Key takeaways
- Under the February 2026 notification, an entity can be recognised for up to 10 years from incorporation if turnover has never exceeded ₹200 crore.
- Deep-tech startups get up to 20 years and a ₹300 crore ceiling.
- Recognised startups incorporated before 1 April 2030 can apply for a 100% tax holiday for any 3 consecutive years out of their first 10.
- Angel tax was abolished for everyone from 2024-25, so recognition is no longer needed for that.
Who qualifies (2026 definition)
A notification of February 2026 (G.S.R. 108(E)) replaced the 2019 startup definition. To be recognised by DPIIT, an entity must be:
- A private limited company, LLP, registered partnership firm — or now a cooperative society.
- Up to 10 years old from the date of incorporation or registration (20 years for deep-tech startups).
- One whose turnover has not exceeded ₹200 crore in any financial year since incorporation (₹300 crore for deep-tech).
- Working towards innovation, development or improvement of products, processes or services, or a scalable business model with high potential for employment or wealth creation.
- Not formed by splitting up or reconstructing an existing business.
Proprietorships are not eligible. Recognition ends automatically once the entity crosses the age or turnover limit.
The tax holiday (old Section 80-IAC)
Recognition alone doesn't give the tax holiday — you apply separately for a certificate from the Inter-Ministerial Board. If granted, the startup can claim a 100% deduction of its profits for any 3 consecutive years out of the first 10 years from incorporation. Conditions:
- A private limited company or LLP incorporated on or after 1 April 2016 and before 1 April 2030 (extended by Budget 2025).
- Turnover not above ₹100 crore in the year the deduction is claimed.
- Choose the 3 years wisely: most startups only become profitable later, so claiming in the right window matters.
Approval rates have historically been low, so the application needs a clear explanation of the innovation and how it creates value.
Other benefits of recognition
- Self-certification under several labour and environmental laws, reducing inspections in the early years.
- Intellectual property support: fast-tracked patent examination, an 80% rebate on patent fees and reduced trademark fees, with facilitators' fees borne by the government.
- Public procurement: relaxation of prior-experience and prior-turnover criteria in government tenders, and exemption from earnest money deposits.
- Funding access: eligibility for the Fund of Funds for Startups, the Startup India Seed Fund and credit-guarantee schemes, and visibility to investors on the Startup India portal.
- Faster exit: startups with simple debt structures can be wound up on a fast-track basis under the Insolvency and Bankruptcy Code.
What about angel tax?
For years, DPIIT recognition was the main shield against "angel tax" — tax on share premium received above fair value. That tax was abolished for all companies from Financial Year 2024-25, so it's no longer a reason to get recognised. The benefits above still are.
How to apply
- Incorporate as a private limited company or LLP (or register the firm/cooperative).
- Create an account on the Startup India portal and fill in the recognition application.
- Describe the innovation: the problem, your solution, what's new about it and how it will scale. This write-up decides most applications.
- Upload the certificate of incorporation and supporting documents — pitch deck, website, patents or awards if you have them.
- DPIIT reviews the application; well-drafted applications are typically approved within a few weeks, and queries must be answered promptly.
Our Startup India practice has helped 487+ startups get recognised. We draft the innovation write-up, file the application and handle the queries — and apply for the 80-IAC tax holiday when you're ready. Visit startupindia.pravinjana.com.
Frequently asked questions
What is the turnover limit for DPIIT startup recognition in 2026?
₹200 crore in any financial year since incorporation, under the February 2026 notification. Deep-tech startups have a ₹300 crore limit.
How old can a company be to get Startup India recognition?
Up to 10 years from incorporation, or up to 20 years for deep-tech startups.
Does DPIIT recognition give a tax exemption automatically?
No. The 3-year tax holiday needs a separate certificate from the Inter-Ministerial Board, available to companies and LLPs incorporated before 1 April 2030 with turnover up to ₹100 crore in the year of claim.
Can a proprietorship get Startup India recognition?
No. Only private limited companies, LLPs, registered partnership firms and, from 2026, cooperative societies are eligible.
This guide explains the law in general terms as at November 2026. It is not advice for your specific situation — rules change with each Budget and their application depends on your facts.