Startup India Certificate (SIC)
The Startup India Scheme was introduced by the Government of India in 2017. It supports startups and allows them to grow further.
The Startup India Scheme gives benefits like funding and tax exemptions, and simplifies compliance.
All the DPIIT recognised companies are eligible for these benefits, such as Funding, tax exemption, compliance, etc.
SIC
Startup India Certificate is a flagship initiative launched by the government of India on 16th December 2016 that aims to boost the startup culture, build a strong startup ecosystem and support startups with various benefits like exemption in tax filing, simplifying compliance processes and support in funding. To obtain seed funding, Startup India registration is required; it recognises the business from the Department for Promotion of Industry and Internal Trade DPIIT.
Who can OPT Startup India Certificate?
Business Type: To opt for the Startup India Certificate a business needs to incorporate Private India Limited, a Limited Liability Partnership or a Partnership Firm under the Indian Companies Acts.
Age of Business: The startup should be running under 10 years of Incorporation.
Annual Turnover: The annual turnover of the startup should not be more than 100 crore in any financial year from its incorporation.
Business Approach: The startup should be working towards innovation, development and commercialised products and Services.
DPIIT Recognition: A SIC holder startup is recognised by the Department for Promotion of
Not Eligible:
- A sole proprietorship.
- The business should not have been formed by splitting up or reconstructing an existing enterprise.
- Turn over more than 100 Crore in any year.
- Existence is more than 10 years of incorporation.
Benefits of Startup India Certificate
Tax Exemption: The DPIIT-recognised startups are eligible for income tax exemption for the first three years of company incorporation under section 80 IAC and angel tax exemption which helps the early-stage startups for external investtment under 56 of the Income Tax Act and of the Income Tax Act.
Funding Support & Government Grants: Recognised startups get access to the Fund of Funds for Startups (FFS) managed by SIDBI, along with multiple government grants, challenge programs, and incubator funds. This increases opportunities to secure early-stage financial support.
Faster Patent & IPR Processing: DPIIT-recognised startups receive 80% rebate on patent filing fees and faster IPR examination. This helps protect innovations quickly and at a much lower cost, which is crucial for technology-driven and product-based businesses.
Easy Winding Up: Under the Startup India initiative, startups can wind up operations within 90 days through a simplified exit process. This saves time, reduces legal hassles, and allows founders to restart or pivot into new ventures more easily.
Self-Certification Compliance: Startups recognised under Startup India can self-certify their compliance with key labour and environmental laws. This reduces the need for frequent inspections, lowers compliance pressure, and allows founders to focus more on business growth instead of paperwork.