The Designs (Amendment) Rules, 2021 brought design practice into line with patents and trademarks on the things that matter to smaller filers — a startup category that foreign applicants can actually use, a roughly 50% fee cut for small entities, and formal adoption of the current Locarno Classification.
The amendments to the Designs Rules, 2001 were published in the Official Gazette on 25 January 2021 and took effect from that date.
1. Recognition of startups
The Rules introduce a startup category. Indian startups must be recognised under the Startup India initiative. Foreign entities — previously without a route into the concessional category — can qualify by meeting these criteria:
- be a private limited company, limited liability partnership, or partnership firm;
- have turnover not exceeding ₹100 crore (approximately USD 13.7 million);
- be within 10 years of incorporation; and
- not have been formed by splitting up or reconstructing an existing business.
A foreign entity establishes this by filing an affidavit along with supporting documents.
2. Reduced fees for small entities
Natural persons, small entities and startups now pay identical fees — producing roughly a 50% reduction in the fees payable by small entities.
To claim small-entity status, Indian entities must be registered under the MSME Act, 2006; foreign entities may provide any document as evidence of eligibility.
3. Service by email and mobile
An Indian mobile number must now be provided when recording an address for service, alongside email — reflecting the Office’s move to electronic communication.
4. Fee adjustment on transfer of rights
Where an application is transferred from a natural person, startup or small entity to another entity that does not qualify for the concession, the difference in the applicable fees must be paid. The exception: no top-up is required where startup or small-entity status lapses naturally — by exceeding the turnover threshold or the ten-year window — rather than by a transfer.
5. Adoption of the current Locarno Classification
India formally adopted the current edition of the Locarno Classification published by WIPO, removing the discrepancies that arose from the Office working to an older, locally modified list. Applicants can now classify to the same standard used internationally.
6. Costs in Controller proceedings
The Fourth Schedule was modified to provide differentiated costs depending on the entities involved in proceedings before the Controller.
Why it matters
The changes are procedural, but they lower the cost of design protection meaningfully for exactly the filers most likely to skip it — individual designers, small manufacturers and early-stage companies. The foreign startup route is the more consequential change: it lets overseas early-stage companies claim the same concessional fees as Indian ones, on an affidavit.
One practical note from the time: the reduced fees were not immediately reflected on the Designs Office e-filing portal when the Rules were notified, so filers had to watch the portal rather than assume the new figures were live.
The takeaways
- Startups get a dedicated fee category — and foreign startups can qualify on an affidavit.
- Small entities pay roughly 50% less — now aligned with natural persons and startups.
- Locarno Classification adopted as published by WIPO — no more local discrepancies.
- Transfers out of the concessional category trigger a fee top-up — unless status lapses naturally.
Frequently asked questions
Can a foreign company claim startup status for design filings in India? Yes — if it is a private limited company, LLP or partnership firm, within ten years of incorporation, with turnover not exceeding ₹100 crore, and not formed by splitting or reconstructing an existing business. It files an affidavit with supporting documents.
How much did fees fall for small entities? Small entities now pay the same as natural persons and startups — approximately a 50% reduction.
What proof of small-entity status is required? Indian entities must be registered under the MSME Act, 2006; foreign entities may submit any document evidencing eligibility.
Do I pay more if I transfer my design application to a larger company? Yes — the difference in fees becomes payable, unless the startup or small-entity status lapsed naturally rather than through a transfer.