The Chandigarh Startup Policy 2025 is a forward-looking initiative by the Chandigarh Administration to build a strong, innovation-driven startup ecosystem in the Union Territory. Designed in alignment with the Startup India initiative, the policy creates multiple opportunities for MSMEs, early-stage startups, and aspiring entrepreneurs through financial grants, incubation support, mentorship, and ease of doing business.
For MSMEs looking to innovate, scale operations, or transition into startup-led growth, this policy acts as a powerful support framework.
Why Chandigarh Startup Policy 2025 Matters for MSMEs
Many MSMEs struggle with access to funding, mentorship, market exposure, and compliance costs. The Chandigarh Startup Policy 2025 directly addresses these challenges by:
- Reducing early-stage financial stress through grant-based support
- Offering incubation and mentorship via recognised incubators
- Providing rental, certification, and patent cost reimbursements
- Encouraging women-led and inclusive entrepreneurship
- Enabling smoother compliance through self-certification and relaxed norms
For MSMEs working on innovative products, technology-led services, or scalable business models, this policy can significantly accelerate growth.
Vision and Objectives of Chandigarh Startup Policy 2025
Vision
To establish Chandigarh as a leading innovation-driven startup hub, promoting sustainable economic growth and entrepreneurship.
Key Objectives
- Support 200+ startups over five years
- Promote innovation from ideation to commercialization
- Strengthen incubators and industry-academia collaboration
- Generate employment and self-employment opportunities
- Encourage participation from women, youth, and underserved groups
Who Is Eligible Under Chandigarh Startup Policy 2025?
Eligible Startups
A startup is eligible if it:
- Is a Private Limited Company, LLP, or Registered Partnership Firm
- Is registered in UT Chandigarh or under GST Chandigarh
- Is recognized by DPIIT (Startup India)
- Has not completed 10 years since incorporation
- Has annual turnover below ₹100 crore
Many innovative MSMEs can qualify once they obtain DPIIT Startup recognition.
Major Benefits of Chandigarh Startup Policy 2025 for MSMEs
1. Grant-Based Financial Incentives
Idea Stage Grant
- Annual startup competition
- Top 20 startups get ₹2 lakh grant + 1 year incubation
- Next 50 startups get ₹1 lakh grant + incubation support
Seed Stage Grant (MVP Development)
- Grant up to ₹7 lakh
- Additional ₹2 lakh for women-led or transgender-led startups
Early Growth / Commercialisation Grant
- Grant up to ₹12 lakh
- Additional ₹2 lakh for women-led or transgender-led startups
Grants are released in three tranches based on milestone achievement.
2. Reimbursement-Based Incentives
Startups and MSMEs under recognised incubators can avail:
- Rental subsidy: ₹5,000 per month (up to 12 months)
- IT / Quality certification: 80% reimbursement (max ₹1 lakh)
- Patent filing support: 80% reimbursement (max ₹10,000)
- National event participation: Up to ₹50,000
- International event participation: Up to ₹2.5 lakh
- Acceleration program support:
- ₹2 lakh (national)
- ₹3 lakh (international)
These benefits significantly reduce operational and compliance costs for MSMEs.
Incubation, Mentorship & Infrastructure Support
Recognised Incubators
The policy strengthens incubators by offering:
- Technology upgrade grants up to ₹30 lakh
- Annual sustenance allowance up to ₹7.5 lakh
- Mentorship program funding up to ₹5 lakh
MSME Advantage
MSMEs can:
- Access expert mentors, investors, and service providers
- Use government-supported co-working spaces
- Participate in virtual incubation and mentor connect programs
Non-Financial Benefits for Startups & MSMEs
- Single-window access via Start-In Chandigarh Portal
- Free access to incubation facilities for one year
- Self-certification under 6 labour laws
- Relaxed public procurement norms as per MSME guidelines
- Subsidised stalls in India International Trade Fair (IITF) and similar events
Start-In Chandigarh Portal: One-Stop Platform
The Start-In Chandigarh Portal enables:
- Startup & incubator registration
- Online grant applications
- Reimbursement tracking
- Mentor & investor connect
- Access to schemes, policies, and events
This digital-first approach simplifies interaction with the government for MSMEs.
