Madhya Pradesh Startup Policy 2022: Lease Rental Assistance

• DPIIT-recognised Madhya Pradesh startups seeking office lease rental assistance.

About this scheme

The Madhya Pradesh Startup Policy 2022 introduces a targeted lease rental assistance program, a strategic initiative designed to bolster the operational infrastructure of DPIIT-recognized startups based within the state. Spearheaded by the Department of MSME, Government of Madhya Pradesh, this program is a testament to the state's commitment to nurturing a thriving entrepreneurial ecosystem. The Department's core mandate involves fostering the growth and competitiveness of micro, small, and medium enterprises, and creating a supportive environment for new businesses. This aligns perfectly with the broader objectives of the state's startup policy, which aims to stimulate economic development, encourage innovation, and drive job creation through robust entrepreneurship.

Through this program, eligible startups can receive crucial financial support in the form of reimbursement for their monthly lease rentals. The assistance is substantial, covering 50% of the documented monthly lease cost, with a maximum cap set at Rs. 5,000 per month. This valuable support is extended for a significant period of up to three years from the commencement of the lease, providing long-term stability for nascent businesses. Funds are disbursed on a reimbursement basis, necessitating that startups consistently submit valid rent receipts. These submissions facilitate quarterly payments or adhere to the disbursement schedule managed efficiently through the dedicated MP Startup portal.

The funding is specifically allocated to mitigate the costs associated with leasing operational workspace exclusively within Madhya Pradesh. This broad eligibility encompasses a variety of professional environments, including facilities located within recognized incubators, specialized IT parks, or designated industrial zones across the state. By alleviating a significant operational expense like rent, the lease rental assistance empowers startups to channel their precious financial resources more effectively into core areas such as innovation, product development, market expansion, and talent acquisition, thereby strengthening their foundational growth and accelerating their journey towards sustainability and success.

Who can apply

• **DPIIT Recognition**: The startup must hold valid recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This ensures that the applicant is officially acknowledged as an innovative startup, aligning with national policy objectives.
• **Madhya Pradesh Registration**: The startup must be formally registered and based in Madhya Pradesh. This criterion ensures that the program directly benefits the state's local economy and entrepreneurial ecosystem.
• **Workspace Location**: The operational workspace for which lease rental assistance is sought must be physically located within Madhya Pradesh. This reinforces the state-centric nature of the support.
• **Lease in Startup's Name**: The lease agreement for the workspace must be legally executed and in the official name of the startup, demonstrating formal operational presence.
• **Active Lease Deed**: The lease deed for the workspace must be current, active, and legally valid throughout the period for which assistance is claimed.
• **Continuous Documentation**: Ongoing submission of accurate and valid monthly rent receipts is mandatory to facilitate the periodic reimbursement payments.

Eligible entity types: Private Limited, LLP, Partnership

Benefits & funding

• Financial support covering 50% of monthly lease rental, up to Rs.
• 5,000/month, for DPIIT-recognized startups in Madhya Pradesh, for up to three years.
• This reimbursement helps reduce operational costs, freeing up capital for innovation, product development, market expansion, and talent acquisition, thereby supporting growth and accelerating sustainability.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with Department of MSME, Government of Madhya Pradesh, in your own name.

1. 1

   Startups apply online via the official MP Startup portal, submitting their DPIIT recognition certificate, lease deed, monthly rent receipts, and bank details.

2. 2

   Applications and documents undergo verification for eligibility and subsequent reimbursement processing.

Documents checklist 4

• DPIIT Certificate
• Valid Lease Deed
• Monthly Rent Receipts
• Bank Details

Need help getting these in order? IncorpX provides assistance for incorporation, DPIIT recognition, MSME and GST registrations along with document preparation.

Frequently asked questions