What Is Form 80/IAC?
This form is required to recognize your business as a registered startup. It is one of the vital steps for getting all the benefits of a startup.
Under the Startup India Action Plan, startups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program.
Eligibility Criteria for Startup Recognition
- The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
- Turnover should be less than INR 100 Crores in any of the previous financial years
- An entity shall be considered as a startup up to 10 years from the date of its incorporation
Form 80/IAC Eligibility Criteria
Eligibility Criteria for applying to Income Tax exemption (80/IAC):
- The entity should be a recognized Startup
- Only Private Limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC
- The Startup should have been incorporated after 1st April, 2016
Requirement for Form 80/IAC
- Memorandum of association (for Pvt Ltd) or LLP Deed (for LLP)
- Board Resolution (if any)
- Annual Accounts & Income Tax returns of the startup for the last three financial years
Toolkit for Financial Statements
- Updated financial statements (Balance Sheet, Profit & Loss statement, Income Tax Returns) for the past three years or from the year of incorporation
- Note – The Balance Sheet and the Profit and Loss Statement must be CA Certified
- Note – If your startup was incorporated on 1st April 2018 or later, Income Tax Returns (ITR) is not mandatory. For startups incorporated earlier, ITR is mandatory
- Startup Video Link
Toolkit for Video Link
- The video should be of a maximum of 2 minutes and should cover the following aspects:
- Brief about what your startup does or is planning to do
- Showcase the working of the prototype/proof-of-concept developed by you
- Market traction that your product/service has generated till now, if your product/service has already been launched in the market
- Note: Please upload the Video on a third-party video hosting platform such as Youtube or Vimeo. In case you are uploading on Google Drive please make sure that it is NOT access restricted
- Pitch deck
Toolkit for Pitch Deck
- Pitch deck (Maximum 5 slides). Your pitch deck must have the following:
- Information about the product/service offering of your startup
- Brief about how is your startup innovative and/or scalable
- Number of people employed by your startup and funding raised, if any
- Credentials of Founders/Management
- Screenshots/images of your product/website and website link, if any.
Form 80/IAC Registration Package
We currently provide a single fee package for registering your form 80 IAC:
- Memorandum creation
- Other accounting requirements
- Tool kit for financial statements
- Tool Kit For Video Link
- Tool Kit For Pitch Deck
Frequently Asked Questions (FAQs)
Here are the answers to the basic questions that one might ask while applying for form 80 IAC registration.
What are the benefits of form 80 IAC?
The benefit under section 80IAC allows startups with up to ₹25 crore in sales to deduct their entire income from eligible operations while calculating taxable income.
What are the conditions under section 80 IAC for taking tax exemption under startup?
Eligibility Criteria for applying to Income Tax exemption (80IAC): The entity should be a DPIIT recognized Startup. Only Private Limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.