MSME Innovative Scheme & State Patent Reimbursement (2026)

msme innovative scheme

You have filed a patent and paid both your agent and the Patent Office. Then someone mentions that the government might pay part of it back. The search starts there. One scheme sits on a Ministry portal. Another lives on a state startup website. A third quietly ran out of time.

This guide puts them in one place. It covers the IPR part of the MSME Innovative Scheme and the lower Patent Office fees for startups and small entities. It also covers the patent support in each state from our state-wise patent filings data. Every figure comes from an official source and is correct as of 10/11/2026.

At Legismith LLP, founders and small manufacturers ask us the same two things: which scheme fits, and when does the money arrive? The answer depends on how you are registered, which state you are in and how far your application has gone.

Which government schemes pay back patent filing costs in India?

Three central routes help with patent costs. Startups, small entities and individuals pay lower official fees. Manufacturing MSMEs can claim money back under the MSME Innovative Scheme. SIPP, the facilitator scheme for startups, has closed. Many states add their own support, from ₹75,000 for students in Gujarat to ₹20 lakh in Maharashtra.

Central route

What you get

Who can use it

Source

Lower official fees (Patents Rules, First Schedule)

You pay less when you file. For example, Form 1 costs ₹1,600 instead of ₹8,000 online.

Natural persons, startups, small entities, educational institutions

IP India fee schedule

MSME Innovative Scheme – IPR

Money back after registration, up to fixed limits

Manufacturing MSMEs with Udyam registration

Ministry of MSME booklet 2025-26

SIPP (Startups Intellectual Property Protection)

The government paid the facilitator’s professional fee

Closed: the last term ran three years from 01/04/2023; no extension notified as of 12/11/2026

IP India SIPP page

KAPILA

Patent support for students and educational institutions

Schools and institutions

See our KAPILA scheme guide

These routes work very differently. A fee concession saves money on the day you file. A reimbursement pays you back months or years later, and only if you claim it correctly. Mixing the two up is behind the “50% patent subsidy” claim that still circulates on forums.

What does the MSME Innovative Scheme reimburse?

The IPR part of the MSME Innovative Scheme pays back registration costs up to fixed limits: ₹5 lakh for a foreign patent, ₹1 lakh for an Indian patent, ₹2 lakh for a GI, ₹15,000 for a design and ₹10,000 for a trademark. The Ministry’s 2025-26 booklet limits this support to manufacturing MSMEs with Udyam registration.

IP right

Maximum reimbursement (as of 10/11/2026)

Foreign patent

₹5,00,000

Indian patent

₹1,00,000

Geographical Indication (GI)

₹2,00,000

Design registration

₹15,000

Trademark

₹10,000

Source: Ministry of MSME, “Schemes for MSMEs 2025-26”, pages 42–43.

The Ministry describes the scheme as one that “will be an amalgamation of the Incubation, Design and IPR Schemes” (MSME RAMP). That explains a common mix-up. When you search for the scheme, the first figure you see is often ₹15 lakh. That money goes to host institutes to develop ideas. It does not pay your patent bill.

Two points are easy to miss. First, the booklet names manufacturing MSMEs for the IPR part, so a service business should not plan around it. Second, the support is for registration, which means you claim after the patent is granted or the right is registered. Applications run through the MSME Innovative portal.

Is SIPP still available for startups in 2026?

No. SIPP’s last notified term ran for three years from 01/04/2023, and IP India listed no extension when we checked on 12/11/2026. Startups filing now pay their patent agent themselves. The lower official fees for startups are a separate rule and still apply, so that saving remains.

As an empanelled SIPP facilitator, we can confirm the scheme is no longer taking new filings. Those lower fees are now where most startups save money first. Here are the online (e-filing) government fees. Professional fees for drafting and filing are separate and are not shown.

Form (e-filing)

Startup, small entity or individual

Others

Form 1 – patent application

₹1,600

₹8,000

Form 18 – request for examination

₹4,000

₹20,000

Form 18A – expedited examination

₹8,000

₹60,000

TM-A – trademark application (per class)

₹4,500

₹9,000

Government fees only, as of 10/11/2026. Sources: IP India patent fee schedule; IP India trademark fees.

Startups can also ask for expedited examination under Rule 24C. Our guide to startup IP benefits explains each one in detail. The patent fee calculator shows the full fee picture for your case.

Not sure which of these applies to your filing? Schedule a call with our team.

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Which states reimburse patent costs?

Most states with a startup or MSME policy offer some patent support, but the rules vary widely. Maharashtra pays up to ₹20 lakh for international filings, while Arunachal Pradesh offers ₹10,000 per Indian patent. A few schemes cover trademarks, most do not, and several older policies may no longer be open.

The table uses the same order as our state-wise patent filings article: the states that file the most patents come first.

