The Narendra Modi government seems to be hell-bent on transforming India into a startup haven. In what could be seen as another step towards it Startup India, Stand Up India initiative, the government is currently seriously contemplating distilling its cumbersome process of compliances under 22 different laws into a two-page Startup Act.
By cutting down on those truck loads of regulations, the government is affirmative that it will be able to provide a powerful launchpad to startups.
Announced on 15th August, 2015, the Narendra Modi government wishes to take the fourth largest startup community in the world to the numero uno position with its Startup India, Stand Up India initiative.
[cp_quote style="quote_normal_dark"]The government's Department of Industrial Policy and Promotion (DIPP) is currently at work drafting a clear definition for startups in order to ensure that the regime is available only to businesses with innovation at heart. This is a necessary step in the light that the government is also considering extending tax incentives for startups, which it doesn't want non-deserving companies to avail.[/cp_quote]
The DIPP also held discussions with some of leading names of the Indian Startup industry last week and drew up a list of points that require immediate action.
Businesses wanting to get the 'Startup' tag will most likely expected to be operational for less than five years and be providing an innovative product or service, different from the rest. They will also be required to conform to financial norms in order to make sure that the incentives are not spread too thin.
The new policy in the making is expected to resolve all the delays and kinks in the process like cumbersome Foreign Exchange Management Act (Fema) documentation, incorporation, lack of initial funding, access to external commercial borrowings and employee stock options.
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