Startup India & Angel Tax Exemption: Eligibility and 2026 Process

Startup India recognition from the DPIIT unlocks a package of tax and regulatory benefits — most notably a three-year income-tax holiday and relief from the so-called angel tax. Recognition is free and fully online.

Eligibility for DPIIT Recognition

• Incorporated as a Private Limited Company, LLP, or registered partnership.
• Not older than 10 years from incorporation.
• Annual turnover has not exceeded ₹100 crore in any year.
• Working towards innovation, development, or improvement of products/services with scalable potential.
• Not formed by splitting up or reconstructing an existing business.

Key Benefits

• Section 80-IAC tax holiday: 100% deduction of profits for any three consecutive years within the first ten, subject to a separate application.
• Angel tax exemption: Relief under Section 56(2)(viib) on the premium raised from investors.
• Self-certification for six labour and three environmental laws.
• Faster IP processing with an 80% rebate on patent fees.
• Access to government tenders without prior experience criteria.

The Registration Process

• Step 1: Incorporate the entity and complete company registration.
• Step 2: Create a profile on the Startup India portal.
• Step 3: Apply for DPIIT recognition with the incorporation certificate and a short write-up on how the startup is innovative and scalable.
• Step 4: Receive the recognition certificate, usually within a few working days.

Claiming the Tax Holiday

DPIIT recognition alone does not grant the 80-IAC tax holiday — you must file a separate application to the Inter-Ministerial Board. Strong financials and a clear innovation narrative improve approval odds.

Statura helps founders with Startup India recognition, angel tax exemption, and the 80-IAC application from start to finish.