StateSchemeIndian patentForeign patentTrademark / designStatus (10/11/2026)
Tamil NaduMSME Department subsidy for IP75% of filing cost, up to ₹3 lakhSame limitTM / GI: 50%, up to ₹25,000 (manufacturing MSMEs)Current
MaharashtraMSInS IPR Support Scheme (Policy 2025)Up to ₹5 lakh per applicantUp to ₹20 lakh per applicantDesigns and software copyright; no trademarksCurrent
KarnatakaStartup Policy 2025-30Patent filing cost support (amount in policy annexure)——Approved 14/11/2025; confirm with KITS
Uttar PradeshStartup Policy 2026100% of spend up to ₹50 lakh (patents and quality certification), lower rates aboveNot splitNot statedCurrent
TelanganaInnovation Policy (2017, amended 2021)₹2 lakh per patent granted₹10 lakhTrademarks and design patents added in 2021Confirm with TSIC
DelhiDelhi Startup Policy (2022)Up to ₹1 lakhUp to ₹3 lakhCovers trademarks, copyright and designsConfirm it is operational
Andhra PradeshInnovation & Startup Policy 4.0 (2025)50%, up to ₹2 lakh50%, up to ₹10 lakhNot coveredCurrent (filing fees only)
GujaratSSIP 2.0 (students and institutions)₹75,000₹1.5 lakhTM ₹12,500; design ₹9,000Current until 31/03/2027
HaryanaPatent Cost Reimbursement Scheme (2024)100%, up to ₹3 lakh100%, up to ₹10 lakh (₹25 lakh total)Not coveredCurrent
RajasthanInvestment Promotion Scheme 202475%, up to ₹5 lakh (startups)Not splitTM / GI matched to central supportConfirm
UttarakhandStartup Policy 2023100%, up to ₹1 lakh100%, up to ₹5 lakhTM and design ₹10,000 eachCurrent
KeralaKSUM Patent Support SchemeUp to ₹2 lakhUp to ₹10 lakhPatents onlyCurrent
Madhya PradeshStartup Policy 2022Up to ₹5 lakh—Not statedConfirm
OdishaStartup Policy 2016 / MSME Policy 2022100%, up to ₹10 lakh—TM up to ₹3 lakh (MSME policy)Confirm
ChhattisgarhStartup Package 2024-3050%, up to ₹10 lakh—Not statedCurrent
BiharStartup Policy 2022Domestic filing costsFiling fees if grantedReported to cover TM and designsConfirm limits
GoaGoa Startup Policy 2025100%, up to ₹2 lakh100%, up to ₹5 lakhTM 50%, up to ₹25,000Current
TripuraStart-Up Policy 2024₹2 lakh per patent granted₹10 lakhNot coveredCurrent
NagalandStartup Policy 2019Up to ₹2 lakhUp to ₹5 lakhNot coveredConfirm
ManipurStartup Scheme 2.0 (2022)Up to ₹2 lakhUp to ₹5 lakhNot coveredConfirm
Arunachal PradeshStartup Policy 2022₹10,000 per patent granted₹1 lakhNot coveredConfirm


“Confirm” means the official text exists but its period has passed, or the page shows no date. Check with the state’s startup cell before you rely on it.

We could not confirm a current patent scheme for Punjab, West Bengal, Jharkhand or Assam. The same goes for Meghalaya, Mizoram, Sikkim, the Andaman and Nicobar Islands, Ladakh and Lakshadweep. Punjab and Assam have new policies, but their patent terms were not available in official text when we checked. Applicants there can still use the central routes above. If you are in Maharashtra, our MSInS IPR scheme guide covers that scheme in full.

When is the money paid: at filing or after grant?

Mostly after grant. The MSME scheme, Maharashtra, Goa, Haryana and Tamil Nadu pay once the patent is granted or the right is registered. A few states split the payment: Telangana and Tripura pay half at filing, and Uttarakhand pays 75% at filing. In every case, you pay your agent first and claim later.

Scheme

When you can claim

MSME Innovative Scheme – IPR

After registration or grant

Maharashtra (MSInS)

Startups: after grant or registration

Haryana

After grant; claim within 6 months

Tamil Nadu (MSME)

After registration; claim within 6 months

Goa

After registration

Kerala (KSUM)

In three stages: filing, prosecution and grant

Telangana, Tripura

50% at filing, 50% at grant

Uttarakhand

75% at filing, 25% during prosecution

Kerala’s scheme puts it plainly: “No advance Payment is considered.” A patent can take years to be granted. So treat any reimbursement as a later refund, not as money for your launch. Deadlines matter too. In Haryana and Tamil Nadu, a claim filed more than six months after grant may be refused.

Can you claim central and state support together?

Yes, in many cases, but never for the same rupee twice. Maharashtra’s scheme, for example, only looks at the part of an expense that another source has not already paid. Take the fee concession first, then claim each scheme for the costs it actually covers, and keep one set of invoices that shows who paid what.

