DPIIT Certificate - Brief & Benefits

The Indian government provides a certification called DPIIT (Department for Promotion of Industry and Internal Trade) registration to support and identify entrepreneurs. This certification is designed to foster growth, innovation, and ease of doing business for startups. Here are some key benefits :

1. Eligibility for 80IAC?

Eligibility for Section 80 IAC benefits, which provides startups with a tax holiday period, allowing them to avail tax exemptions and relief for a specified number of years. This provision aims to support new enterprises by reducing their tax burden during their initial growth phase, thereby encouraging innovation and entrepreneurship.?

2. Angel Tax Exemption?

Tax exemption under Section 56, known as the Angel Tax, is available if the share capital and share premium do not exceed INR 25 crore. This provision exempts startups from tax on angel investments, promoting early-stage funding. It aims to foster innovation and growth by easing the financial burden on new enterprises.?

3. Labor Law and Environmental Law self certification?

Self-certification under six labor laws and three environmental laws allows startups to streamline compliance processes. This initiative enables new enterprises to focus more on growth and innovation while ensuring adherence to essential regulations. By simplifying the compliance requirements, startups can operate more efficiently and reduce administrative burdens.?

4. Faster Winding Up process?

Accelerated winding up processes now complete in 90 days, halving the previous 180-day period. Reduced surcharge rates for long-term gains are fixed at 15%, a significant drop from the former 37%, facilitating more favorable conditions for investors and businesses alike.?

5. Promoting Intellectual Property Protection Through Rebates?

An 80% rebate is offered on patent application fees, while a 50% rebate is available for trademark applications. These incentives aim to reduce financial barriers for innovators and entrepreneurs seeking intellectual property protection. By promoting affordability, the rebates encourage more startups to safeguard their innovations and brand identities effectively.

Eligibility Criteria for DPIIT Registration:?

1. Age of the Company:?

Within 10 years of its incorporation date, the company must have been registered in India as a limited liability partnership, private limited company, or registered partnership firm.?

2. Annual Turnover?

Since the entity's establishment, its turnover for each of the fiscal years should not have surpassed INR 100 crore?

3. Innovation/Improvement?

The organization should strive for product or process innovation, development, or improvement; alternatively, it should have a scalable business plan with significant employment or wealth creation potential?

4. Creation?

The entity should not have been formed by splitting up or reconstructing an already existing business.?

How to Apply?

1. Create an Account?

Visit the Startup India website and create an account.?

2. Fill in the Details?

Provide details about your startup, including name, incorporation date, and other relevant information.?

3. Upload Documents?

Submit necessary documents such as the certificate of incorporation, description of your business, and proof of concept or funding, if any.?

4. Self-Certification?

Complete the self-certification process.?

5. Submit the Application?

After filling in all the details and uploading the required documents, submit your application.?

Written By : Yogesh Kumar

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