Real-World Scenarios & Access

What tax benefits and exemptions do DPIIT-recognised startups actually get?

A starting point

Two big ones: the Section 80-IAC tax holiday (100% profit deduction for any 3 consecutive years out of your first 10, if approved by the inter-ministerial board) and the Section 56(2)(viib) 'angel tax' exemption so premium share issuances to investors aren't taxed as income. You also get self-certification under 9 labour and 3 environment laws and IPR fee rebates. Apply for 80-IAC and 56 separately on the Startup India portal after you're recognised, recognition alone doesn't auto-grant the tax holiday.

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India Free Beginner

DPIIT Startup Recognition & Tax Exemption (Startup India)

From startupindia.gov.in by Startup India / DPIIT Official portal page

Why we picked it

The official source for DPIIT recognition, the free registration that unlocks tax benefits, self-certification, and scheme eligibility for Indian startups. Straight from the government, not a middleman.

  • Recognition is free and often approved within days
  • Unlocks tax exemptions, labour-law self-certification, and faster IP processing
  • Eligible entities: Pvt Ltd, LLP, partnership, or cooperative under 10 years old
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Razorpay Rize, Incorporation & Early-Stage Founder Resources

From Razorpay (razorpay.com/rize) by Razorpay Rize Platform + resources

Why we picked it

Most government grants require an incorporated entity, and Rize makes getting one fast and low-friction, Pvt Ltd, LLP, or OPC without the usual CA runaround. It's a practical bridge for student and idea-stage founders who need an entity before a scheme will look at them.

  • Handles Pvt Ltd / LLP / OPC incorporation, the entity type most Indian schemes require before you can apply.
  • Choose Pvt Ltd if you plan to raise or apply to SISFS; LLP or OPC if you're solo and compliance-light.
  • Bundles a curated investor list, templates, and founder content useful once your grant PoC is validated.
  • Incorporation is a means to an end here, do it when a specific scheme demands an entity, not before you need it.
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