The Department of Scientific and Industrial Research (DSIR) provides recognition to in-house R&D units of companies that are engaged in manufacturing or production, or in rendering technical services. Companies that are engaged in contract research and also those engaged in research only at present but have plans to start manufacture at a later date are also eligible to avail recognition. The in-house R&D units applying for recognition to DSIR are expected to be engaged in innovative research & development activities related to the line of business of the firm, such as, development of new technologies, design & engineering, process/product/design improvements, developing new methods of analysis & testing; research for increased efficiency in use of resources, such as, capital equipment, materials & energy; pollution control, effluent treatment & recycling of waste products or any other areas of research. While making application for recognition, the company should have a dedicated and functional R&D unit engaged in development of innovative product and/or technology. After getting recognition, it is valid for 3 years from the date of the receipt of the recognition and can be renewed again for another 3 years by renewal procedure.
We at IPLF have a dedicated and experienced team that work on all sorts of government registration and hence are well placed in assisting clients with getting recognition and approval of the DSIR from the scratch. We understand that the procedure of getting recognition and approval of DSIR could be quite intimidating for certain clients but our team shall assure a smooth process so that an eligible company does not miss out on the various perks that come with such recognition.
- The first step is to check the eligibility of the client/entity to get DSIR recognition. Our team does a thorough financial, R&D facility and policy, and management level due-diligence so as to confirm whether the entity is eligible to get the DSIR recognition.
- Our team then assists in preparing the necessary documentation and acquiring the requisite information for registering online at the DSIR website as part of the DSIR recognition process.
- Our team shall then prepare the online application for an efficient submission with all the appropriate details and the hard copy of the application is then sent to the DSIR.
- The DSIR sends in a team to meet the authorities of the company and examines the R&D center.
- After a careful evaluation of the documents and physical inspection of the premises, the DSIR grants recognition or rejects it on the basis of their scrutiny.
- Name of the company and its nature of business
- PAN of the company
- Aadhar Number of the Applicant
- Company Registration Number and Date
- Brief History of the Company
- Structure of the company
- Certificate of incorporation of your company
- Address of the company and the R&D unit
- Capital structure of the company
- Annual turnover of the company in the last 3 years
- Number of manpower including the R&D sector
- R&D expenditures undertaken by the company in the last three years, current year and the upcoming three years (estimated).
1. What are the benefits of getting DSIR Recognition?
The benefits of getting recognition of the in-house R&D units of your company are plenty:
- No custom charges on the R&D purchases
- An income tax benefit of around 150%
- Save around INR 15-17 lacs on per crore expenses on R&D
- Receive grants/funds from the Government
- GST benefits
- It gives your company a global branding
2. What kind of companies can apply for recognition of DSIR?
In order to get DSIR recognition, your company must be at least three years old. It’s also essential that the company is registered in India under the Companies Act and is involved in manufacturing or rendering software services.
3. Does the company need to show an annual turnover of one crore for getting DSIR recognition?
No, it is not essential to show an annual turnover of one crore. There have been many instances of MSME companies with annual turnover of less than one crore getting recognition.
4. What kinds of R&D activities are covered under DSIR Recognition?
- Any new product development of a product that the company is already making. It is not required to innovate a new product.
- Any new process development relating to reducing costs or value addition or reverse engineering of the existing product.
- Import substitution i.e. any product developed by a company which can replace an existing imported product
5. Can a Contract Research Company apply for recognition?
Yes, contract research organizations can apply for recognition of DSIR if they have an independent R&D Facility. However, these companies cannot avail the direct tax benefits under the recognition scheme.
6. Can a company with no manufacturing unite avail the recognition?
Yes, companies that are at least three years old and are engaged in R&D at present with future plans of setting up manufacturing unit can also avail the recognition services. However, these companies cannot avail the direct tax benefits under the recognition scheme.
7. Can research institutes apply for recognition of DSIR?
No, this scheme is only for companies involved in manufacturing and production.