How many years is a company considered a startup?

Short answerTen years from incorporation — that is the DPIIT limit, provided turnover never exceeds ₹100 crore in any financial year. Cross either line — the birthday or the turnover — and startup status ends. The 80-IAC tax holiday is a subset: any three consecutive years chosen out of the first ten.

The two clocks on startup status

DPIIT recognition lives while the entity is under 10 years old and under ₹100 crore turnover in every financial year so far. The moment a year’s turnover crosses ₹100 crore, status falls away even at age four; equally, a ₹2-crore business stops being a “startup” on its tenth anniversary. There is no renewal or extension — the certificate simply ceases to describe you.

What ending status actually changes

The self-certification conveniences, procurement relaxations and Fund-of-Funds doors close prospectively — nothing is clawed back. An 80-IAC holiday already granted for a chosen three-year block survives if the block has begun; that is why the timing of the block (pick loss years and the holiday is wasted) matters more than winning the approval. For incorporations, the 80-IAC window currently runs for companies incorporated up to 1 April 2030.

Planning the tenth year

Approaching either boundary, do three things deliberately: time the 80-IAC block against projected profits; bank the IPR fee rebates and pending facilitations while recognition lasts; and re-paper investor documents that reference “DPIIT-recognised startup” status. ESOP perquisite-tax deferral under section 80-IAC eligibility also dies with eligibility — employees exercising options need that calendar. Our startup practice maps the last two years of status so nothing lapses by accident.

Talk to CA Vijay R Singh

Nearing year ten or the Rs.100-crore line? You can message him directly, or book a short call to talk through your situation.

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This answer is general information, not professional advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.

© 2026 Vijay R Singh & Co., Chartered Accountants · FRN 136869W · ICAI M.No. 153926 · Practising since 2013

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