Who qualifies (notification of 4 February 2026)
| Startup | Deep-tech startup | |
|---|---|---|
| Age | Up to 10 years from incorporation or registration | Up to 20 years |
| Turnover limit (any year) | ₹200 crore (was ₹100 crore) | ₹300 crore |
| Other tests | Working on innovation or a scalable model with high job or wealth creation potential | Solutions based on new scientific or engineering knowledge, high R&D spend, significant novel IP |
- Eligible entities: private limited companies, LLPs, registered partnership firms and — new in 2026 — cooperative societies.
- The business shouldn’t be formed by splitting up or reconstructing an existing business, and the new rules restrict diverting funds into real estate, luxury assets or securities.
- Already recognised? You don’t need to reapply.
Benefits
- IP support: fee rebates on patents and trademarks and expedited patent examination.
- Compliance relief: self-certification under specified labour and environmental laws (check how this now maps to the new Labour Codes).
- Funding: access to the Fund of Funds for Startups, and the new ₹10,000 crore Fund of Funds 2.0 focused on deep tech and manufacturing.
- Tax: eligibility for the startup tax holiday and the ESOP tax deferral for employees (see below).
The startup tax holiday
- A 100% deduction of profits for any 3 consecutive years out of the first 10 — section 140 of the Income-tax Act, 2025 (formerly 80-IAC).
- Requires DPIIT recognition plus a certificate from the Inter-Ministerial Board.
- The company must be incorporated before 1 April 2030, and the Finance Act 2026 raised this section’s turnover limit to ₹300 crore.
- The same certificate lets employees defer tax on ESOPs — see ESOP taxation.
How to apply
- Register the entity on the Startup India portal.
- Fill the recognition form with incorporation details, a description of the innovation and supporting documents (pitch deck, website, patents or awards if any).
- Track the application and respond to queries.
- For the tax holiday, apply separately to the Inter-Ministerial Board after recognition.
Raising money after recognition? See fundraising advisory and angel tax.
Frequently asked questions
What is the turnover limit for DPIIT startup recognition in 2026?
₹200 crore in any financial year for a startup, and ₹300 crore for the new deep-tech startup category, under the notification of 4 February 2026.
How old can a company be to get DPIIT recognition?
Up to 10 years from incorporation or registration, or up to 20 years for a deep-tech startup.
Does DPIIT recognition give a tax holiday?
It's the first step. The tax holiday — 100% of profits for 3 consecutive years out of 10 under section 140 of the Income-tax Act, 2025 — also needs an Inter-Ministerial Board certificate, and the company must be incorporated before 1 April 2030.
Can an LLP get DPIIT recognition?
Yes. Private limited companies, LLPs, registered partnership firms and, since 2026, cooperative societies can be recognised.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.