NASSCOM welcomed the Union Government’s focus on creating a
culture of entrepreneurship in India with the announcement of the ‘Start-Up
India’ action plan. This action plan will not only foster a conducive
ecosystem for start-ups to accelerate their growth but will also provide the
much-needed fillip to ease of doing business and encourage development of
innovative products and solutions in India.
The Government had been interacting with various stakeholders
for inputs and NASSCOM had shared extensive recommendations with various
Departments. NASSCOM is pleased to note that the government has taken
into account most of its recommendations for removing bottlenecks while making
a comprehensive action plan for start-ups.
R. Chandrashekhar, President, NASSCOM said, “Startup India is a
reflection of young India’s aspirations and we congratulate the government for
launching this comprehensive action plan. NASSCOM once again reaffirms its
commitment to support 10,000 technology startups and expand its network of
Start-up Warehouses across the country that will nurture early stage
entrepreneurship. Our ambition is to see India as a startup nation, one that
has exponential growth and also enables creation of unique solutions for
India’s challenges”.
NASSCOM recommendations which have been considered include:
· Definition of start-ups: Registered in India within the last five
years and has annual turnover not exceeding Rs.25 crore in the preceding year.
· Self-certification: Corner-stone of NASSCOM’s suggestion aimed
at simplifying compliance, making it easier for start-ups to focus on
translating their ideas into products and solutions.
· Single Window for approvals and registrations: The startup India hub will serve as a single
point for regulatory clarifications, easy and faster registration and filings.
· Timelines for company registrations to be
reduced – the Government will crash the timelines of registrations to 1 day and
also make available a portal for web/mobile based registrations, including
automating several steps in name search, providing option of tracking status of
registration.
· Fast track Exit - The bankruptcy and
insolvency code introduced in the Parliament, proposes a 90 day exit for
startups with simple debt structure
· 10,000 crore fund: A Fund of Funds (FoF) by way of SEBI registered
venture fund to provide funding support to innovation driven enterprises
· Support for filing patents: Delays in processing patent application,
need for legal guidance and financial support for filing patents,
registering designs etc has been a key ask and the action plan has articulated
a detailed plan to facilitate IPR filing including fast tracking as well as
legal advice.
· Changes in public procurement process: Removal of minimum turnover and experience
criteria will provide a great mileage to the start-ups to work on government
projects
· Tax exemptions:
o Capital gains exemption for reinvestment in
startups: Addressing the long pending demand of venture capital investors, this
capital gains exemption has been extended to VCs and AIFs for investment in
startups. Also, eligible expenses will include expenditure in computer and computer
software as new assets which will help the IT and tech driven startups. NASSCOM
also looks forward to the Union budget, 2016 to address some of the remaining
issues relating to taxation of capital gains in line with the announcements
made on 16th January that capital gains tax rates would be
harmonized across various categories of investors.
o Income tax exemption for startups: Exemption
for three years for start-ups.
o Fair market value: To encourage seed-capital
investment, investment by incubators in startup is exempted from FMV evaluation
and associate taxation.
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