Policy Period and Implementation
- Policy valid for 5 years from notification (2025–2030)
- Implemented by the Department of Industries, Chandigarh
- Monitored by:
- High Powered Committee (HPC)
- Policy Monitoring & Implementation Committee (PMIC)
How MSMEs Can Maximize Benefits from Chandigarh Startup Policy 2025
- Obtain DPIIT Startup India recognition
- Register on Start-In Chandigarh Portal
- Partner with a recognised incubator
- Apply for grants and reimbursements early
- Participate in startup competitions, mentorship programs & expos
FAQs: Chandigarh Startup Policy 2025
What is Chandigarh Startup Policy 2025?
The Chandigarh Startup Policy 2025 is a government initiative that supports startups and MSMEs in Chandigarh by providing grants, incubation support, mentorship, rental subsidies, and reimbursement incentives to promote innovation and entrepreneurship.
Who can apply for Chandigarh Startup Policy 2025?
Any DPIIT-recognized startup registered as a Private Limited Company, LLP, or Partnership Firm in Chandigarh can apply. Innovative MSMEs can also apply after obtaining Startup India recognition.
Is Chandigarh Startup Policy 2025 useful for MSMEs?
Yes, the policy is highly beneficial for MSMEs, especially those working on innovative products or scalable services, as it offers grants up to ₹12 lakh, reduced compliance, mentorship, and market access support.
How much grant is available under Chandigarh Startup Policy 2025?
Startups can receive:
- ₹2 lakh for idea-stage startups
- Up to ₹7 lakh for seed-stage or MVP development
- Up to ₹12 lakh for early growth or commercialization
- Additional ₹2 lakh for women-led and transgender-led startups
How can MSMEs get seed funding in Chandigarh?
MSMEs can get seed funding by:
- Obtaining DPIIT Startup India recognition
- Registering on the Start-In Chandigarh Portal
- Applying through a recognised incubator for seed-stage grants
What is the Start-In Chandigarh Portal?
The Start-In Chandigarh Portal is a one-stop online platform for startup registration, grant applications, reimbursements, mentorship access, and tracking approvals under the Chandigarh Startup Policy 2025.
Are there rental subsidies for startups in Chandigarh?
Yes, startups operating from government-approved co-working spaces can get a rental reimbursement of ₹5,000 per month for up to 12 months, subject to approval.
Does the policy support women entrepreneurs?
Yes, women-led startups are eligible for additional grants of ₹2 lakh at seed and early growth stages, along with priority access to incentives and mentorship.
Can startups get support for patent filing in Chandigarh?
Yes, startups can get 80% reimbursement of patent filing costs, up to ₹10,000, under the Chandigarh Startup Policy 2025.
Is incubation mandatory to get benefits under the policy?
Yes, most financial incentives require startups to be empanelled with a recognised incubator, known as a Parent Incubator, for monitoring and fund disbursement.
What non-financial benefits do startups get under the policy?
Startups receive:
- Free incubation facilities for one year
- Access to mentors, investors, and service providers
- Self-certification under selected labour laws
- Relaxed public procurement norms
- Subsidised participation in exhibitions like IITF
How long is Chandigarh Startup Policy 2025 valid?
The policy is valid for five years from the date of notification, covering the period 2025 to 2030.
How can startups apply for Chandigarh Startup Policy 2025 incentives?
Startups must:
- Register on the Start-In Chandigarh Portal
- Select a recognised incubator
- Submit online applications for grants or reimbursements
- Get approval from the Policy Monitoring & Implementation Committee (PMIC)
Can existing MSMEs convert into startups under this policy?
Yes, existing MSMEs can benefit if they meet the DPIIT startup eligibility criteria and focus on innovation, technology, or scalable business models.
Does the policy help with market access and investor connect?
Yes, the policy provides mentor connect, investor networking, acceleration programs, startup fests, and national and international exposure opportunities.
What happens if a startup misuses grants under the policy?
If fraud or misrepresentation is found, the government can recover the grant amount and initiate legal action, as per policy provisions.
This article is written for MSMEs and aspiring entrepreneurs to simplify government schemes and support informed business decisions