oppn parties Budget 2021 And Startups

News Snippets

  • Supreme Court sentences Congress leader Navjot Singh Sidhu to one year rigorous imprisonment in the 1988 road rage case
  • Home Minister Amit Shah says rights should not be demanded before fulfilling responsibilities and that universities are no place to wage ideological battles
  • NIA court convicts JKLF chief Yasin Malik in terror funding case after he pleads guilty of all charges
  • A study backed by PM-EAC has recommended universal basic income and urban job guarantee and greater spend on social sector schemes
  • Supreme Court rules that the decisions of the GST Council are not binding on the Centre and the states, leaving the door open for states to levy further taxes
  • After sustained campaign by BJP MP Arjun Singh, the Centre today withdrew the jute price cap order, industry welcomes move
  • Akasa Air might postpone its July launch due to late arrival of aircrafts
  • Metro Cash & Carry decides to sell Indian operations. All major players, including Reliance retail and Amazon, are likely to bid
  • Local and global cues spook the markets on Friday - Sensex crashes 1416 points to 52792 and Nifty by 430 points to 15809
  • IPL: RCB crushes GT by 8 wickets as Virat Kohli returns to form with a well-made half century
  • Nikhat Zareen is world champion in flyweight category. Wins gold at Women's World Championships at Instanbul
  • Supreme Court uses its special powers under Article 124 to release A G Perarivalan, a Rajiv Gandhi assassination convict
  • Indrani Mukherjea, prime accused in the Sheena Bora murder case, gets bail from Supreme Court after 6.5 years in jail
  • Hardik Patel quits Congress, says top leaders distracted by mobile phones and state leadership busy arranging 'chicken sandwiches' for them
  • Anil Baijal resigns as Lieutenant Governor of Delhi citing "personal reasons"
Nikhat Zareen is crowned world champion in the flyweight (52Kg) category at the Women's World Championships in Istanbul /////// Supreme Court sentences Navjot Singh Sidhu to rigorous imprisonment of one year in the road rage case /////// Sunil Jakhar, who quit the Congress a few days ago, joins the BJP
oppn parties
Budget 2021 And Startups

By Ashwini Agarwal
First publised on 2021-02-05 05:55:19

The Finance Minister has introduced several measures that help in doing ease of doing business and address the concerns expressed by startups in India. This is good as the entrepreneurial spirit must be unchained mainly because India is capable of giving birth to lakhs of startups, in technical space and outside it. Many of these startups have the potential to become unicorns if nourished properly and the measures in the Budget will help in that.

The Finance Minister has allowed startups to be constituted as One Person Companies (OPP). She has also allowed NRI (who were present in India for 120 days or more) to form OPPs in India. This is a good move which was being demanded for long by the startup ecosystem. Since startups usually begin with a new solution to a problem or fill in a demand in a novel way, founders are usually wary of sharing the fruits of their labour with outsiders, either as shareholders or on the board. These OPPs will now be able to operate without restriction on paid up capital or turnover and can convert to any other type of company at any time.

In the next measure, compliance has been eased for small companies. These companies were previously marked by having a paid up capital of Rs 50 lakh and a turnover of Rs 5 crore. This has now been revised to Rs 2 crore and Rs 20 crore respectively. This will increase the ease of doing business and remove compliance hassles for a large number of startups. Then, many startups are constituted as Limited Liability Partnerships (LLP). Previously, if these firms were found to come short on compliance, a criminal liability attached to all the partners. The new provisions do away with criminal liability for many such compliance provisions.

Tax holiday for startups has been extended by one year till March 2022. Similarly, capital gain tax exemption for investors in startups has also been extended by one year. Startups have also been exempted from the need to get their accounts audited if gross sales are up to Rs 10 crore and 95% of the transactions are through the digital payment mode. These and a few other measures like the merging of the SEBI Act and the Depository Act will bring relief for startups as angel investors will be less wary due to a transparent regulatory framework. A boom in startups will also create jobs and revive the economy. 

pic courtesy: cloudways.com