DSIR Recognition - Everything you need to know!

DSIR Recognition

DSIR - Department of Scientific & Industrial Research in India provided an ‘In-house R&D Recognition’ to companies registered in India. While it is not mandatory to carry out R&D activities by a company, the recognition definitely boosts a company’s claim of being innovative.

There are only 3500+ companies recognised by DSIR which includes companies like Piramal, Havell’s, Tata Group, Maruti, Syngenta Etc.

Eligiblity for DSIR Recognition

The DSIR Recognition is not handed out lightly. To qualify for this prestigious honour, companies need to meet certain stringent criteria:

• The Company should be a Pvt. Ltd. or a Ltd. company

• Should be at least 3 years old.

• Should be a product company. Services company are not eligible except CROs.

• Should have a dedicated R&D setup - this has to be read in context of the size and sector of the company.

The Benefits

• Tax Incentives: A company recognised by DSIR can claim 100% accelerated depreciation of capital expenses incurred for R&D

• Custom Duty benefits: A recognised company doesn’t need to pay any customs duty for the imports made for R&D.

• Various Govt. funds and grants have DSIR recognition

• A DSIR recognition will also boost your claim for RDI funds

• Credibility Amplification: The DSIR certificate acts as a badge of honor, showcasing a company's commitment to cutting-edge research and development. It bolsters a company's credibility in the eyes of clients, partners, and stakeholders.

Recognition Process for In-House R&D Centers:

DSIR provides a guideline that would be helpful when applying for the DSIR R&D recognition. This guideline is very generalised - the same guidelines apply to companies of all sectors and all sizes. So on both the axis - size of the company and the sector of the company, the same guideline applies.

Application Process

1. Apply online with a soft copy of the application.

2. Submit the hard copy of the same application to DSIR.

3. Meeting with DSIR - for discussion on your application.

4. Visit to your facility by the DSIR team (Only in a few cases).

5. Grant of the recognition or rejection of application.

Validity and Renewal

The DSIR certificate, secured through DSIR Certification, remains valid for three years from the date of issuance. A company needs to apply for renewal every three years before expiry.

Conclusion

While DSIR’s In-house R&D Recognition is a prestigious and valuable recognition for any company, very few companies still have it in India. There are two major reasons behind - lack of awareness and low success rate at DSIR.