oppn parties Budget 2021 And Startups

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  • FIH Pro League hockey: Indian men beat Argentina 5-4 while women lose to same opponents by 0-5
  • World Cup Stage II archery: Indian women's team enters final. Men's team eliminated
  • Malaysia Masters badminton: P V Sindhu enters second round
  • IPL: RR beat RCB to get another shot in Qualifier 2. RCB out of IPL
  • Referring to sandeshkhali, PM Modi says TMC blaming women to save its goons. TMC asks why Modi was silent for 15 days since the sting videos came out
  • A teenager, who was seen voting eight times for the BJP in a viral video, was arrested after Rahul gandhi and Akhilesh Yadav shared the video on their social media pages
  • The minor son of a builder in Pune, driving a Porsche, runs over two techies on a motorbike. He was arrested but granted bail with conditions by the Juvenile Board
  • PM Modi says action against the corrupt will intensify after June 4 when the NDA returns for the third term
  • Buying of wheat likely to corss 2023 mark but may miss target set for 2024
  • Arvind Kejriwal says BJP has plans to lock AAP offices and freeze the bank accounts of the party
  • Sharad pawar says PM Modi has lost confidence, MVA will win 50% seats in Maharashtra
  • FP|Is offloaded Rs 28200cr in equities in May
  • Former SBI chariman Rajnish Kumar and former Infosys CEO Mohandas Pai will step down from Buju's advisory council
  • Government to tighten norms to ensure better service from telcos
  • Banking sector net profit crosses Rs 3L cr for the first time in FY24
IPL playoffs: RR beat RCB by 4 wickets to end their dream run in the IPL. RR will meet SRH to decide the second finalist. KKR has already reached the final.
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