Startup India Benefits & Incentives Advisory
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- Startup India Benefits & Incentives Advisory
At Tax Ustaad, we support aspiring entrepreneurs and early-stage ventures in navigating the Startup India ecosystem—from registration and tax exemptions to regulatory compliance and investor readiness. Our advisory ensures that startups unlock the full potential of government incentives while building a solid foundation for growth.
What Is Startup India?
Launched in 2016, Startup India is a flagship initiative by the Government of India to promote innovation, entrepreneurship, and job creation. Startups recognized under this scheme enjoy tax benefits, funding support, and simplified compliance.
Learn more on the official Startup India portal
Eligibility Criteria for DPIIT Recognition
To be recognized as a startup under Startup India, the entity must:
- Be incorporated as a Private Limited Company, LLP, or Partnership Firm
- Have a turnover less than â‚ą100 crore in any financial year
- Be less than 10 years old from the date of incorporation
- Be working toward innovation, development, or improvement of products/services
- Not be formed by splitting up or restructuring an existing business
Tax Benefits for Recognized Startups
1. Section 80-IAC Tax Holiday
- 100% tax exemption on profits for 3 consecutive years out of the first 10 years
- Available only to Private Limited Companies and LLPs
- Must be incorporated after April 1, 2016
2. Angel Tax Exemption (Section 56(2)(viib))
- Exemption from tax on share premium received from investors
- Applicable if post-issue capital (including premium) does not exceed â‚ą25 crore
- Startup must be DPIIT-recognized
3. Capital Gains Exemption (Section 54EE)
- Long-term capital gains exempt if invested in a government-notified fund
- Maximum investment allowed: â‚ą50 lakh
- Lock-in period: 3 years
Detailed eligibility and tax exemption guide
| Service Area | Description |
|---|---|
| DPIIT Registration | End-to-end support for Startup India recognition |
| Tax Exemption Applications | Filing for Section 80-IAC and Angel Tax exemptions |
| Entity Structuring | Choosing the right legal form for tax and compliance efficiency |
| Financial Modeling | Investor-grade projections and valuation reports |
| Compliance Setup | ROC filings, GST registration, PAN/TAN, and startup-friendly documentation |
| Investor Readiness | Pitch deck creation, ESOP planning, and funding strategy |
Why To Choose Tax Ustaad?
- Specialized in startup tax planning and regulatory advisory
- Deep understanding of Startup India, Income Tax Act, and Companies Act
- Customized solutions for tech startups, D2C brands, and service-based ventures
- Transparent, ethical, and founder-focused approach
Whether you're building a disruptive product or scaling a service, Tax Ustaad helps you register, comply, and grow under the Startup India framework. All services are delivered by CA, CMA, and CS-qualified experts with proven experience in startup advisory, tax structuring, and investor compliance.
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