- Maximum benefit
- Seed grant ₹5 lakh (+ up to ₹10 lakh second tranche for at most 20 start-ups a year) + 8% interest subsidy up to ₹7 lakh a year
- Who can apply
- Micro, Small, Medium enterprises, for specific activities only
- Status
- Open
Is Punjab Start-up Policy 2026 open? Key facts at a glance
Punjab Start-up Policy 2026 (Punjab): Seed grant ₹5 lakh (+ up to ₹10 lakh second tranche for at most 20 start-ups a year) + 8% interest subsidy up to ₹7 lakh a year.
Last verified: 20 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Punjab State scheme |
| Type of benefit | Seed Grant + Lease Rental + Interest Subsidy |
| Maximum benefit | Seed grant ₹5 lakh (+ up to ₹10 lakh second tranche for at most 20 start-ups a year) + 8% interest subsidy up to ₹7 lakh a year |
| Project cost range | Not applicable |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing, Service). Only for: Only for start-ups recognised under the DPIIT definition (company, registered partnership, LLP or co-operative; up to 10 years old and turnover up to ₹200 crore, or 20 years and ₹300 crore for deep-tech) that are located, incubated or operating in Punjab and registered with the Start-up Punjab Cell. |
| Implementing agency | Department of Industries & Commerce, Punjab (Start-up Punjab Cell; Director of Industries is the nodal officer) |
| Where to apply | Start-up Punjab portal |
| Official notification | Read the notification (PDF) · notified 8 March 2026 |
| Last verified | 20 Oct 2026 · How we check |
What is Punjab Start-up Policy 2026?
Notified on 8 March 2026 with the other sectoral policies of IBDP 2026 (Punjab Govt. Gazette Extraordinary, notification No. PIU/IBDP-2026/Sectoral Policies/907, pages 1521–1525), with no end date.
It covers start-ups recognised under the DPIIT definition — a company, registered partnership, LLP or co-operative up to 10 years old with turnover up to ₹200 crore (deep-tech: 20 years and ₹300 crore) — that are located, incubated or operating in Punjab and registered with the Start-up Punjab Cell (clauses 2 and 4); incentives run for three years (clause 1).
Each start-up can get a seed grant of ₹5 lakh, and up to 20 start-ups a year a second tranche of up to ₹10 lakh, 18 months after the first, based on performance; start-ups moving into Punjab may apply for the second tranche directly (clause 2(iv)–(v), 3(i)).
It also reimburses 25% of the lease rental in incubators, IT parks, industrial clusters or notified parks for three years, up to ₹5 lakh a year (3(ii)), gives an interest subsidy of up to 8% a year (or the actual rate) up to ₹7 lakh a year for three years (3(iii)), and a purchase preference in government orders up to ₹10 lakh, for three orders (3(iv)).
Official notification (PDF) · notified 8 March 2026
What are the key benefits of Punjab Start-up Policy 2026?
- Seed grant of ₹5 lakh per start-up; a second tranche of up to ₹10 lakh for at most 20 start-ups a year, 18 months after the first, based on performance (clause 3(i)).
- 25% of the lease rental in incubators, IT parks, industrial clusters or notified parks, for three years, up to ₹5 lakh a year (clause 3(ii)).
- Interest subsidy of up to 8% a year (or the actual rate), up to ₹7 lakh a year, for three years (clause 3(iii)).
- Purchase preference in government orders up to ₹10 lakh, for three orders (clause 3(iv)).
What could a unit get under Punjab Start-up Policy 2026?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: Seed grant ₹5 lakh (+ up to ₹10 lakh second tranche for at most 20 start-ups a year) + 8% interest subsidy up to ₹7 lakh a year
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Punjab Start-up Policy 2026 — Punjab Govt. Gazette (Extra.), 8 March 2026 — Sectoral Policies notification No. PIU/IBDP-2026/Sectoral Policies/907, pages 1521–1525; procedure in the Detailed Schemes & Operational Guidelines 2026, clause 6.8.
Who can apply for Punjab Start-up Policy 2026?
- Start-ups under the DPIIT definition: a company, registered partnership, LLP or co-operative, up to 10 years old with turnover up to ₹200 crore (deep-tech: up to 20 years and ₹300 crore) (clause 2).
- Located, incubated or operating in Punjab and registered with the Start-up Punjab Cell (clause 4); start-ups moving into Punjab may apply for the second tranche directly (clause 2(iv)–(v)).
Eligible business types
MSME categories covered
Eligible industries
How do I apply for Punjab Start-up Policy 2026?
- Register on the Start-up Punjab portal (Form SR) and apply for seed funding (Form SF). The nodal agency forwards applications to the Start-up Coordination Committee and the State Level Committee (DSOG 2026 clause 6.8).
- Claim the interest subsidy (Form IS) and the lease rental reimbursement each year; payments are made by direct benefit transfer.
Apply at: Start-up Punjab portal
Which documents are needed for Punjab Start-up Policy 2026?
- DPIIT start-up recognition certificate
- Registration with the Start-up Punjab Cell (Form SR)
- Certificate of incorporation or registration
- Proof of location, incubation or operation in Punjab
- Lease deed and rent receipts (for the lease rental claim)
- Loan sanction and interest certificate (for the interest subsidy claim)
Why are Punjab Start-up Policy 2026 applications rejected?
- No DPIIT recognition, or older or larger than the DPIIT limits
- Not registered with the Start-up Punjab Cell
- Not located, incubated or operating in Punjab
- Second tranche sought before 18 months, or beyond the 20 start-ups a year
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about Punjab Start-up Policy 2026
- Is Punjab Start-up Policy 2026 open?
- Yes, it is open for applications. Status last verified: 20 Oct 2026.
- Who can apply for Punjab Start-up Policy 2026?
- Micro, Small, Medium enterprises (Manufacturing, Service). Only for: Only for start-ups recognised under the DPIIT definition (company, registered partnership, LLP or co-operative; up to 10 years old and turnover up to ₹200 crore, or 20 years and ₹300 crore for deep-tech) that are located, incubated or operating in Punjab and registered with the Start-up Punjab Cell.
- What is the maximum benefit under Punjab Start-up Policy 2026?
- Seed grant ₹5 lakh (+ up to ₹10 lakh second tranche for at most 20 start-ups a year) + 8% interest subsidy up to ₹7 lakh a year.
- How do I apply for Punjab Start-up Policy 2026?
- 1. Register on the Start-up Punjab portal (Form SR) and apply for seed funding (Form SF). The nodal agency forwards applications to the Start-up Coordination Committee and the State Level Committee (DSOG 2026 clause 6.8). 2. Claim the interest subsidy (Form IS) and the lease rental reimbursement each year; payments are made by direct benefit transfer. Apply at: Start-up Punjab portal.
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