Recently, the Indian government has been facing a lot of flak over the sorry state of affairs ruining the startup ecosystem in India.
To rejuvenate the sector and provide a new moment, the central government has decided to confer various incentives to the start-up fraternity – this is intended to be an exercise to enthuse the budding entrepreneurs and strengthen the economic/development prospects of the startup ecosystem from a larger perspective.
Following is the gist of the newly proposed set of incentives for start-up fraternity:
In order to give official recognition/validity to the aforesaid proposed incentives, the central government would have to tweak certain provisions of the Companies Act, 2013.
The beauty of these proposed incentives is that they will ease the compliance pressure on the startups and will provide them with the window to focus on the business expansion and overall organizational development.
Another advantage of these proposed incentives is that startups will have much needed flexibility in terms of finance and business operations due to ease of compliance burden on the startup fraternity and incentives conferred by the central government on the start-up fraternity.
One may expect the central government to soon roll out a notification making these proposed incentives officially effective. Implementation of these proposed incentives will provide the start-up fraternity with much needed breather space in terms of regulatory filings and financial flexibility and will certainly uplift the development prospects of startup a system to the level.