Startup India Schemes: Real Benefits with Step-by-Step Application Process
Why Startup India Schemes Matter More Than You Think
You’ve probably heard of the Startup India Schemes, but like most founders, you may have ignored it—assuming it’s just another government formality. But what if skipping it is actually costing you lakhs in tax savings, funding access, and legal ease?
A friend of mine once said, Let’s launch first, paperwork later. That later cost him a shot at ₹25 lakh in angel funding. Why? Because he didn’t register under Startup India Schemes in time.
Don’t make the same mistake.
A Common Startup Mistake That Costs Lakhs
You’ve got your MVP. You’re talking to early users. But now the CA says something about DPIIT recognition, 80-IAC, and tax exemptions.
You Google it.
One website says apply through Startup India portal. Another says get your incorporation done first. A YouTube video talks about Form-80 and trademark rebates. Before you know it, you’re stuck in a loop of tabs and confusion.
Meanwhile, the deadline to apply for tax benefits slips away. An investor backs out due to a compliance gap. Your pitch deck still has a blank in the “Startup India benefits” section.
The Hidden Financial Risks of Not Applying
Ignoring Startup India Schemes early on means you’re:
Missing out on a 100% tax holiday under Section 80-IAC
Disqualifying for Angel Tax Exemption (Section 56)
Losing government access to SIDBI’s Fund of Funds
Spending extra time & money on IPR registration
Being ineligible for public tenders without experience
That’s not just red tape. That’s real money lost and opportunities vanished.
How Startup India Schemes Actually Work
Here’s what most people don’t realize:
Startup India Schemes actually work beautifully—if you apply the right way. They’re built to empower entrepreneurs, not confuse them. And the process, once demystified, is easier than you think.
🧭 Step-by-Step Application Process
1. Register Your Business
First, incorporate your entity as a Private Limited Company, LLP, or Partnership Firm with the Ministry of Corporate Affairs (MCA).
Related blog: LLP vs Pvt Ltd – What Should You Choose?
2. Create an Account on Startup India Portal
Go to startupindia.gov.in and register.
Details needed:
Certificate of Incorporation
PAN Card
A one-liner about your startup’s product/innovation
3. Apply for DPIIT Recognition
Submit:
Proof of innovation or scalability
Startup pitch or idea document
Optional: Letters from incubators, awards, etc.
Once approved, you’re officially recognized under Startup India Schemes.
4. Apply for Scheme Benefits
With DPIIT recognition, you can now apply for:
Section 80-IAC tax benefits
Angel Tax Exemption (Section 56)
Intellectual Property Rights benefits
Government tenders & grant schemes
5. Stay Compliant
File annual returns, maintain ROC filings, and follow basic compliance to continue enjoying benefits.
Related: ROC Filing Calendar for Startups (Month-by-Month Guide)
What Happens When You Do It Right
One Legal Suvidha client—a bootstrapped SaaS founder—got DPIIT recognition within 12 days. She applied for Startup India Schemes, got ₹15L seed funding, and 100% tax exemption for 3 years.
Compare that with another founder who delayed it, missed the benefit window, and paid ₹3.4L in avoidable taxes the first year.
The difference? Awareness + Action.
Step-by-Step Guide to Get Recognized & Benefit
When you register under Startup India Schemes, you’re not just doing compliance. You’re telling investors you’re:
Recognized by DPIIT
Transparent and legally structured
Startup-ecosystem ready
And that goes a long way in due diligence and early fundraising.
Final Decision Time: What Will You Do?
Now that you know how real and beneficial Startup India Schemes are, here are your two choices:
Option 1: Do Nothing
You delay. You skip.
But the tax benefits? Gone.
Investor interest? Drops.
And when funding season comes, you’re left explaining “Why not yet?”
Option 2: Let Legal Suvidha Help
We’ll do everything:
✔️ DPIIT registration
✔️ Tax exemption filing
✔️ IPR assistance
✔️ Ongoing startup compliance
🕐 Urgency Alert: Government approvals and benefits are time sensitive. DPIIT recognition takes time, and the earlier you start, the sooner you qualify for benefits.
Act now and don’t let your startup miss out on government support
Connect with our Domain Expert or reach out via WhatsApp for instant help.
📱 Phone: 8130645164
📧 Email: [email protected]
🌐 Website: www.legalsuvidha.com
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