UP Stamp Duty Exemption 2022 — Up to 100% Relief for Industrial Units — Frequently Asked Questions

The relief is tiered by region and can go up to the full amount. Units in Bundelkhand and Poorvanchal qualify for 100% exemption, units in Madhyanchal and Paschimanchal qualify for 75%, and units in Gautam Buddh Nagar and Ghaziabad districts qualify for 50%. Because the exemption is a percentage of the duty payable, the actual rupee value differs from project to project.

Bundelkhand and Poorvanchal are the two regions where industrial units can claim a complete exemption on stamp duty. These are the state's less industrially developed belts, and the higher benefit is designed to draw investment there.

No. These two districts are the most developed industrial areas in the state, so the policy places them in the lowest slab at 50%. They are also specifically excluded from the 75% tier that applies to the rest of Madhyanchal and Paschimanchal.

Yes. An industrial unit seeking the exemption has to deposit a bank guarantee for an amount equivalent to the stamp duty being waived. The guarantee is released back to the unit once commercial production commences. Until that happens, the bank guarantee stays with the authorities.

The policy is written for industrial units establishing or expanding in Uttar Pradesh, so expansion projects are within its scope. In practice, the requirement that commercial production commence points to new establishments or significant capacity additions, and the detailed guidelines issued by the Government of Uttar Pradesh would settle how far an existing unit's expansion qualifies.

No. This is a subsidy in the form of a duty waiver, not an equity investment. There is no stake taken in the business and no shares issued in return — the benefit simply reduces the property transaction cost your unit would otherwise bear.

There is no fixed deadline. Applications are treated as rolling and the scheme stays open, so a unit can file once its project and paperwork are ready rather than against a closing date.

Applications route through the Uttar Pradesh government's industrial incentives process, with the state's Nivesh Mitra portal at https://niveshmitra.up.gov.in/ serving as the single-window platform. The precise forms and step-by-step procedure are laid out in the policy's detailed guidelines, so units should check the current checklist there before filing. The practical starting point is to confirm which region your unit falls in — that fixes the percentage you can claim — and to arrange the bank guarantee.

The policy links the release of the bank guarantee to the commencement of commercial production. If production does not begin, the guarantee is not released. The specific consequences and any further conditions would be detailed in the official guidelines issued under the policy.

The waiver is part of a wider push to grow industrial investment and employment across the state under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. By absorbing a chunk of the property transaction cost, it lowers the entry barrier for setting up or expanding a plant, and the region-wise slabs are meant to spread that growth beyond the already developed districts.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP Stamp Duty Exemption 2022 — Up to 100% Relief for Industrial Units, though having it can strengthen your application and unlock other benefits.

UP Stamp Duty Exemption 2022 — Up to 100% Relief for Industrial Units is open to startups at any stage. It is open to startups registered anywhere in India.

UP Stamp Duty Exemption 2022 — Up to 100% Relief for Industrial Units is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.