Abstract

The DPIIT recognition, established under the initiative Startup India, is a program by the Department for Promotion of Industry and Internal Trade (DPIIT) that grants recognition to startups that fulfil specific eligibility criteria, providing an edge to foster the startups in the market. This paper examines the DPIIT recognition program’s effect from the company law perspective. The paper is divided into two parts; the first part outlines the concept of DPIIT recognition, emphasising its advantages for startups and its alignment with the Sustainable Development Goals. Moreover, it delves into the challenges linked to this recognition, such as qualification requirements and potential legal ambiguities within company law. The second part of the paper includes detailed case studies of startups that have received DPIIT recognition, including their business models, growth trajectory, and the specific benefits they derived from the recognition. This section explores this recognition’s immediate and long-term impacts on individual startups and the broader Indian economy.

The research methodology used in this paper is a secondary data analysis approach involving research from statutes, existing reports, and databases from government and company sources to examine the impact of DPIIT recognition on Indian startups. The paper discusses the practical implications of DPIIT recognition for Indian startups and company law. This paper suggests potential improvements to bridge existing gaps and ensure a more efficient and transparent legal environment for recognised startups. These potential improvements could include simplifying the qualification criteria for DPIIT recognition, enhancing the legal framework for protecting intellectual property rights, and promoting better corporate governance practices among startups.

Keywords: DPIIT Recognition, Indian Startups, Company Law, Startup Ecosystem