Choose the right structure, get DPIIT recognition under the 2026 framework, apply for the tax holiday and keep the company investor-ready from day one.
Under the revised framework notified on 4 February 2026:
Criterion
Startup
Deep tech startup
Entity
Private limited company, LLP, registered partnership firm or eligible cooperative society
Age
Up to 10 years from incorporation
Up to 20 years
Turnover
Not above ₹200 crore in any year
Not above ₹300 crore
Nature
Working towards innovation or improvement of products, processes or services, or a scalable business model; not formed by splitting or reconstructing an existing business
What recognition gives you
Tax holiday: eligible recognised startups can claim a 100% deduction of profits for 3 consecutive years out of the first 10, after certification by the Inter-Ministerial Board (section 80-IAC, carried into the Income-tax Act, 2025).
Self-certification under specified labour and environment laws.
Fast-tracked patent and trademark applications with fee rebates.
Easier public procurement conditions and access to government funding schemes.
Higher credit guarantee cover under the startup credit guarantee schemes.
How we take you through it
Structure: private limited company vs LLP, shareholding and founder agreements. See company registration.
Recognition application: incorporation certificate, description of innovation, pitch deck or website, and founder details on the Startup India portal.
Tax holiday certification: application to the Inter-Ministerial Board with audited financials and a clear innovation case.
Share valuation for allotments, FEMA filings for foreign investment and PAS-3 for allotments.
ESOP scheme design and tax: perquisite tax at exercise, with deferral available to employees of eligible startups; capital gains on sale. Estimate with the ESOP / RSU tax calculator.
What is the turnover limit for DPIIT startup recognition in 2026?
Under the framework notified on 4 February 2026, turnover must not exceed ₹200 crore in any financial year, and ₹300 crore for deep tech startups. The age limit is 10 years, or 20 years for deep tech.
Does DPIIT recognition automatically give the startup tax holiday?
No. Recognition is the first step. The tax holiday requires separate certification from the Inter-Ministerial Board, and the startup must meet the conditions, including incorporation within the permitted period.
Can a proprietorship get startup recognition?
No. Only private limited companies, LLPs, registered partnership firms and eligible cooperative societies are covered.
Is angel tax still applicable?
No. The provision taxing share premium above fair value (angel tax) was abolished from FY 2024-25.
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