“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.