As many as 6,385 recognised startups have been categorised as “closed” as on October 31, according to the data from the Union Ministry of Corporate Affairs, Parliament was informed on Tuesday.
Recognized startups are eligible for a number of incentives, like income tax benefits under the Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT). As of October 31 this year, a total of 1,97,692 entities have been recognised as startups.
"As on October 31, 2025, 6,385 recognised startups are categorised as closed (i.e. dissolved/struck-off), as per the Ministry of Corporate Affairs (basis data shared on November 11, 2025)," Union Minister of State for Commerce and Industry Jitin Prasada said in a written reply to the Lok Sabha.
The maximum number of closed startups is in Maharashtra (1,200), followed by Karnataka (845), Delhi (737), Uttar Pradesh (598), Telangana (368) and Tamil Nadu (338). He said that the government has not observed any increase in startup closures.
"Closures that do occur are generally influenced by factors like the viability of the business model, alignment with market demands, domestic and global economic conditions, the nature of products and services developed, the ability to attract funding and other business-specific considerations," he said.
Under the Startup India initiative, the government is implementing three flagship schemes, Fund of Funds for Startups, Startup India Seed Fund Scheme and Credit Guarantee Scheme for Startups, to provide funding opportunities and support to startups across sectors at various stages of their business cycle.
Under Section 80-IAC of the Income Tax Act 1961, an eligible startup can claim a deduction of an amount equal to 100 per cent of the profits and gains derived from an eligible business for three consecutive assessment years. As of October 31, 4,147 recognised startups have received certificates of eligibility under this section.
In a separate reply, Union Commerce and Industry Minister Piyush Goyal said that as of October 31, the recognized startups have reported creating over 21.11 lakh direct jobs.
Also read: DPIIT to boost innovation in startup manufacturing
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