In a major boost to entrepreneurial innovation, the Government of India has announced special incentives for startup units operating as Limited Liability Partnerships (LLPs). This policy initiative, unveiled jointly by the Ministry of Corporate Affairs (MCA) and the Department for Promotion of Industry and Internal Trade (DPIIT), aims to extend parity of benefits between LLPs and private limited companies in the startup ecosystem. The new scheme recognizes the increasing preference for LLPs among founders seeking operational flexibility and ease of compliance.

Under the revised Startup India framework, LLP startups recognized by DPIIT will now be eligible for key incentives, including income tax exemption under Section 80-IAC for three consecutive years, fast-tracked intellectual property (IP) protection, and priority access to government-backed seed funds and credit guarantee schemes. Furthermore, these LLPs will be able to self-certify compliance under nine labor and three environmental laws, thereby significantly reducing regulatory friction during early growth stages. The initiative will also support women-led and rural LLP startups with targeted financial and mentorship programs.

Officials stated that this move would help unlock the potential of thousands of innovative startups operating under the LLP model, especially in service sectors such as fintech, design, health tech, and sustainability. Legal experts and startup advocates have welcomed the announcement, calling it a long-awaited step to remove structural bias and promote entity-neutral policy support. The government has also assured the rollout of integrated digital registration and incentive claim modules via the Startup India portal, enabling seamless access to benefits for qualifying LLPs.