Income Tax Exemption: Startups enjoy a three-year income tax exemption from the date of incorporation if certified by the Inter-Ministerial Board. Recognition from DPIIT and a share capital limit of ₹25 Crore exempt them from capital gains tax under Section 56 of the Income-tax Act.

Financial Support and Intellectual Property Rights (IPR) Rebates: Startups receive an 80% rebate on patents and 50% on trademarks for IPR costs. Government-facilitated assistance in protecting and commercializing IPRs, along with fast-tracked examination and disposal of IPR applications, is also provided.

Simplified Registration Process: The Startup India scheme offers a networking platform and assistance to simplify the intricate startup registration process. A government-backed problem-solving window is established to address registration challenges.

Funding Opportunities and Regulatory Ease: Certified startups in some states may receive seed funding. The scheme allows startups to self-certify compliance for six labour laws and three environmental laws, reducing regulatory burdens. No labour law inspections are conducted for five years unless there is a verifiable complaint.

Public Procurement and Exit Benefits: Certified startups can list on the Government e-Marketplace, gaining access to government procurement opportunities. Exemptions on earnest money deposit and turnover/experience requirements are granted. The government facilitates faster exit with provisions for winding down operations, appointing insolvency professionals, and recognizing limited liability, allowing a complete exit within 90 days for eligible startups.