DPIIT Revises Startup Definition | Introduces Deep Tech Framework

Notification No. G.S.R. 108(E); Dated: 04.02.2026

The Department for Promotion of Industry and Internal Trade (DPIIT) has revised the definition of ‘Startup’ and the eligibility criteria for recognition, superseding the earlier framework. The revised policy aims to better align startup recognition with evolving business models, innovation-led growth, and emerging technology sectors.

1. Introduction of ‘Deep Tech Startup’ Category

As part of the revised framework, DPIIT has introduced a new category of ‘Deep Tech Startup’, recognising entities engaged in advanced and complex technological innovation.

Key features of this category include:

• Extended incorporation period for eligibility
• Higher turnover limits compared to regular startups
• Focus on technology-driven innovation with long gestation periods

2. Revised Definition of ‘Startup’

Under the updated framework, a ‘Startup’ means an entity which satisfies all of the following conditions:

2.1 Eligible Form of Organisation

The entity must be incorporated or registered in India as one of the following:

• A Private Limited Company
• A Partnership Firm
• A Limited Liability Partnership (LLP)
• A Multi-State Cooperative Society registered with the Central Registrar of Cooperative Societies
• A Cooperative Society registered under any State or Union Territory Cooperative Societies Act with the respective Registrar

2.2 Period of Incorporation

• The entity must be within 10 years from the date of its incorporation or registration.

2.3 Turnover Threshold

• The entity’s turnover in any financial year since incorporation or registration must not exceed ₹200 crore.

2.4 Nature of Business Activity

The entity must be:

• Working towards innovation, development, or improvement of products, processes, or services; or
• Operating a scalable business model with a high potential for:

1. 1. Employment generation, or
   2. Wealth creation

3. Recognition Process Through DPIIT Portal

• Startup recognition must be obtained through the DPIIT online portal.
• Entities are required to submit prescribed information, declarations, and supporting documents for recognition.

4. Conditions on Deployment of Funds

The revised framework lays down specific conditions governing the deployment and utilisation of funds by recognised startups, aimed at ensuring that financial resources are used for legitimate business and innovation-related purposes.

5. Certification under Section 80-IAC

• The framework provides for certification under section 80-IAC of the Income-tax Act, enabling eligible startups to claim tax benefits.
• Certification is subject to fulfilment of prescribed conditions and approval by the competent authority.

6. Revocation of Recognition or Approval

DPIIT may:

• Revoke startup recognition or tax approval in cases of misrepresentation, non-compliance, or violation of prescribed conditions.
• Withdraw benefits granted under the framework where eligibility criteria are no longer met.

7. Relaxations in Special Cases

• The framework allows DPIIT to grant relaxations in special or deserving cases, ensuring flexibility in implementation where strict adherence may cause genuine hardship.

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