oppn parties Budget 2021 And Startups

News Snippets

  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
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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