Overview
The Department for Promotion of Industry and Internal Trade (DPIIT), formerly known as the Department of Industrial Policy and Promotion (DIPP), offers DIPP registration primarily to startups to encourage innovation and entrepreneurship in India. DPIIT registration enables startups to gain recognition from the government, access various benefits, and participate in programs specifically tailored to boost startup growth. Under the DPIIT Startup India initiative, startups benefit from tax exemptions, easier compliance requirements, and access to government funding.
Overview
The Department for Promotion of Industry and Internal Trade (DPIIT), formerly known as the Department of Industrial Policy and Promotion (DIPP), offers DIPP registration primarily to startups to encourage innovation and entrepreneurship in India. DPIIT registration enables startups to gain recognition from the government, access various benefits, and participate in programs specifically tailored to boost startup growth. Under the DPIIT Startup India initiative, startups benefit from tax exemptions, easier compliance requirements, and access to government funding.
Benefits
- Income Tax Exemption: DPIIT-recognized startups can avail of a three-year income tax exemption under Section 80IAC of the Income Tax Act, provided they meet specific conditions.
- Access to Government Funding: DPIIT-registered startups have access to government funding, including the Startup India Seed Fund Scheme and Fund of Funds for Startups (FFS).
- Easy Access to Public Procurement: DPIIT registration enables startups to apply for government tenders with relaxed requirements for prior experience or turnover.
- Self-Certification Compliance: DPIIT-recognized startups can self-certify their compliance with specific labor and environmental laws, reducing compliance costs.
- Credit Guarantee Schemes: Startups are eligible for government-backed credit guarantees, which help them secure loans without requiring collateral.
- Fast-Track Patent Registration: DPIIT-registered startups receive a 50% rebate on patent fees and access to a fast-track patent application process.
- Eligibility Criteria for DPIIT Registration: For a business to qualify for DPIIT registration as a startup, it must meet the following criteria:
- Age of the Company: The entity should be less than 10 years old from the date of incorporation.
- Type of Entity: The company must be a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP).
- Annual Turnover: The turnover should not exceed ₹100 crore in any of the financial years since incorporation.
- Innovation and Scalability: The business should be working towards innovation, improvement of products or services, or have a scalable business model with a high potential for job creation.
- Exclusions: Entities formed through restructuring or splitting of an existing business are not eligible.
- Certificate of Incorporation: Proof of the company’s incorporation, issued by the Registrar of Companies (ROC).
- PAN Card of Business: The business PAN card issued by the Income Tax Department.
- Directors/Partners Details: Names, addresses, and contact details of all directors or partners.
- Business Pitch Deck: A brief description or presentation about the business, explaining the product, service, and market potential.
- Intellectual Property Details (if applicable): Any patents or trademarks held by the company.
- Funding Details (if applicable): Information about any existing funding received, including investor names and investment amounts.
- Website Link/Product Video (Optional): A website link or a short video showcasing the product or service is recommended for added context.
- Annual Report Submission: DPIIT-registered startups must submit an annual progress report, detailing their business activities and financials.
- Income Tax Compliance: Startups availing tax exemptions under Section 80IAC must maintain accurate income records and ensure timely tax filings.
- Annual Compliance Filings: Private limited companies and LLPs must comply with annual MCA filings, including filing financial statements and annual returns.
- Self-Certification for Compliance: DPIIT-registered startups must periodically self-certify their compliance with labor and environmental laws, including laws related to payment of wages, maternity benefits, gratuity, and environmental safety.
- Renewal and Updates on Startup India Portal: Startups must keep their DPIIT profile updated with any changes in business structure, revenue, or team.
- IPR Compliances (if applicable): Startups must follow intellectual property compliance, including renewal of patents or trademarks and payment of any associated fees.
- Penalties for Non-Compliance: Revocation of Benefits: Failure to comply with DPIIT regulations may result in the loss of tax benefits, funding eligibility, and access to other government incentives.
- Penalty for False Information: Providing false or misleading information during registration may lead to suspension of DPIIT recognition and legal action.
- Late Fee for Tax Filings: Late tax filings or non-compliance with income tax regulations may incur penalties as per Income Tax Department rules.
- MCA Compliance Penalties: Private limited companies and LLPs failing to comply with MCA filing requirements are subject to late fees, fines, and possible deregistration.
Why Choose GAFinTax for Your Convert a Sole Proprietorship to Private Limited Company
We make technical compliance certifications effortless and convenient.
0
+
Happy Customers
0
+
Rated on Google
Top 0
%
of Industry Professionals
0
%
Satisfaction Guaranteed
Get started?
We also help you market your products through an online marketplace.