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Startup Related Services - DIPP

In 1995, Department of Industrial Policy and Promotion was setup, regulated under Ministry of Commerce and Industry, Government of India. It is involved in policy formulation and execution of the promotional and growth measures of the industrial sector. DIPP is also accountable for IPR and related activities for their promotion and protection.

An entity will be recognized as start-up:
  • On the off side that it is joined as a private constrained organization or enrolled as an association firm or a restricted obligation organization in India.
  • In the event of that its turnover for any of the budgetary years since joining/enrolment has not exceeded INR 100crs.
  • In the event that it is moving in the direction of advancement, improvement or improvement of items or procedures or administrations, or on the off chance that it is a handy plan of action with a high competence of work age or assets creation.
  • An entity framed by separating or recreation of a business as of now in presence will not be viewed as a 'Startup'.

Every startup strives for maximising profits and gaining the markets, which in turns become costlier than they expect. As 30% of the earnings turning as outflows in the form of taxes to the government by the start-ups, these outflows can be eliminated for 3 years by just getting registered with the Start-up Indian Initiative. The following are the conditions a start-up should fulfil to save the taxes for 3 years. They are as follows:

  • DIPP grants Start-up recognition and inter-ministerial board of certification will provide the approval of tax benefits.
  • Both the companies and LLPs registered on or before 1 st of April 2016 having the turnover less than 25 crores, can avail the tax benefits for which the provision is present in Income Tax act, 1961 under section 80 IAC.
  • Registered partnership cannot avail tax benefits but are considered under normal start-up scenario.
  • Tax benefit will remain consistent throughout the 3 years. Start-ups should make a choice on for which lot of 7 years the 3 year tax benefits will be availed.
Process

Following are the steps to get registered under DIPP

  • Firstly incorporating a business
  • Registering under Start-up India Scheme
  • Providing with the documents required
  • Choosing whether to have tax benefits or not
  • Self –certifying the documents
  • Receiving the recognition number
  • IPR and Funding requirements