Modi government seems to be pulling all stops to ensure that the burgeoning startup industry in the country remains on its path to success and doesn't gets sidetracked due to burden of unnecessary rules and regulations. In its latest dose of encouragement for the Indian startup industry, the government is considering further reduction in taxation for startups and a three months exit procedure for those ventures who have failed to take off.
Taking the podium at the India international MSME and Startup Expo 2017, Dr Jitendra Singh, Minister of Development for North-eastern state and Minister of State for Prime Minister Office Personnel revealed that the Indian central government is contemplating a new tax holiday, a temporary reduction or elimination of tax for new ventures with a three months exit window.
Currently, Inter-Ministerial Board (IMB) certified startups in the country are allowed a three-year tax exemption within the first seven years of their existence. The Union Budget for 2017-18 had allowed eligible startups to make use of their three-year tax holiday in a period of seven years instead of five years.
Closing a company in India is a task in itself. As of today, it takes an entrepreneur up to three years to close the final curtains on their venture as they require a court approval. The Modi government is now planning to cut down this waiting period to a maximum of three months.
The expo also saw Singh drawing the attention of state politicians towards helping startups with sustainability and urged the state departments to add value to the startup events. He said, “We waste resources by giving mementoes to each other and said many of them are given to the drivers or left in the car and are eventually wasted.”
He further added, if ministers used the resources for startup and SME events and motivate the youth of India to become entrepreneurial, we can preserve our environment.
Singh also took the opportunity to advise Indian startups to push the envelope and think out of the box and not follow the herd mentality, a trend being witnessed in startup industries all around the world.
Taking the podium at the India international MSME and Startup Expo 2017, Dr Jitendra Singh, Minister of Development for North-eastern state and Minister of State for Prime Minister Office Personnel revealed that the Indian central government is contemplating a new tax holiday, a temporary reduction or elimination of tax for new ventures with a three months exit window.
Currently, Inter-Ministerial Board (IMB) certified startups in the country are allowed a three-year tax exemption within the first seven years of their existence. The Union Budget for 2017-18 had allowed eligible startups to make use of their three-year tax holiday in a period of seven years instead of five years.
Closing a company in India is a task in itself. As of today, it takes an entrepreneur up to three years to close the final curtains on their venture as they require a court approval. The Modi government is now planning to cut down this waiting period to a maximum of three months.
The expo also saw Singh drawing the attention of state politicians towards helping startups with sustainability and urged the state departments to add value to the startup events. He said, “We waste resources by giving mementoes to each other and said many of them are given to the drivers or left in the car and are eventually wasted.”
He further added, if ministers used the resources for startup and SME events and motivate the youth of India to become entrepreneurial, we can preserve our environment.
Singh also took the opportunity to advise Indian startups to push the envelope and think out of the box and not follow the herd mentality, a trend being witnessed in startup industries all around the world.
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