Government Support for Startups

Comprehensive Guide to
Startup Schemes in India

Explore central and state government schemes, incubation centers, tax benefits, funding opportunities, and regulatory support for Indian startups

Government Schemes

Central & State Government Schemes

Comprehensive support from central and state governments to help your startup grow

Startup India Initiative

DPIIT, Ministry of Commerce

Flagship program providing comprehensive support including tax exemptions, self-certification compliance, IPR fast-tracking, and access to funding opportunities

Key Benefits

3-year tax holidaySelf-certification complianceIPR benefitsFund of Funds access

Eligibility

Incorporated as Private Limited or LLP, turnover < ₹100 Cr, working on innovation

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Startup India Seed Fund Scheme (SISFS)

DPIIT

Provides financial assistance up to ₹20 lakhs for proof of concept and ₹50 lakhs for prototype development and market entry

Key Benefits

Up to ₹20L for PoCUp to ₹50L for prototypeMentorship supportMarket validation

Eligibility

DPIIT recognized startup, incorporated < 2 years, innovative business model

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SIDBI Fund of Funds

SIDBI

₹10,000 Cr corpus providing capital to SEBI registered AIFs who invest in startups across various sectors

Key Benefits

Large capital poolVC fund accessGrowth stage fundingSector agnostic

Eligibility

Through SEBI registered Venture Capital funds investing in Indian startups

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Atal Innovation Mission (AIM)

NITI Aayog

Promotes innovation and entrepreneurship through Atal Tinkering Labs, Incubation Centers, and mentorship programs

Key Benefits

ATL setup supportAIC fundingMentorship programsInnovation challenges

Eligibility

Schools, colleges, and organizations promoting innovation and entrepreneurship

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TIDE 2.0 Scheme

MeitY

Technology Incubation and Development of Entrepreneurs providing financial support to incubators for ICT startups in emerging tech

Key Benefits

Incubator fundingInfrastructure supportEmerging tech focusMentorship network

Eligibility

Incubators supporting ICT startups in IoT, AI, Blockchain, AR/VR, etc.

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NIDHI Programme

DST

National Initiative for Developing and Harnessing Innovations - umbrella program supporting TBIs to nurture startups

Key Benefits

TBI supportSeed fundingInfrastructure grantsEcosystem building

Eligibility

Technology Business Incubators and innovation-driven startups

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Credit Guarantee Scheme (CGSS)

SIDBI

Provides collateral-free debt funding up to ₹10 Cr for DPIIT recognized startups through member institutions

Key Benefits

Collateral-free loansUp to ₹10 CrCredit guaranteeEasy access

Eligibility

DPIIT recognized startups with viable business model

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Biotechnology Industry Research Assistance Council (BIRAC)

DBT

Supports biotech startups with funding, mentorship, and infrastructure for innovation in healthcare and life sciences

Key Benefits

Biotech fundingLab infrastructureClinical trial supportIP assistance

Eligibility

Biotech and life sciences startups with innovative solutions

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Incubation Centers

Premier Incubation Centers in India

World-class incubators providing infrastructure, mentorship, and funding support

T-Hub
Innovation Campus

T-Hub

Hyderabad, Telangana

India's largest innovation campus and startup incubator with world-class infrastructure

Focus Areas

TechnologyDeep-techB2BEnterprise

Facilities

Co-working space
Mentorship
Funding access
Corporate connect
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NSRCEL - IIM Bangalore
Business Incubator

NSRCEL - IIM Bangalore

Bangalore, Karnataka

Premier business incubator at IIM Bangalore supporting early-stage startups with mentorship and funding

Focus Areas

Business modelsScalabilityMarket strategyLeadership

Facilities

Mentorship
Funding support
Network access
Business development
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STPI
Government Incubator

STPI

Pan India

Software Technology Parks of India promoting IT/ITES startups with infrastructure and support

Focus Areas

IT/ITESSoftwareElectronicsEmerging tech

Facilities

Infrastructure
Regulatory support
Networking
Export facilitation
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IIT Madras Incubation Cell
Academic Incubator

IIT Madras Incubation Cell

Chennai, Tamil Nadu

Premier incubator supporting deep-tech and innovation-driven startups with technical expertise

Focus Areas

Deep-techEngineeringResearchInnovation

Facilities

Lab access
Technical mentorship
Funding
Research support
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CIIE.CO - IIM Ahmedabad
Innovation Center

CIIE.CO - IIM Ahmedabad

Ahmedabad, Gujarat

Centre for Innovation Incubation and Entrepreneurship fostering innovation-driven enterprises

