Government schemes for NRI & OCI founders in India.
Most central startup schemes accept Indian-incorporated entities with NRI / OCI shareholders. A few have hard exclusions. GIFT IFSC changes the math entirely for cross-border founders with a 20-year tax holiday and 100% NRI fund ownership. Here's the full picture.
Three categories of eligibility
Indian government schemes treat NRI and OCI founders in three distinct ways:
- Eligible. Most central schemes accept Indian-incorporated entities with NRI / OCI shareholders or directors — DPIIT recognition, Section 80-IAC, SISFS, FFS, CGSS, SAMRIDH, IN-SPACe, iDEX. The entity is Indian; founder citizenship is not the gating criterion.
- Treated as Indian. NIDHI-PRAYAS, NIDHI-EIR, NIDHI-SSS, TDB, TIDE 2.0 — DST schemes that explicitly treat OCI / PIO holders as Indian for eligibility.
- Excluded. BIRAC BIG hard-excludes OCI / PIO — Indian citizens only. Stand-Up India and MUDRA depend on bank policy and may require residency.
GIFT IFSC: the regime-level alpha
For NRI founders building cross-border businesses (fintech, asset management, fund management, insurance, aircraft leasing), GIFT IFSC is the most impactful regime to know about. Budget 2026-27 extended the tax holiday from 10 to 20 years. Cat III AIF non-resident unitholders get zero capital gains tax. 100% foreign ownership of fund vehicles is allowed. The IFSCA FinTech Sandbox is the most globally oriented sandbox in India, accepting FATF-compliant foreign entities.
Practical recommendations
Before applying, NRI / OCI founders should check three things on each scheme: (a) the shareholding rule, (b) the director-residency rule under the Companies Act, and (c) any citizenship-of-promoter clause in the scheme guidelines. Many schemes are silent on founder nationality and rely solely on entity incorporation. Always verify on the official portal — this site is a reference, not legal advice.
Schemes that apply
15 schemes
DPIIT Startup India Recognition
The gateway credential. Itself free, but unlocks 80-IAC tax holiday, IP fee rebates, labour self-cert, GeM access, SISFS eligibility. First filing post-incorporation.
Section 80-IAC — Income Tax Holiday
100% tax deduction on profits for 3 consecutive years out of first 10. Approval rate ~1.8% — IMB scrutiny is rigorous. Time the 3-year window strategically.
Fund of Funds for Startups (FFS) 1.0 & 2.0
FFS doesn't fund startups directly — backs SEBI AIFs which deploy 2× SIDBI commitment into DPIIT startups. FFS 2.0 (Apr 2026): another ₹10,000 Cr with Deep Tech carve-out.
Startup India Seed Fund Scheme
Up to ₹20 L grant for PoC/prototype + up to ₹50 L convertible/debt for market entry. Apply to up to 3 incubators. ₹605+ Cr deployed to 3,400+ startups.
Credit Guarantee Scheme for Startups
Credit guarantee on loans up to ₹20 Cr (doubled from ₹10 Cr in May 2025). Cover 85% up to ₹10 Cr, 75% above. AGF reduced to 1% p.a. for 27 Champion Sectors.
SAMRIDH — MeitY Startup Accelerator
Up to ₹40 L matching investment via accelerator. ~300 startups targeted; 373 supported as of Feb 2026.
Technology Development Board
Soft loans (up to 50% project cost) or equity at concessional rates ~5-9%. Suited for hardware/IP-heavy ventures.
NIDHI-PRAYAS
Up to ₹10 L for prototype development. Routed through TBIs.
NIDHI-EIR — Entrepreneur in Residence
Monthly stipend (~₹30K) for 12 months to de-risk quitting your job. Underused — gives runway before company formation.
NIDHI-SSS — Seed Support Scheme
Up to ₹1 Cr per startup via incubator as loan, equity, or equity-linked. NRI-friendly.
IFSCA FinTech Sandbox
Most globally oriented sandbox. Combined with 20-yr GIFT IFSC tax holiday, regime-level alpha for cross-border fintech.
GIFT City IFSC — 20-Year Tax Holiday
20-year tax holiday (extended from 10 in Budget 2026-27). 100% NRI/OCI fund ownership. Zero capital gains for non-residents in Cat III AIFs.
SIP-EIT — International Patent Support
Up to ₹15 L per invention (or 50% of cost) for international patent filing.
SIPP — Startup IP Protection
80% rebate on patent fees + 50% on trademarks + expedited examination (4-6× faster). Free facilitators.
MeitY TIDE 2.0
Up to ₹7 L for IT product startups via empanelled incubators.
Frequently asked questions
Can an NRI or OCI founder apply for Startup India recognition?+
Yes — DPIIT Startup India Recognition is granted to entities (Pvt Ltd, LLP, Partnership, Cooperative) incorporated in India. The founder's NRI or OCI status does not disqualify the entity, as long as the company is Indian-incorporated and meets the age, turnover and originality criteria.
Are there any Indian government schemes that explicitly exclude OCI holders?+
Yes — BIRAC BIG (Biotechnology Ignition Grant) is restricted to Indian citizens only and explicitly excludes OCI and PIO holders. Some demographic schemes and certain bank-administered MSME loans may also require Indian residency. Always check the specific scheme guidelines.
What is the GIFT IFSC 20-year tax holiday?+
GIFT City IFSC is India's international financial services centre. Entities set up there get a 100% tax holiday on profits for 10 years out of any 15 consecutive years — extended in Budget 2026-27 from a previous 10-year cap to effectively a 20-year regime. Non-resident unitholders in Cat III AIFs also enjoy zero capital gains tax. Especially valuable for cross-border fintech, asset management and insurance startups.
Can I set up a 100% NRI-owned company in GIFT IFSC?+
Yes. 100% foreign ownership is allowed for IFSC fund vehicles and most IFSC business categories. This is significantly more permissive than mainland India for many financial-sector activities.
Do I need to be physically resident in India to be a startup founder?+
No. Indian incorporation (Pvt Ltd, LLP, Partnership) does not require all directors / partners to be resident in India. The Companies Act, 2013 requires at least one director to be resident in India for ≥182 days in a financial year — this can be a co-founder, a professional director, or a family member. Many NRI-led Indian startups operate this way.