- Do not opt for 22% in your first return if you plan to claim the tax holiday on profits in your first ten years. The choice is permanent.
- Pick the 3-year block for the years you expect the highest profits. Section 140 lets you choose any three consecutive years out of ten.
The holiday removes profits from normal tax, but minimum alternate tax can still apply to a company on normal rates, and an LLP should check alternate minimum tax under section 206(2). Model the holiday years with a CA, and compare structures with the business tax comparison calculator.
What a recognised startup must not invest in
The 2026 notification adds conditions that last for the whole recognition period. A startup must use its funds mainly for its core business, innovation, research, scaling or operations, and must avoid certain investments unless they are integral to its business.
The restricted list under paragraph 5:
- A residential house, unless used for the business or held as stock-in-trade.
- Other land or buildings not occupied for the business or held as stock-in-trade.
- Loans and advances, unless lending is a substantial part of the business or made in the ordinary course.
- Capital contributions to other entities not tied to the business or its strategy.
- Shares and securities, other than treasury operations or the core business.
- High-value vehicles, aircraft or yachts not used for operations, leasing, hiring or as stock.
- Jewellery or other luxury assets not held as stock-in-trade.
- Any other speculative or non-productive asset the Central Government notifies.
Check this before parking surplus funds or buying property in the company's name.
Common mistakes in Startup India registration
Most rejections and lost benefits come from a few avoidable errors:
- Applying as a proprietorship or an unregistered partnership firm. Neither is eligible; incorporate or register first. The Business Structure Finder helps you pick.
- Assuming a One Person Company qualifies. The notification names a private limited company, so confirm with DPIIT before applying as an OPC.
- Testing only the latest year's turnover. The limit applies to every financial year since incorporation.
- Treating recognition as the tax holiday. The IMB certificate is a separate application.
- Expecting a partnership firm or co-operative to get the tax holiday. Only a company or LLP can.
- Paying anyone a "government fee" for recognition. There is none.
After recognition, many startups move on to trademark filing, where recognised startups get a fee rebate; the trademark class finder shows which classes to file in.
How Ofin can help
We check eligibility, draft the innovation write-up, assemble the documents and support you through the NSWS filing in your own account, and later prepare Form-1 for the IMB. Startup India registration support starts at ₹3,899. If you still need an eligible entity, we register a private limited company from ₹8,999.