Focus Areas

InnovationSocial impactTechnologySustainability

Facilities

Incubation
Acceleration
Funding
Mentorship
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SINE - IIT Bombay
Technology Incubator

SINE - IIT Bombay

Mumbai, Maharashtra

Society for Innovation and Entrepreneurship supporting technology startups with comprehensive support

Focus Areas

TechnologyEngineeringProduct developmentScaling

Facilities

Infrastructure
Mentorship
Funding
Market access
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Kerala Startup Mission
State Mission

Kerala Startup Mission

Thiruvananthapuram, Kerala

Nodal agency for entrepreneurship development in Kerala with extensive support ecosystem

Focus Areas

All sectorsSocial impactTechnologyInnovation

Facilities

Seed funding
Incubation
Mentorship
Market linkage
Visit Website
NASSCOM 10000 Startups
Industry Initiative

NASSCOM 10000 Startups

Pan India

Scale-up program for tech startups with mentorship, market access, and global connections

Focus Areas

TechnologyScalingGlobal marketsEnterprise

Facilities

Mentorship
Market access
Investor connect
Global network
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Tax Benefits

Tax Benefits for Startups

Significant tax exemptions and benefits to help startups save costs and grow faster

Income Tax Exemption

Up to 30% of profits

3-year tax holiday for eligible startups under Section 80-IAC

  • Exemption from income tax for 3 consecutive years out of first 10 years
  • Applicable to startups incorporated after April 1, 2016
  • Turnover should not exceed ₹100 Crores in any financial year
  • Must be certified by Inter-Ministerial Board (IMB)

Capital Gains Tax Exemption

Up to 20% of capital gains

Exemption on long-term capital gains invested in startups

  • Under Section 54EE and 54GB of Income Tax Act
  • Exemption on capital gains if invested in eligible startups
  • Promotes investment in startup ecosystem
  • Lock-in period of 5 years applicable

Angel Tax Exemption

Significant compliance relief

Exemption from Angel Tax under Section 56(2)(viib)

  • DPIIT recognized startups exempt from Angel Tax
  • No scrutiny on share premium received from investors
  • Simplified compliance for fundraising
  • Promotes angel investment in startups

GST Benefits

Reduced compliance costs

Simplified GST compliance and exemptions

  • Self-certification for labor and environment laws
  • Reduced compliance burden for 5 years
  • Exemption from certain inspections
  • Simplified return filing process

Potential Tax Savings

30%
Income Tax Savings
20%
Capital Gains Relief
100%
Angel Tax Exemption
80%
Patent Fee Rebate
Funding Support

Government Funding Schemes

Access various funding opportunities from seed stage to growth stage

Seed Funding

Up to ₹50 Lakhs

Early-stage funding for proof of concept and prototype development

  • Startup India Seed Fund Scheme
  • State government seed funds
  • Incubator seed programs
  • Angel networks

Fund of Funds

₹10,000 Crores

SIDBI Fund of Funds providing capital through SEBI registered AIFs

  • SIDBI FoF
  • Venture capital funds
  • Growth stage funding
  • Sector-specific funds

Credit Guarantee

Up to ₹10 Crores

Collateral-free debt funding through Credit Guarantee Scheme

  • CGSS by SIDBI
  • Bank loans without collateral
  • Working capital support
  • Growth financing

Sector-Specific Funds

Varies

Specialized funding for specific sectors and technologies

  • BIRAC for biotech
  • TIDE 2.0 for ICT
  • Clean energy funds
  • Agri-tech initiatives

Funding Journey

Seed Stage

₹10L - ₹50L

Early Stage

₹50L - ₹5Cr

Growth Stage

₹5Cr - ₹50Cr

Scale Stage

₹50Cr+

Regulatory Support

Regulatory Ease & Support

Simplified compliance and regulatory benefits to help startups focus on growth

Self-Certification

Startups can self-certify compliance with 9 labor and 3 environment laws

Reduced inspections
Faster compliance
Lower costs
Ease of doing business

Fast-Track Patent Examination

Expedited patent processing with 80% rebate on patent filing fees

Quick IP protection
Cost savings
Competitive advantage
Innovation support

Easy Exit Mechanism

Simplified winding up process within 90 days for failed startups

Quick closure
Reduced costs
Entrepreneur-friendly
Fresh start opportunity

Public Procurement Benefits

Exemption from earnest money and prior experience requirements

Government contracts
Market access
Revenue opportunities
Growth catalyst

Simplified Compliance Timeline

5 Years

Self-certification for labor and environment laws

Reduced Inspections

Fast-Track

Patent examination with 80% fee rebate

IP Protection

90 Days

Quick exit mechanism for winding up

Easy Exit

Ready to Leverage Government Support?

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