Bihar Startup Policy

Bihar Startup Policy supports local entrepreneurs by providing seed funding and other support to help new businesses grow in the state. The scheme, run by the Department of Industries, has so far registered 1,522 startups and disbursed ₹69.50 crore in funding.

In January 2026, Industries Minister Dilip Kumar Jaiswal announced at the Avinya Bihar 2.0 event that the interest-free seed fund would be raised from ₹10 lakh to ₹25 lakh per startup. The official notification for the higher amount is still awaited, so the existing ₹10 lakh seed fund continues to apply for now.

Bihar Startup Policy - Introduction

Bihar Startup Policy was launched in July 2022 to encourage entrepreneurship across the state. It focuses on growing the MSME sector and helping founders move from a fresh idea to a working business.

The scheme is open for new applications. The application window on the official portal is open till 31 July 2026, 11:59 PM. After that, the next cycle will be announced on the portal.

Key Information

Benefits

This scheme offers several incentives to help a business grow. For example, if Rahul starts a tech venture in Patna, he can benefit from the following:

• Interest-free seed funding of up to ₹10 Lakh given as a loan for ten years, with the first two years as a no-EMI moratorium period. The amount is released in two tranches of ₹4 Lakh and ₹6 Lakh.
• Higher seed fund announced of up to ₹25 Lakh per startup, proposed by the Industries Department in January 2026. This is waiting for the official notification.
• Extra support for women with an additional 5% boost, taking the total to about ₹10.5 Lakh for women-led startups.
• Extra support for SC/ST founders with an additional 15%, taking the total to about ₹11.5 Lakh, plus an accelerator grant.
• Product improvement grants of ₹3 Lakh for businesses joining training for finance and product development.
• Infrastructure support including shared office space and other amenities to lower starting costs.

Eligibility

To qualify for support under this scheme, a business should meet these standards:

• The entity must be incorporated as a private limited company, a registered partnership firm, or a limited liability partnership within the last ten years.
• The annual turnover must not have crossed ₹100 Crore in any financial year since registration.
• The business model should focus on innovation, product development, or process improvement, with good potential for employment or wealth creation.
• Businesses formed by splitting or reconstructing existing firms do not qualify.
• The startup must be registered in Bihar with an active office in the state, and all applicable taxes must be paid within Bihar.

Application Process

Follow these steps to apply online:

STEP 1 - Visit the official Startup Bihar portal and click on the register option.

STEP 2 - Enter basic details like name, mobile number and email, then verify the OTP and set a password.

STEP 3 - Login and complete the profile with personal, company and bank details, and add co-founder details if any.

STEP 4 - Upload a detailed project report, a pitch deck in PPT format, and give a clear breakdown of how the fund will be used.

STEP 5 - Upload scanned copies of all required documents in PDF or JPG format, keeping them clear and readable.

STEP 6 - Review the full form, submit it, and note down the application ID for future reference.

After submission, the State Startup Monitoring Committee reviews the application. Shortlisted founders give a presentation before an expert panel in Patna. Once approved, the fund is released within about 30 days, and the full process takes around 3 to 4 months.

Documents

Keep the following documents ready while applying:

• A valid email ID active for at least 1 year and a mobile number linked with Aadhaar.
• A recent passport size photo and scanned copies of Aadhaar card, PAN card and educational certificates.
• A caste certificate only if applicable, as SC/ST and OBC founders get extra benefits.
• Proof of entity registration, GST registration if applicable, a detailed project report and the latest balance sheet.
• Any other documents in the formats required by the portal.

References

View Official Guidelines | Apply Online Registration

FAQ's

What is Bihar Startup Policy?

It is a scheme launched in July 2022 to support entrepreneurs and boost the startup ecosystem in Bihar with seed funding and other support.

Who can get the scheme benefits?

Business entities that are registered and operate within Bihar are eligible. The business should be innovative and registered as a private limited company, LLP or partnership firm.

What are the financial benefits?

Eligible startups get interest-free seed money of ₹10 Lakh as a loan for ten years with a two year moratorium, plus grants of ₹3 Lakh for training and extra incentives for women and SC/ST founders.

Has the seed fund been increased?

Yes, the Industries Department announced in January 2026 a plan to raise the seed fund from ₹10 Lakh to ₹25 Lakh. The official notification is still awaited.

How do I apply?

Apply online by visiting the official application portal, registering, and completing the questionnaire and document upload.

Can entrepreneurs from other states apply?

No, the startup must be incorporated in Bihar and taxes must be paid within the state to be considered under this policy.