Note · 4 October 2026
Startup India recognition in 2026: who qualifies, what the portal asks, and what comes after
A young business becomes a “recognised startup” only when DPIIT issues it a certificate. Without one, it cannot apply for the startup tax holiday, the lower patent and trademark fees, or several government schemes. The rules changed in February 2026, so older guides may quote limits that no longer apply.
Where the rules come from
The Department for Promotion of Industry and Internal Trade (DPIIT) issued notification G.S.R. 108(E) on 4 February 2026. It replaced the 2019 notification (G.S.R. 127(E)) that most articles still refer to. Three things changed: the turnover limit went up from ₹100 crore to ₹200 crore, a new “deep-tech startup” category was added, and co-operative societies can now apply. The DPIIT announcement is on the PIB website.
Do you qualify?
The age test runs from the date of incorporation or registration, not from when trading began. The turnover test looks at every financial year since then, so one strong year above the limit ends eligibility for good.
The “splitting up or reconstruction” test catches a business that is moved from an old entity into a new one to look young. A new company formed by people who also run another business is fine, as long as no existing business was transferred into it. If shares have changed hands since incorporation, that is a change of owner, not a reconstruction.
Should you apply as deep-tech?
The deep-tech category gives 20 years and a ₹300 crore limit. It is meant for businesses built on new scientific or engineering work, with heavy research spending, their own patents or other intellectual property under development, long development times and real technical risk. A business that runs a service on good software or bought-in AI tools does not qualify. Choosing deep-tech without that kind of work leads to questions and can delay recognition.
Innovation or improvement?
The form asks whether the business is creating something new or improving something that already exists. Both are accepted grounds, in the notification and later for the tax holiday. Most service businesses honestly fall under improvement: a faster, cheaper or more reliable way of doing something people already pay for. The short note explaining your choice should be specific. “We use technology to improve logistics” is too vague. “Each handover is recorded only when a code is scanned, so tracking shows what actually happened” tells the reviewer what is different.
From application to certificate
Several answers have a limit of a few hundred characters, and the counter is strict. Write the notes first, in a document, and cut them to size before you open the form. Keep the figures the same everywhere: the employee count, the address and the directors’ details should match what the company has filed with the Registrar of Companies and what its payroll shows.
The categories list changes with the sector you pick, so choose the sector first. Pick only categories that describe what the business actually sells. A logistics company that runs on its own software is still a logistics company; “SaaS” is for businesses that sell the software itself.
After recognition
The tax holiday. From 1 April 2026 the old section 80-IAC lives on as section 140 of the Income-tax Act, 2025. It lets an eligible startup claim a deduction of all its profits for any three consecutive tax years out of the first ten. Recognition alone is not enough: the business must be a private limited company or an LLP, incorporated on or after 1 April 2016 and before 1 April 2030, and it needs a separate certificate from the Inter-Ministerial Board. Its accounts for the years claimed must be audited. Partnership firms and co-operative societies can be recognised but cannot claim this deduction. Most startups apply once profits are in sight, since the holiday is worth little in loss-making years.
Patents and trademarks. Recognised startups pay lower official fees for patent and trademark applications. If the brand name or logo is not yet registered, this is a good time to file.
Keeping the status. The certificate stays valid for ten years from incorporation (twenty for deep-tech) while turnover stays within the limit. The 2026 notification also says a recognised startup should not put its money into things outside its core business, such as real estate or speculative investments. DPIIT can withdraw recognition obtained on wrong information.
Before you start
Gather the certificate of incorporation, PAN, the directors’ or partners’ identity and address proofs, their mobile numbers and email addresses, the registered office address as filed with the Registrar, the Udyam registration if there is one, the logo, and a short company profile. Agree the wording of the notes inside the company before anyone signs the authorisation letter.
This note is general information and does not deal with any particular business. The official texts on the Startup India portal are the final word. Mukul Nimrani & Co. acts only on a written mandate, and reading this page does not start any work. If you have read the official texts and still have a question, you can reach us through Contact.