The benefits.
| Benefit | What it does | Extra condition |
|---|---|---|
| Tax holiday | Profits tax-free for 3 of the first 10 years | Board certificate. See Section 80-IAC Tax Exemption |
| Loss carry-forward | Losses kept even when shareholding changes | Original shareholders continue |
| ESOP tax deferral | Employees pay tax on exit, sale or after 5 years | Startup eligible for the tax holiday |
| Angel tax (earlier years) | Share premium exempt | Abolished from April 2024. See Angel Tax Exemption |
ESOP deferral.
Normally employees pay tax when they exercise options, before they can sell. For eligible startups, the employer withholds that tax only on the earliest of five years, leaving the company or selling the shares, which makes ESOPs far more attractive to Indian staff of UK-backed startups.
Why UK companies choose us in India.
We work with your UK finance team, lawyers and auditors, and translate Indian requirements into plain English.
Every filing and certificate is checked by a second Chartered Accountant before it goes in.
A written scope, timetable and fee before work starts.
One calendar of every MCA, RBI, GST and income-tax deadline for your Indian entity.
Set-up, accounts, payroll, tax, audit and RBI filings handled together.
Encrypted document sharing and digital signatures. Directors never need to travel.
Startup tax benefits for UK founders and investors.
We work with UK companies headquartered in every part of the UK, from start-ups in London and Manchester to established groups in the Midlands, Scotland and Wales. All the work is coordinated online with your UK team.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
DPIIT tax exemption FAQs.
Recognised startup?
Tell us your stage. We will map and claim the benefits.
This page is general guidance based on the Companies Act, 2013, FEMA, RBI directions and Indian tax law as they stand. It is not legal or financial advice for your situation. Rules, limits and deadlines can change, so please speak to us before acting on it.