For an AI startup, DPIIT recognition is usually the first and most accessible piece of public support — but it’s worth understanding exactly what it is (tax/IPR relief) and isn’t (cash). (dgm implements osFoundry, a separate company’s platform — dgm is an independent integration partner, not osFoundry, and not a recognition consultant. General information, not professional, tax or legal advice.)

What recognition gives you

DPIIT recognition under Startup India unlocks:

  • Section 80-IAC tax holiday — 3 consecutive years of 100% income-tax exemption within the first 10 years (separate approval, Pvt Ltd / LLP only);
  • Angel-tax exemption (Section 56(2)(viib));
  • 80% rebate on patent filing/processing fees, plus fast-tracked examination;
  • EMD exemption in government tenders;
  • Self-certification under certain labour and environmental laws.

Startup India: recognition

It is not a cash grant. It’s the relief layer that makes the funding routes (Fund of Funds, IndiaAI) more workable.

Who qualifies

  • Entity: Pvt Ltd company, LLP, partnership firm or cooperative society.
  • Age: within 10 years of incorporation (20 for deep-tech).
  • Turnover: under ₹200 crore (₹300 crore deep-tech) in any year.
  • Innovation: genuine innovation or improvement of products/services/processes.
  • Not formed by splitting up or reconstructing an existing business.

Note the honest implication: an established company adopting AI is generally not a recognisable startup (see who qualifies for AI funding).

How to apply

  1. Create an account on the National Single Window System (nsws.gov.in).
  2. Add the “Registration as a Startup” form.
  3. Submit incorporation documents and a short description of your innovation.
  4. It’s free — no fee, no agent required.
  5. For the tax holiday, file the separate 80-IAC application after recognition.

Where dgm fits

dgm doesn’t do recognition applications — it’s a free, self-serve process you can complete yourself or with a CA. We’re an integration partner: once you’re building or adopting AI, we implement it on osFoundry — model-neutral, self-hostable, India data control — for a transparent $399 assessment and $3,999/month (INR approximate; 18% GST domestic).

General information, not professional, tax or legal advice. Confirm current eligibility and the 80-IAC process on startupindia.gov.in and with a qualified CA.