Startup Policy

Startup Policy

Uttar Pradesh Startup Policy 2026

The Uttar Pradesh Startup Policy 2026 establishes an ambitious framework to foster an innovation-driven entrepreneurial ecosystem, encouraging groundbreaking technologies, expanding district-level incubation, and delivering high-impact financial incentives across the State.

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Official Policy & Mission Documents

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Top State Ranking Goal
Positioning UP among India's top startup ecosystems through performance-driven enablement.
₹400 Cr AKTU Corpus Fund
Expanded fund dedicated to grants, seed assistance, CoE support, and ecosystem promotion.
₹1,000 Cr UP Startup Fund
Fund-of-funds investing through SEBI-registered Daughter Funds to empower state startups.
U-Hub & 20 New CoEs
Premier U Hub ( Deep - Tech ) incubation center along with 20 domain-focused Centers of Excellence.
Financial Grants

Government Incentives for Startups

Monthly Grant
₹20,000 / month
Sustenance Allowance

Provided for up to 2 years till the prototype stage, disbursed on a quarterly basis.

One-Time Grant
Up to ₹10 Lakhs
Prototype Grant

Disbursed in 2 tranches (70% advance, 30% reimbursement) for physical or software application prototypes.

MVP & Commercialization
Up to ₹15 Lakhs
Seed Capital Support

For raw materials, hardware/software tools, trials, and marketing. (Special cases up to ₹50 Lakhs).

Co-Investment
Up to ₹5 Crores
Matching Grant on Funding

50% matching grant for startups raising min ₹2 Crores from recognized national/international funds.

Special Category Bonus
+50% Additional
Inclusive & Regional Bonus

50% extra bonus on Seed & Prototype grants for Women, Divyangjan, Transgender, EWS, or Purvanchal/Bundelkhand startups.

Reimbursement
100% / 75% / 50%
Patent & Quality Certification

100% reimbursement up to ₹50L spend; 75% for ₹50L–₹1Cr slab; 50% for ₹1Cr–₹2Cr slab for patents & certifications.

High Impact R&D

Exclusive Incentives for U Hub ( Deep - Tech ) Startups

Enhanced Grants
2x Standard
Double Grants

U Hub ( Deep - Tech ) startups recommended by CoEs or U-Hub get up to twice the standard Prototype & Seed grants.

Patience Capital
Up to ₹40 Cr
Long-Term Capital

Risk-tolerant support structured via revenue share, IP commercialization, or long-tenure CCPS equity.

R&D Support
40% Matching
Royalty R&D Grant

Non-dilutive grant matching verified R&D cost. Repayable as 3% revenue royalty only after crossing ₹1 Cr revenue.

Infrastructure
Up to ₹2 L / yr
Compute Power Support

50% reimbursement on cloud & data center expenses above ₹50,000 spend per financial year.

Enabler Support

Incentives for Incubators & Centers of Excellence (CoE)

Capital Support
Up to ₹1.50 Crores
Infrastructure Capital Grant

50% capital grant reimbursement up to ₹1.25 Cr (Enhanced up to ₹1.50 Cr in Purvanchal & Bundelkhand regions).

Operational Support
₹40 Lakhs / year
OPEX Grant Support

Annual operational grant for 5 years or until self-sustainability based on Incubator Performance Evaluation (KPIs).

Centers of Excellence
Up to ₹12 Crores
CoE Financial Support

Financial grant-in-aid over 5 years to establish 20 world-class CoEs in emerging domains like Quantum, AI, & SpaceTech.

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