DPIIT: What is it?

The Department for Promotion of Industry and Internal Trade is known by the acronym DPIIT. It is under the purview of the Union Ministry of Corporate Affairs and is in charge of developing strategies to advance trade within India, foreign direct investment, and industrial growth. The Ministry of Commerce and Industry oversees DPIIT. Following the Department of Commerce and the Department of Industrial Policy and Promotion’s (DIPP) merger, it was established in January 2019.

 A key component of this initiative is DPIIT recognition for startups, which offers qualified companies tax breaks, financial options, and expedited patent review. This essay will examine the DPIIT recognition procedure, qualifying standards, advantages, and ways in which it might support the development and prosperity of startups within India’s vibrant and cutthroat startup scene.

What does DPIIT desire to achieve?

Goal of DPIIT is to establish an atmosphere that supports the expansion and development of Indian enterprises and industries. The department is in charge of creating and carrying out regulations that support entrepreneurship, innovation, and investment. To accomplish its goals, DPIIT collaborates closely with a wide range of stakeholders, including companies, trade groups, state and local governments, and other federal ministries.

Giving recognition to qualifying entities under various schemes is one way DPIIT encourages the expansion of businesses. A coveted status that provides numerous advantages to businesses is DPIIT recognition. In order to qualify for DPIIT recognition, a company needs to fulfil particular requirements and adhere to a set of guidelines.

 The Department for Promotion of Industry and Internal Trade (DPIIT) in India serves several purposes, all aimed at promoting and facilitating industrial development and internal trade in the country. Some of the key purposes and functions of DPIIT include:

 Formulating Industrial Policy: DPIIT is responsible for formulating and implementing industrial policies that promote the growth and development of the industrial sector in India. These policies often aim to enhance competitiveness, encourage innovation, and attract investments.

Promoting Investments: DPIIT works to attract both domestic and foreign investments in various industries. This includes creating a conducive business environment, simplifying regulatory processes, and offering incentives to investors.

 Supporting Startups: DPIIT leads the Startup India initiative, which is focused on fostering the growth of startups in the country. This involves providing various benefits and incentives to startups, such as tax exemptions, self-certification, and easier compliance procedures.

 Ease of Doing Business: DPIIT plays a crucial role in improving the ease of doing business in India. This includes streamlining regulatory processes, reducing bureaucratic hurdles, and implementing reforms to create a more business-friendly environment.

Internal Trade Facilitation: In addition to industrial promotion, DPIIT also works towards facilitating internal trade. This involves measures to simplify and streamline trade processes within the country.

What advantages does DPIIT offer?

Eligible startups can take advantage of a number of advantages of DPIIT recognition, including funding opportunities, tax exemptions, and expedited patent examination. Additionally, it gives startups credibility, visibility, and networking opportunities with investors, mentors, and leaders in the industry. DPIIT recognition can also assist startups 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.

Access to Government Schemes: DPIIT-recognized startups are eligible to apply for government schemes and programs designed to support and promote entrepreneurship.

 Tax Benefits: Startups recognized by DPIIT may avail themselves of tax benefits under the Startup India initiative. This includes a three-year exemption from income tax in a consecutive block of seven years, provided the turnover does not exceed a certain limit.

Self-Certification Compliance: DPIIT-recognized startups are allowed to self-certify compliance with certain labor and environmental laws. This reduces the regulatory burden on startups.

Faster Exit Process: The insolvency and bankruptcy code provisions are simpler for startups, making it easier for them to exit within 90 days.

Access to Fund of Funds: Startups can get access to the Fund of Funds for Startups (FFS), which is a government scheme to provide funding support through selected venture capital firms.

IPR Benefits: DPIIT recognition provides assistance and support for filing patents and trademarks. Startups can receive an 80% rebate on the patent filing fees.

Networking Opportunities: Recognition opens up opportunities for networking with other startups, investors, and industry leaders through events organized by the government or other startup ecosystems.

Priority in Government Procurement: Startups are given preference in government procurement processes, making it easier for them to participate in government tenders.

Easier Compliance Requirements: Startups enjoy relaxed compliance requirements for matters like labor and environment regulations.

