Uttar Pradesh Startup Policy 2026 — ₹20,000 Monthly Allowance, ₹10 Lakh Prototype Grant, ₹15 Lakh Seed Capital and a ₹1,000 Crore Fund of Funds
A rewritten policy with doubled numbers
Uttar Pradesh's first startup policy ran from 2020. On 6 July 2026 the state cabinet approved the Uttar Pradesh Startup Policy 2026 to replace it, roughly doubling the prototype and seed support, extending the sustenance allowance to two years, and creating a Directorate to coordinate incubators, districts and departments. The state had already moved into DPIIT's Top Performer tier in State Ranking 5.0; the new policy is meant to keep it there.
Everything runs through the Integrated StartInUP Portal — registration, incentive claims, mentor and investor matching, and incubator onboarding. The financial architecture has two layers: a ₹400 crore corpus fund for direct grants and seed assistance, and a ₹1,000 crore UP Startup Fund structured as a fund of funds investing through SEBI-registered daughter funds.
The support stack under the 2026 policy
| Benefit | Amount | Notes |
|---|---|---|
| Sustenance allowance | ₹20,000 per month, up to 24 months | For founders of registered, incubated startups at the early stage |
| Prototype grant | Up to ₹10 lakh | To build and test a prototype, milestone-linked |
| Seed capital | Up to ₹15 lakh; up to ₹50 lakh for projects of strategic importance | For market entry and early scaling |
| Fund of funds | ₹1,000 crore UP Startup Fund via daughter funds | Equity through SEBI-registered AIFs |
| Corpus fund | ₹400 crore | Source for grants and seed assistance |
| Other incentives | Patent reimbursement, marketing assistance, incubator support, women and SC/ST top-ups | As notified in the policy guidelines |
Department and Directorate
The Department of IT and Electronics owns the policy; the new Directorate coordinates implementation; evaluation committees at recognised incubators and at the state level assess claims. Fund-of-funds investments are decided by the daughter funds' own committees.
Registered in UP, on StartinUP
- •Startup registered in Uttar Pradesh and on the StartinUP portal; DPIIT recognition expected
- •Within the age and turnover limits the policy sets for a startup (aligned to the DPIIT definition)
- •For sustenance and prototype support: attached to a state-recognised incubator
- •For strategic-importance seed capital of ₹50 lakh: the project must fall in a sector the state designates as strategic
- •Not already claiming the same benefit under the 2020 policy for the same milestone
What the StartinUP claim needs
- •StartinUP registration; Certificate of Incorporation; DPIIT recognition; proof of UP registered office
- •Incubation letter from a state-recognised incubator
- •Founder KYC (Aadhaar, PAN); for the sustenance allowance, a declaration of full-time engagement
- •Prototype or seed proposal with milestones, budget and timeline
- •Financial statements or bank statements; turnover declaration
- •Bank account details of the entity
- •For strategic-importance projects: a note on sector fit and the technology's significance
- •Declaration of other central or state support received
Questions founders ask about the UP policy
Existing sanctions run on their original terms. New claims fall under the 2026 policy, and the guidelines address transition cases; we check which regime applies before filing.
It is a sustenance allowance for the founder of an incubated startup, paid through the mechanism the guidelines set — typically to the founder against the incubator's confirmation.
Indirectly, like the central Fund of Funds: the state invests in daughter funds, and those funds invest in UP startups on commercial terms.
Yes, if the entity is registered in Uttar Pradesh and on StartinUP. The founder's residence is not the test; the company's registration is.