“Startups
are the engine of exponential growth, manifesting the power of innovation.
Several large companies are startups of yesterday. They were born with the
spirit of enterprise and adventure, kept alive due to hard work and
perseverance and today have become shining beacons of innovations.” – Narendra
Modi
No wonder the path of entrepreneurship is
tough and yet Indian startups have been booming incredibly in the developing
economy like ours. Currently, 40,000 startups are on record and to reach the
desired number of 100,000 startups disclosed by President Ram Nath Kovind is
possible only when Start India 2.0 comes into action.
Tables have turned in favour of the
ever-progressing community of India after the budget was released on July 5. As
on many occasions, young firms have showcased their desires towards ease of
doing business, so that the process of starting a business becomes simpler and
raising funds is trouble-free. Rachitta Juneja, CMO, Letstrack, also expressed
her views on the same, said she is expecting the procedure of ease of doing
businesses to be quickly implemented.
However, the budget is out and indicates
the government’s intention to boost ease of doing business for startups. It’s a
sigh of relief for all the entrepreneurs who were expecting startup-friendly
regulations and policies.
As stated by Economic
Times, of the several takeaways for startups, Finance Minister, Nirmala
Sitharaman has made it clear that the startups and investors who file requisite
declarations will not be subjected to any kind of scrutiny in respect of
valuation of share premium. A mechanism of e-verification will be put in place
and with this; the funds raised by startups will not require any tax scrutiny.
Indian startup sector has been through a
really difficult time, whether it was dealing with the Government levied
notices for angel tax or the three major challenges viz. high credit cost,
inadequate and untimely funding, and multiple unfavourable regulations.
However,
the Modi government this time has strategized everything in a way that
regulatory requirements have dwindled and their tax compliance burden has cut
down.
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