Punjab Startup Policy: Seed Funding for DPIIT Startups

• DPIIT-recognised Punjab startups at MVP stage seeking seed funding.

About this scheme

The Punjab Startup Policy: Seed Funding for DPIIT Startups is an initiative by the Department of Industries & Commerce, Government of Punjab, operating under the Startup Punjab program. This policy aims to foster innovation and entrepreneurship within the state by providing crucial financial support to emerging businesses. The Government of Punjab is committed to developing a thriving startup ecosystem by enabling promising ventures with the resources needed for early-stage development and market entry. The broader 'Startup Punjab' program serves as a comprehensive framework dedicated to accelerating the growth of innovative enterprises across the state.

The program offers a substantial seed grant of up to Rs. 15,00,000 (Rs. 15 Lakh) per DPIIT-recognized startup. A key aspect of this policy is its commitment to supporting a broad range of innovative companies, with no explicit upper cap on the number of beneficiaries, ensuring that a greater number of deserving startups can access the necessary capital to advance their projects.

The funding is specifically designed to support critical early-stage activities. Eligible expenses include efforts related to proof of concept development (e.g., initial research, feasibility studies), advanced prototype creation (e.g., material costs, engineering, testing), essential market validation studies (e.g., customer surveys, pilot programs), and initial commercialization efforts (e.g., early marketing, sales strategy development). This comprehensive support helps startups bridge the gap between initial ideation and successful product launch, significantly de-risking their journey.

Beyond direct financial aid, the policy aims to integrate startups into the broader entrepreneurial network. While specific direct non-monetary support mechanisms are not detailed, the overall framework encourages engagement with Punjab-based recognized incubators. This connection provides startups with indirect access to invaluable resources, including expert mentorship, strategic networking opportunities with industry leaders and potential investors, and a collaborative co-working environment, all vital for growth.

The Department of Industries & Commerce, Government of Punjab, is the nodal agency for industrial development and investment promotion in the state. Its mandate includes creating a conducive business environment, attracting investments, and fostering entrepreneurship across various sectors. Through initiatives like Startup Punjab, the department plays a crucial role in shaping the state's economic future by nurturing innovative enterprises.

Who can apply

• The startup must hold valid recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This ensures the applicant meets national startup criteria, validating its innovative nature and scalability for government support.
• The startup must be registered and actively conducting its operations within the state of Punjab. This criterion is fundamental to strengthening the local startup ecosystem and ensuring that the investment directly benefits Punjab's economy and job creation.
• The startup's offering must be an innovation-led product or service, demonstrating novelty and a potential for significant impact or disruption in its target market. This focus aligns with the policy's goal of fostering technological advancement and addressing unmet needs.
• Startups that are currently at the prototype or Proof of Concept (PoC) stage are strongly preferred for this program. This preference indicates the policy's commitment to supporting ventures at a critical early juncture, helping them validate their core ideas before scaling up.
• A recommendation from a Punjab-based recognized incubator is preferred as part of the application. While not strictly mandatory, such a recommendation can significantly strengthen an application, indicating that the startup has already undergone some level of vetting and support from an established ecosystem player.

Eligible entity types: Private Limited, LLP, Partnership

Benefits & funding

• Provides a seed grant of up to Rs.
• 15 Lakh for DPIIT-recognized startups.
• Indirect access to invaluable resources through recognized incubators, including expert mentorship, strategic networking opportunities with industry leaders and investors, and a collaborative co-working environment.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with Department of Industries & Commerce, Government of Punjab, in your own name.

1. 1

   Applications are submitted through the official Punjab Industries or Invest Punjab portal with a DPIIT certificate, company registration, project proposal, and founder profiles.

2. 2

   The State Startup Empowered Committee evaluates applications on innovation, market potential, team strength, and alignment with Punjab's startup policy objectives.

3. 3

   Selected startups receive a seed grant of up to Rs.

Documents checklist 5

• DPIIT Certificate
• Registered Company Documents
• Project Proposal
• Founder Profiles
• Incubator Recommendation

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

Frequently asked questions