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The government has initiated steps for reducing the compliance issues to commence a 'Startup'. Presently, compliance under 22 different laws is required to start a new business. However, government plans to scrap the cumbersome process for the Startups.
A two page 'StartUp Act' is being formulated to simplify the entire process. The steps taken in this direction will help to create job opportunities and unleash entrepreneurial energies. As published in a report by Nasscom, Indian startups will create jobs to the tune of 250,000 by 2020 from 80,000 currently.
The Act aims to simplify the definition of the word 'Startup'. Reportedly, companies with at least 5 years of experience will be qualified to be termed as Startups. Additionally, tax benefits will also be available to them. However, benefits will be available if the companies have innovation as their core agenda.
Reportedly, Department of Industrial Policy and Promotion (DIPP) held discussions with the leaders of the startup community. The meeting was held to discuss the key problems and issues faced by the Startups. The issues addressed to the DIPP may be taken into consideration while framing the 'Startup Act'.
Starting up a new business in India is one hell of a task in India. Whereas, companies can be incorporated within hours in US. Recently, India climbed four places in the spot of 'Ease of Doing Business'. The upgrade in the ranking was mainly on account of the ease of getting electricity and starting of a new business. Currently, it takes 29 days to start a new business from 34 days in the previous report. The procedures to start a business have also gone done relatively.
However, India is still positioned as 130th in rankings, far from Narendra Modi government's target of catapulting the country to among the top 50 by 2017. This surely suggests that we are far off from the mark. However, new 'Startup Act' if deployed productively, will help India immensely to upgrade the ranking in the 'Ease of Doing Business'.
It is high time that steps are taken to simplify the business environment in the country by encouraging new generation of start-up entrepreneurs and innovators with much better access to entrepreneurial education and finance. And this we believe is a major Megatrend opportunity that India cannot lose in its pursuit to become an economic superpower.
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