UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L
A Government of Uttar Pradesh subsidy that reimburses 20% of equity-raise costs via stock exchanges, capped at ₹5 lakh, for Uttar Pradesh-registered MSMEs.
- Funding amount
- ₹5L (subsidy)
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The UP MSME Equity Reimbursement is a state-backed subsidy offered by the Government of Uttar Pradesh. It operates under the Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy 2022 and is designed to reduce the cost for state-registered MSMEs that raise capital from public markets.
Taking a company to a stock exchange brings underwriting, legal, accounting and compliance bills. This scheme pays back a share of that spend: 20% of the total expenditure, subject to a maximum of ₹5 lakh. Because it is a reimbursement rather than an investment, the business does not have to give up equity.
By covering part of the listing and equity fund-raising cost, the programme aims to make capital-market access realistic for smaller enterprises. The wider objective is to help MSMEs in Uttar Pradesh reach a broader investor pool, support their expansion and contribute to the state's economic development.
Highlights
- Reimburses 20% of equity fund-raising costs, capped at ₹5 lakh.
- Open to MSMEs registered in Uttar Pradesh.
- Covers equity raised through recognised stock exchanges.
- Rolling deadline, so there is no fixed closing date.
- Cash reimbursement that does not take any equity stake.
- Claims submitted via the Nivesh Mitra portal.
Who can apply
To qualify for this reimbursement, your enterprise should be a micro, small or medium enterprise (MSME) registered within Uttar Pradesh. The scheme is aimed at businesses that are carrying out an equity raise on a recognised stock exchange.
The claim is tied to the expenditure you incur during that equity fund-raising process. It is not a general grant for any MSME expense; it is a reimbursement for costs generated by a public-market equity raise.
The available details do not list separate industry, founder or entity-type filters, and they do not mention a DPIIT recognition requirement. The core eligibility points are MSME status in Uttar Pradesh and an equity fund-raising exercise on a recognised stock exchange.
UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The scheme pays back a portion of what your MSME spends on raising equity through a stock exchange. The reimbursement rate is 20% of total eligible expenditure, and the maximum payout is ₹5 lakh.
The money is intended to offset common public-issue costs. These can include underwriting fees, legal charges, accounting charges and regulatory compliance costs linked to the fund-raising. By softening those outlays, the subsidy makes exchange-based capital raising more practical for MSMEs.
This is a cash reimbursement rather than a loan or an equity investment. You first incur the expenditure, then claim the eligible share under the policy.
About the provider
UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L is offered by Government of Uttar Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
The claim journey begins with an application to the authority designated for the Uttar Pradesh MSME Promotion Policy 2022. You submit the reimbursement claim using the required format and the policy's deadlines.
Your submission needs to document the equity fund-raising expenditure. That typically means bills, receipts, evidence of payment, and written confirmation from the exchange about the fund-raising.
After the initial application is received, the nodal agency reviews the documents and verifies whether the claim meets the eligibility criteria. The reimbursement is then processed on the basis of that review.
Documents you’ll need
Before you apply to UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L is best suited for startups in India seeking non-dilutive funding of ₹5L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is the UP MSME Equity Reimbursement scheme?
It is a subsidy under the Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy 2022, provided by the Government of Uttar Pradesh. The scheme reimburses part of the expenditure that eligible MSMEs incur when raising equity funds through recognised stock exchanges.
How much money can I get back?
The maximum reimbursement is ₹5 lakh. Within that cap, the scheme covers 20% of your total eligible expenditure on the equity fund-raising process, so the actual amount depends on how much you spent.
What percentage of my costs is reimbursed?
You can claim 20 percent of the expenditure incurred on raising equity funds through the stock exchange. The payout cannot exceed ₹5 lakh.
Which businesses are eligible for this scheme?
Micro, Small and Medium Enterprises (MSMEs) that are registered in Uttar Pradesh and are raising equity funds through recognised stock exchanges. The reimbursement applies to expenditure incurred during that fund-raising activity.
Can an MSME outside Uttar Pradesh apply?
No. This programme is part of the Uttar Pradesh MSME Promotion Policy 2022 and is specifically for MSMEs registered and working inside Uttar Pradesh.
What expenses does the reimbursement cover?
The claim can include costs tied to the exchange-based equity raise. Examples are fees paid to lawyers and consultants, underwriting commissions, and similar public-issue expenses.
Does the scheme take equity in my company?
No. This is a reimbursement programme, so it provides financial assistance for costs you have already incurred. It does not ask for a stake in your company.
Is there a deadline to apply?
The scheme is listed as rolling or always open, so there is no fixed closing date in the details provided. Claims still need to follow the required format and the policy deadlines.
How do I apply for the reimbursement?
Claims go to the authority designated for the Uttar Pradesh MSME Promotion Policy 2022. Applications are made through the Nivesh Mitra portal at https://niveshmitra.up.gov.in/. The process usually starts with an application submission, followed by a document review and eligibility verification by the nodal agency.
What documents are typically needed?
The claim application usually requires detailed documentation of the expenditure incurred during the equity fund-raising. This can include bills, receipts, payment proof and written confirmation from the exchange about the fund-raising. Adhere to the format prescribed in the policy guidelines.
Is DPIIT recognition required for UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L?
UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L?
UP MSME Equity Reimbursement: 20% Subsidy Up to ₹5L is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
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