How can one become recognized by DPIIT?

The Department for Promotion of Industry and Internal Trade launched the DPIIT recognition for startups programme to give eligible startups benefits, recognition, and incentives to help them grow, develop, and expand in India. Eligible startups that wish to be recognised by DPIIT must fill out an online application with information about their team, product or service, funding, and business. A panel of experts reviews the application, and those who are successful get access to a certificate of recognition as well as a number of incentives and benefits. Below are detailed explanations of each stage of the procedure.

 Establish the eligibility requirements.

 Before submitting an application for DPIIT recognition, a company needs to ascertain its eligibility. The National Industrial Classification (NIC) code, the Startup India Scheme, and the Industrial Entrepreneurship Memorandum (IEM) are just a few of the programmes that DPIIT recognises. Businesses must fulfil the specific eligibility requirements of each scheme in order to be given consideration for recognition.

For example, a business needs to be incorporated as a limited liability partnership (LLP), private limited company, or partnership firm in order to be eligible for recognition under the Startup India Scheme. Its incorporation date must have been no more than ten years ago, and its yearly revenue cannot exceed INR 100 crores. The company must also be pursuing the development of novel and cutting-edge technology-driven goods, services, or processes, with the main goals being the creation of wealth and jobs. It must be an original structure and not the result of the division or reconstruction of an already-existing business in order to be eligible.

 Create a profile and register on the DPIIT Portal.

A business must register on the DPIIT portal after determining its eligibility. Businesses can apply online for recognition under a variety of schemes through the DPIIT portal. A business must register by providing basic information about itself, including its name, address, and contact details. OTP would be used for the contact information verification. This will finish the registration process and send your login information to the email address you registered.

 A business must register on the DPIIT portal after determining its eligibility. Businesses can apply online for recognition under a variety of schemes through the DPIIT portal. A business must register by providing basic information about itself, including its name, address, and contact details. OTP would be used for the contact information verification. This will finish the registration process and send your login information to the email address you registered.

 Request DPIIT Acknowledgment.

Applications for recognition under the Startup India scheme can be made by businesses after completing their registration and profile creation on the DPIIT portal. The business will need to fill out an application form with information about its business plan, projected financials, and the problem it hopes to solve. The company is also required to submit details about its personnel, which includes the directors, founders, and senior management.

Request DPIIT Acknowledgment.

Applications for recognition under the Startup India scheme can be made by businesses after completing their registration and profile creation on the DPIIT portal. The business will need to fill out an application form with information about its business plan, projected financials, and the problem it hopes to solve. The company is also required to submit details about its personnel, which includes the directors, founders, and senior management.

Number of startups approved by the government between the fiscal year 2016 and 2022

In 2022, the Department for Promotion of Industry and Internal Trade (DPIIT) recognised more than 26,000 startups. Since 2016, the number of startups in India has increased dramatically, with companies springing up all over the nation. The Indian government initiated the Startup India initiative to facilitate and maintain its expansion. The DPIIT had officially recognised 92,683 startups as of February 2023.

India’s business climate and unicorns

India’s economy is made up of a huge number of mostly microbusinesses, the majority of which are located in rural areas. The COVID-19 pandemic’s negative economic effects caused startup funding to lose value between 2017 and 2020, but this trend reversed in 2021 as the number of startup investment deals increased. Thanks to numerous funding agreements and investment plans, Indian startups have expanded into numerous important industries, particularly the technology and e-commerce sectors.

Unicorns and top startup industries

Fintech, e-commerce, and enterprisetech, on the other hand, accounted for the majority of all startups in the nation in 2022. In 2021, India ranked second in the Asia Pacific region for the quantity of unicorns, with a market valuation of slightly less than $100 billion.

Final Thoughts

In conclusion, by giving startups the tools and support they require to develop and prosper, DPIIT recognition for startups plays a critical role in fostering entrepreneurship and innovation in India. DPIIT recognition helps lower entry barriers and promote an innovative culture in India by providing advantages like funding opportunities, tax exemptions, and expedited patent examination. The Startup India programme and DPIIT recognition offer opportunities for entrepreneurs wishing to launch or expand their businesses in India.