Introduction
In India’s fast-growing start-up ecosystem, DPIIT (Department for Promotion of Industry and Internal Trade) recognition has become more than just a certification it’s a gateway to exclusive government benefits and funding opportunities.
For start-ups in emerging hubs like Raipur and other parts of Chhattisgarh, obtaining DPIIT recognition can unlock a wide range of schemes, incentives, and exemptions that are otherwise unavailable to unregistered businesses.
These schemes aim to support innovation, reduce financial burden, and promote entrepreneurship across India ensuring that small-city start-ups have the same opportunities as those in metro hubs.
Here’s a breakdown of the top government schemes that only DPIIT-recognized start-ups can access in 2025.
Income Tax Exemption (Section 80-IAC)
Benefit:
A 100% income tax exemption for any 3 consecutive years out of the first 10 years of incorporation.
Eligibility:
DPIIT-recognized start-up.
Incorporated as a Private Limited Company or LLP.
Turnover not exceeding ₹100 crore.
Result:
Start-ups can reinvest their savings into growth, product development, and employment generation instead of paying heavy taxes in the early stages.
Angel Tax Exemption (Section 56(2)(viib))
Problem Solved:
Previously, when start-ups raised funds above fair market value, the excess amount was taxed as income – known as Angel Tax.
With DPIIT Recognition:
This tax does not apply, encouraging angel investors and venture capitalists to fund start-ups without fear of additional scrutiny.
Effect:
Boosts investor confidence and smoothens the fundraising process for small-city start-ups.
Self-Certification under Labour and Environmental Laws
Feature:
DPIIT-recognized start-ups can self-certify compliance under 9 major labour and environmental laws for the first 5 years.
Benefit:
Fewer inspections.
Simplified compliance filings.
Reduced legal burden.
This allows founders to focus on building their business, not battling with compliance paperwork.
Intellectual Property Rights (IPR) Benefits
Rebates & Fast-Track Processing:
80% rebate on patent filing fees.
50% rebate on trademark applications.
Fast-track examination for quicker approvals.
Impact:
DPIIT-recognized start-ups from Raipur can protect their innovations affordably essential for tech and product-based ventures.
Government e-Marketplace (GeM) Benefits
Recognized start-ups can register on GeM, the Government’s procurement portal, to sell products and services directly to central and state departments.
Key Advantages:
No prior turnover or experience required.
Quick registration and bidding process.
Reliable payments from government buyers.
This opens up a huge B2G (business-to-government) market for start-ups in Chhattisgarh.
Easier Winding Up under IBC
If a start-up fails, DPIIT recognition allows fast-track closure within 90 days under IBC norms – saving founders from long legal processes and financial stress.
Conclusion
For start-ups across Raipur and Chhattisgarh, DPIIT recognition is the bridge between an idea and full access to India’s official start-up ecosystem.
These government schemes from SISFS and CGSS to Angel Tax exemption and IPR rebates are exclusively available to recognized start-ups. They not only provide funding and tax relief but also reduce legal complexities and boost investor confidence.
In short, DPIIT recognition isn’t just about compliance it’s a complete support system designed to help start-ups grow faster, safer, and stronger in 2025 and beyond.
– Written and Edited by – Shruti Goyal (B.A.LL.B)
