BENEFITS OF DPIIT STARTUP CERTIFICATE
With a thriving ecosystem that promotes innovation and entrepreneurship, India has quickly become a global powerhouse for startups. Technology, healthcare, education, and e-commerce are just a few of the industries where the nation’s startup ecosystem has experienced exponential growth in recent years. It is not just a phenomenon in big metropolis, but the smaller communities are also experiencing a rise in entrepreneurship. The Indian government’s supportive infrastructure and policies are a major driver for the surge in startup activity. Initiatives such as ‘Startup India’ and ‘Make in India’ which resulted in creation of a separate department called DPIIT have provided much-needed impetus to the entrepreneurial sector. These programs provide a variety of benefits, including tax breaks, simplified compliance standards, and speedier patent registration processes. Furthermore, the emergence of different incubators and accelerators has provided businesses with the resources they need to
INTRODUCTION
In India, the government agency in charge of encouraging industrial growth, entrepreneurship, and innovation is known as the Department for Promotion of Industry and Internal Trade (DPIIT). The Ministry of Commerce and Industry is in charge of DPIIT. Under startup India’s initiative, the Department of Commerce and the Department of Industrial Policy and Promotion (DIPP) merged to form this government organisation in January 2019. The principal aim of DPIIT is to establish a favourable atmosphere for the expansion and advancement of Indian industries and enterprises. The department bears the responsibility of developing and executing policies that promote investment, innovation, and entrepreneurship. To accomplish its goals, DPIIT collaborates closely with a wide range of stakeholders, including corporations, trade groups, state and local governments, and other federal departments. The Department for Promotion of Industry and Internal Trade assists startups in obtaining benefits from self-certification and compliance with nine environmental and labour laws. With no additional licence from the Inter-Ministerial Board, startups approved by DIPP can also take advantage of intellectual property rights benefits like the IPR fast track. Additionally, in accordance with the 2016 Insolvency & Bankruptcy Code, the corporation may wind up if it wishes to be under 90 days. Nonetheless, this article discusses the numerous additional advantages of being recognised as a startup under DPIIT.
BENEFITS OF DPIIT CERTIFICATE
Eligible firms can take advantage of a number of advantages from DPIIT recognition, including financial opportunities, tax exemptions, and expedited patent evaluation. Additionally, it gives entrepreneurs credibility, visibility, and networking possibilities with investors, mentors, and leaders in the sector. DPIIT recognition can also assist businesses in overcoming administrative roadblocks, enhancing the ease of conducting business, and advancing an innovative and entrepreneurial culture in India. Below is a summary of some of the main advantages of DPIIT Recognition.
1) Self - Certification- The DPIIT Certificate of Recognition for Startups grants the ability for your business to self-certify compliance with three environmental laws and six labour laws and also offers exemption from certain inspections for the first 3 years of incorporation
2) Tax Exemption- Numerous tax benefits are available to startups that are recognised by DPIIT. Under Section 80 IAC of the Income Tax Act, a startup can apply for the Tax Exemption after obtaining the Certificate of Recognition. Furthermore, the approved startups are eligible to apply for the Angel Tax Exemption. In the first ten years of business following creation, DPIIT-recognized startups are exempt from income tax for three consecutive fiscal years following the acquisition of tax exemption clearance. They also qualify for a 100% profit deduction for five out of the seven years following the date of incorporation.
3) Startup Patent Application- The DPIIT recognised startups and only requires them to pay 80% of the expenses associated with patents, copyrights, designs, and trademarks. Additionally, DPIIT-recognized startups can use fast tracking for patent applications.
4) Smooth Public Procurement Norms- The DPIIT-accredited startups will have the chance to list their goods on the government e-marketplace. Additionally, these startups are not required to make an earnest money deposit. Additionally, the DPIIT Startups are exempt from any turnover or prior experience requirements in all departments and ministries of the central government.
5) Credit Guarantee Fund- The National Credit Guarantee Trust Company, also known as SIDBI, has the ability to provide the Rs 2000 crore Credit Guarantee Fund to startups recognised under the DPIIT for a period of four years. Additionally, it is simpler for these businesses to obtain financing from banking institutions at reduced interest rates.
6) Funds of Funds- The DPIIT-recognized startups are qualified to receive up to Rs. 10,000 crores in funding from Alternative Investment Funds. These firms can also access a variety of subsidies, incentives, and funds from the federal and state governments.
7) Brand Recognition- A startup's brand can grow in a number of ways with DPIIT awareness. First of all, the startup's potential for expansion and innovation is validated and instant credibility is given by being recognised by DPIIT. The firm can use this accreditation to highlight its accomplishments and unique selling points on its website, social media accounts, and marketing tools. Second, startups who are recognised by DPIIT may be able to take advantage of a range of networking possibilities, including conferences, events, and mentorship programs, which can facilitate their ability to establish connections with investors, industry leaders, and prospective clients.
8) Easy Winding Up- The Insolvency and Bankruptcy Code of 2016 states that a startup recognised under the DPIIT may be wound up within less than ninety days after filing for bankruptcy.
CONCLUSION
To sum up, DPIIT registration or certification for startups is essential in fostering innovation and entrepreneurship in India since it gives them access to the tools and assistance they require to develop and prosper. DPIIT registration/recognition serves to lower entry barriers and promote an innovative culture in India by providing advantages like funding opportunities, tax exemptions, and expedited patent evaluation. The Startup India program and DPIIT registration/recognition offer a plethora of advantages and opportunities for entrepreneurs wishing to establish or expand their enterprises in India. Startups can gain access to capital, incentives, assistance, and recognition by embracing this method, which will help them achieve long-term success and sustainable growth. Take advantage of this once-in-a-lifetime chance to register your startup with DPIIT and set off on a revolutionary path towards innovation, profitability, and impact as you begin your entrepreneurial career.
