SIP-EIT Scheme - Patent Subsidy for MSMEs - IndiaFilings

SIP-EIT Scheme

The Department of Electronics and Information Technology (DeiTY) has launched a scheme entitled “Support for International Patent Protection in E&IT (SIP-EIT)” to provide financial support to MSMEs and Technology Start-Up units for international patent filing. SIP-EIT Scheme captures the growth opportunities in the area of information technology and electronics. This scheme encourages indigenous innovation and also recognise the value and capabilities of global IP. In this article, we look at the SIP-EIT Scheme in detail.

Benefits of the Scheme

Some of the salient features and benefits of the SIP-EIT scheme are as follows:
  • Financial support is provided for international filing in Information Communication Technologies and Electronics sector.
  • The Reimbursement limit has been set to the maximum of Rs. 15 Lakhs per invention or 50% of the total charges incurred in filing and processing of a patent application, whichever is lesser.
  • This support scheme can be applied at any stage of international patent filing by the applicant. However, the reimbursement will only be applicable to expenditures incurred from the date of acceptance of a complete application by DeiTY subject to the approval of the competent authority.

Eligibility Criteria

In general, to qualify for the SIP-EIT scheme, the companies should fall under any of the following criteria:
  • The company must be registered with the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 of Government of India.
  • The applicant must be a registered company following the Companies Act of Government of India and must fulfill the investment limits in plant and machinery or equipment as defined in the MSMED Act 2006 as amended from time to time
  • A company to be a registered Software Technology Park unit and its amount of investments in PME must be lower than the limits specified under the MSMED Act, 2006.
  • A company must be a technology incubation startup or an enterprise or located in an incubation centre/park and registered as a company. A startup must also have a certification from the incubation centre/park in case it is located on such premises. These companies, too, have to meet the investment limits for PME defined under the MSMED Act, 2006.

Documents Required

The applicants must furnish the following documents along with the Application Form to apply for the SIP-EIT Scheme.
Type of Units Documents to be Uploaded
In case of MSME unit under the MSME Development Act 2006, Company under Companies Act and a registered STPI unit
  • Scanned copy of Registration Certificate
For a Technology Incubation Enterprise/Start-Up and registered as a company  
  • Copy of Registration Certificate provided by a competent authority
  • Upload a copy of last audited Balance Sheet
If the Applicant is an employee or Member of Board of Directors
  • Copy of product brochure
  • Copy of latest Annual Report
  • Copy of official filing receipt (OFR) submitted with Indian Patent Office
If applied for PCT/ Paris Convention or Direct International Filing
  • Copy of proof of the same
  • Copy of technical write-up of invention
  • Upload the patent search report
  • Copy of Details for transfer of e-payments
  • Copy of Declaration form duly signed and sealed by the concerned
Auditor’s statement that they satisfy the criteria of investment in plant and machinery (as the case may be)
  • Upload the documents related to the investment in capital equipment.

Financial support

The reimbursement of expenses incurred in International Patent Protection will be in instalments and will be disbursed as tabulated below:
S.No. Filed Applications Financial support
1 For applications filed directly in a foreign country after meeting the requirements of Section 39 25% of the charges acquired in Filing of patent application in respective foreign geography will be reimbursed.
75% of the expenses acquired subsequent to filing up to grant will be refunded after the grant of the patent.
2 For applications filed in a foreign country within 12 months of filing a patent application in India (Convention application) 25% of the expenses acquired in Filing of patent application in respective foreign geography will be reimbursed.
75% of the expenses acquired subsequent to filing up to grant will be reimbursed after the grant of the patent.
3 Applications filed through the PCT route 25% of the charges acquired in filing a PCT application will be reimbursed subject to ISR report. 25% of the expenses included in the examination will be paid if the examination report is positive.
25% of the charges acquired in filing national phase application in a foreign country.
75% of the expenses acquired subsequent to National filing up to grant will be refunded after the grant of the patent.

Application Procedure

The applicants can visit the DeiTY website or ICT-IPR portal to apply for the SIP-EIT SchemeThen the applicant has to fill out the application form in a prescribed format online. After completing, upload all the specified records along with the application form. The recommended applications will then be processed finally at DeiTY for the approval.
SINDUJA S
Updated on: December 17th, 2019

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...