Start Up India Scheme
4 min read
May 28, 2025

Start Up India Scheme

Startup India initiative is a scheme by the Department for promotion of Industry and Internal Trade, Government of India to promote the growth of Indian startups by lowering the burden of regulations on them and giving them access to Startup India scheme loan.

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Start Up India Scheme: Startup India initiative is a scheme by the Department for promotion of Industry and Internal Trade, Government of India to promote the growth of Indian startups by lowering the burden of regulations on them and giving them access to startup india scheme loan.

Startup India scheme launch date is January 16, 2016. It can be eligible for all if they fulfill the criteria.

Startup India Benefits

Start Up India provides a range of benefits, including online self-certification of compliance with 6 labour laws and 3 environmental laws. Moreover, the firm can only be inspected on the basis of labour laws in the case of a written, verifiable, valid complaint ratified by an officer senior to the inspecting officer. In addition, the industries marked in ‘White category’ (meaning, the industrial sectors considered ‘practically non-polluting’ by the Central Pollution Control Board during 2016 categorization) can self-certify compliance with the regulations, and only occasional checks will be undertaken.

Startup India scheme Tax benefits

After its approval as a startup, a tax holiday of 3 consecutive financial years can be availed out of its first ten years from the date of its incorporation under section 80IAC of the Income Tax Act. The eligibility criteria for the tax benefits are given below -

  • Only recognised startups can avail of these benefits

  • These tax benefits are available only to limited liability partnerships and private limited companies

  • The business should have been formed after 1st April 2016

Startup India Seed Fund Scheme

This is an initiative by the government of India to provide initial funding to startups for proof of concept trials, product development, market entry, and commercialization. It is the programme to ensure that capital is available to companies at the initial stages of companies when funding from bank loans and venture capitalists is inaccessible, as banks usually provide loans to asset-backed companies, while venture capitalists provide support when proof of concept is shown. Moreover, it provides the necessary environment for a startup to grow and to support its innovation.

Start-up India Scheme Eligibility

To be recognised as a startup by the Department for Promotion of Industry and Internal Trade, the firm should fulfill the following criteria

  • The time of existence and operations should not exceed 10 years from the date of incorporation.

  • The legal structure of a business is a private limited company, a registered partnership firm or a limited liability firm.

  • The annual turnover of the enterprise should not exceed 100 crore for any of the financial years since its incorporation.

  • No entity should have been formed by splitting or reconstructing the already existing firm.

  • The firm should be scalable and be working towards a product, process, and have a high potential for wealth creation.

Startup India Registration

Startup India Certificate

This is a certificate of recognition issued by Department for promotion of Industry and Internal Trade to startups recognized by the government body. It gives them access to various tax benefits, funding and simplified compliance processes.

Top 10 Government Schemes for Startups in India

  • Startup India Initiative

  • Fund of Funds for Startups (FFS)

  • Startup India Seed Fund Scheme (SISFS)

  • Credit Guarantee Scheme for Startups (CGSS)

  • Atal Innovation Mission (AIM)

  • MSME Innovation Scheme

  • Support for International Patent Protection in Electronics and IT (SIP-EIT)

  • Stand-Up India Scheme

  • MUDRA Loan Scheme

  • TIDE 2.0 (Technology Incubation and Development of Entrepreneurs)