Fee Reduction

1.Can an applicant claim a reduction in official fee for a design application?

Yes, the applicant can claim a reduction in official fee if the applicant is:

• a natural person
• a startup
• a small entity

2.How much fee reduction is available under Indian Design law?

75% reduction in official fee is available if the applicant is a natural person, a startup or a small entity.

3. Who can claim a startup status?

“Startup” means-

1. For Indian entity: the entity must be recognised as a startup under Startup India Initiative.

Document required: The certificate of recognition as a “startup” from the Department for Promotion of Industrial Policy and Internal Trade.

2. For foreign entity: An entity fulfilling the criteria for turnover and period of incorporation or registration as per Startup India Initiative.

According to Notification No. G.S.R. 127(E) by Ministry of Commerce and Industry, under Startup India Initiative an entity shall be considered as a Startup if the following conditions are met:

• An entity shall be considered as a Startup for upto a period of 10 years from the date of incorporation/ registration.

• The entity must be incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.

• The turnover of the entity for any of the financial years since incorporation/ registration must not have exceeded one hundred crore rupees (approximately USD 13.7 million).

• The entity must not have formed by splitting up or reconstruction of an existing business.

Document required: Declaration stating that the conditions under Startup initiative are met, along with appropriate evidence of being Startup.

4. Who can claim a small entity status?

A company/ firm which whose investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed INR 50 crores (approximately USD 6.8 million and turnover does not exceed INR 250 crores (approximately USD 34 million).

Documents required:

1. For an Indian Applicant: Registration certificate issued under the Micro, Small and Medium Enterprises Development Act, 2006
2. For a foreign Applicant: Affidavit from an authorised representative of the Applicant stating that the Applicant is a small entity, along with appropriate evidence of being small entity as defined under the Act.

5. Can an applicant claim fee reduction in a design application even if the application is transferred from a natural person/ startup/small entity to an entity not eligible for fee reduction?

No, the fee shall be paid in accordance with the revised entity status.

Also, when an application is transferred from a natural person/ startup/ small entity to other entity not eligible for a fee reduction, the difference in official fee between that of a natural person/ startup/small entity and other entity must be paid for all the official fee paid at the Indian Design Office till the date of transfer of application.

6. Will the applicant be required to pay a difference in official fee for a design application if the startup/ small entity status ceases?

When a startup/ small entity status ceases, the difference in the official fee does not become payable. This includes a change in status of startup/ small entity due to the lapse of the period during which it is so recognized, or its turnover subsequently crosses the financial threshold limit.