A manufacturing startup in Pune might work through it like this:

  1. File at the startup or small-entity rate, which lowers the official fees from day one.
  2. After grant, claim under the MSME Innovative Scheme, since it is a manufacturing MSME.
  3. Claim the remaining eligible cost under the state scheme, declaring the central amount already received.

Some states are stricter. Chhattisgarh, for instance, does not allow a startup to claim where it has already taken a similar central benefit.

The scheme rules show three ways a claim can fail. The first is eligibility: a service business cannot use the MSME scheme, and Maharashtra caps startup turnover. The second is timing, when a claim comes before grant or after a six-month window closes. The third is paperwork, such as copies instead of original invoices, or no declaration that the cost was not claimed elsewhere.

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Who is eligible: startups, MSMEs, students or individual inventors?

It depends on how you are registered. Manufacturing MSMEs with Udyam registration can use the MSME scheme. DPIIT-recognised startups get the lower fees and qualify for most state startup schemes. Students have a few routes of their own, such as Gujarat’s SSIP. Individual inventors mostly get the lower fee scale only.

You are

Where to look

A manufacturing MSME (Udyam)

MSME Innovative Scheme – IPR; Tamil Nadu MSME subsidy; lower official fees as a small entity

A DPIIT-recognised startup

Lower official fees; your state’s startup scheme (see the table above)

A student or institution

Gujarat SSIP 2.0; Maharashtra MSInS for ITI and skill-university students; Kerala through IEDCs; KAPILA

An individual inventor

The natural-person fee scale; a few state schemes, so check your state’s rules

Most state schemes also require you to be registered in that state. Maharashtra, for instance, asks for DPIIT recognition, registration in the state and a turnover limit.

What documents do you need to claim?

Every scheme asks for three kinds of proof: who you are, what you paid, and that the right exists. Keep original invoices and receipts from the start, because they are hard to replace years later when the patent is finally granted.

Most schemes ask for:

  • Proof of status, such as your Udyam certificate, DPIIT recognition or state registration.
  • Filing receipts, and the grant or registration certificate.
  • Original invoices and proof of payment from your patent agent or attorney.
  • Bank details for the transfer.
  • A self-declaration that the same cost has not been claimed elsewhere.
  • Consent or ownership documents if the right is jointly owned.

A patentability search before you file also helps. Schemes pay back filing costs, not the cost of an invention that turns out to be unpatentable.

Frequently Asked Questions

Is there a 50% patent subsidy for MSMEs?

Not as a general rule. The central MSME Innovative Scheme pays back up to ₹1 lakh for an Indian patent and ₹5 lakh for a foreign one. It is open to manufacturing MSMEs. Separately, startups and small entities pay lower official fees. Some states pay 50% or 75% of costs, so check your own state’s rules.

Do these schemes cover trademarks?

Some do. The MSME Innovative Scheme pays up to ₹10,000 per trademark. Tamil Nadu, Telangana, Uttarakhand, Goa and Delhi’s 2022 policy also include trademarks. Maharashtra’s revised MSInS scheme does not. Startups and small enterprises also pay ₹4,500 instead of ₹9,000 per class when they file online.

Does the MSME scheme cover foreign patents?

Yes. The IPR part of the MSME Innovative Scheme allows up to ₹5 lakh for a foreign patent. That is five times the ₹1 lakh limit for an Indian patent. As of 10/11/2026, the Ministry’s 2025-26 booklet limits this support to manufacturing MSMEs with Udyam registration.

Can a student get support for a patent?

Yes, in some states. Gujarat’s SSIP 2.0 supports students and institutions with up to ₹75,000 for an Indian patent. Maharashtra’s MSInS covers current and recent ITI and skill-university students, and Kerala supports students through IEDCs. Schools can look at the KAPILA scheme.

Do I pay first and claim later?

Yes, almost always. Kerala’s scheme states that no advance payment is made, and most others pay against invoices after filing or grant. Plan to fund the full cost yourself, then claim the eligible part with original bills and proof of payment.

What happens if my patent is not granted?

Schemes that pay only after grant, such as Haryana’s and Maharashtra’s scheme for startups, will not pay if the patent is refused. Schemes that pay in stages, like Telangana’s and Uttarakhand’s, may already have paid the filing-stage share. Read your state’s rules before you file.

Preparing Your Filing for a Reimbursement Claim

Government support for patents in India is real, but it rewards people who plan early. Three habits make the difference. Check which schemes you qualify for before you file. Keep every invoice and receipt in one folder. And note each claim deadline, such as six months from grant in Haryana and Tamil Nadu.

If you are weighing a filing, you can schedule a call with our team at Legismith LLP to see which schemes may apply. Startups can read about our startup IP services, and other applicants can see our patent services.

The content provided in this article is for general informational purposes only and does not constitute legal advice. Please consult with a qualified IP attorney for your specific needs.

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