Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Usually: innovation not demonstrated
The Inter-Ministerial Board grants 80-IAC only to startups it considers genuinely innovative or scalable. The most common cause of rejection is a thin innovation case — a business that looks like a routine trading, reselling or conventional service with nothing distinctive. A vague write-up, no product evidence, and no clear differentiation invite a ‘no’.
The other reasons
Rejections also come from eligibility gaps — the entity is too old, isn’t a Pvt Ltd/LLP, exceeds the turnover limit, or was formed by splitting a business — or from an incomplete application (missing financials, pitch deck or details). The good news: an 80-IAC rejection is not final; you can improve the application and re-apply. Read the rejection reason carefully before re-filing.
A worked example
Example: a startup’s first 80-IAC application is rejected because its ‘innovation’ was described as ‘an online store’. It re-applies with a sharper case — the proprietary technology, the problem solved, traction and a pitch deck — and is approved. Framing the genuine innovation clearly is what turns a rejection into an approval. Our team can strengthen and re-file your 80-IAC application.