Eligibility Under Startup India

• The JV must be registered as a private limited company, partnership firm, or LLP.
  
• It must have been incorporated in India within the last 10 years.
  
• The turnover must not have exceeded ₹100 crore in any previous financial year.
  
• The entity must be working toward innovation, development, or improvement of products or services, or have a scalable business model with high potential for employment or wealth creation.
  
• The JV must not be formed by splitting or reconstructing an existing business.
  

DPIIT Recognition Process

• The JV must apply for DPIIT recognition on the Startup India portal.
  
• Basic details of incorporation, directors, and business activities must be submitted.
  
• The application requires a description of innovation or a unique offering.
  
• Supporting documents like the Certificate of Incorporation, PAN, and a pitch deck or business plan may be required.
  
• Once approved, the entity receives DPIIT recognition and is officially registered as a Startup.
  

Ownership and Partnership Conditions

• There is no restriction on a JV being a startup if its structure aligns with Startup India norms.
  
• Foreign or government partners are allowed if the controlling entity is Indian.
  
• Even if the JV is promoted by established entities, it can qualify if it is genuinely a new and independent venture.
  
• The founders or partners must be actively involved in the innovation or operations.
  
• The partnership agreement must not contradict the startup criteria of originality and independence.
  

Benefits Available to Eligible JV Startups

• Income tax exemption for 3 consecutive years under Section 80-IAC.
  
• Exemption from angel tax under Section 56(2)(viib) for eligible investments.
  
• Faster IPR filings with rebates and legal support.
  
• Access to funding, incubation, and mentoring through government-recognized platforms.
  
• Self-certification under nine labor and three environmental laws.
  

Compliance and Monitoring

• The JV startup must continue to meet Startup India criteria throughout the benefit period.
  
• Periodic updates or compliance documents may be required by DPIIT.
  
• DPIIT reserves the right to withdraw recognition if eligibility is violated.
  
• JV partners must ensure operational independence and legal clarity to maintain recognition.
  
• Financial transparency and innovation documentation strengthen continued eligibility.