Executive Summary
- A generic, non-specific innovation narrative is the single most common rejection cause
- Applying as a proprietorship, which is structurally ineligible, wastes an entire attempt
- Incomplete incorporation before applying is a frequent, avoidable sequencing error
- Confusing DPIIT recognition with automatic tax benefit access trips up many founders
The Recurring Mistakes
Generic innovation narrative
A description that could apply to almost any business in the sector, without articulating specific novelty.
Applying as a proprietorship
Proprietorships are structurally ineligible — this wastes the entire application attempt regardless of business merit.
Applying before incorporation is complete
The Certificate of Incorporation is a required document — applying before it's issued causes immediate rejection.
Assuming recognition automatically grants tax exemption
The 80-IAC tax holiday requires a separate Inter-Ministerial Board application beyond DPIIT recognition itself.
Forming the entity by splitting an existing business
Restructured versions of pre-existing businesses are explicitly ineligible, regardless of how the new entity is framed.
How to Avoid Each One
Write the innovation narrative with specific, technical detail rather than generic industry language — see our guide on the registration process for what reviewers actually look for. Confirm entity structure eligibility — Pvt Ltd, LLP, or Registered Partnership — before beginning any application. Complete incorporation fully before applying. Understand that tax benefits require their own separate application, covered in our 80-IAC guide. And ensure the entity represents genuinely new formation, not a restructured existing business.