Union Budget 2016: Startup Registration Process to Get Easier, One Day Registrations to Become Reality
A Bill To Make This Possible Will be Presented Soon in Parliament
When PM Modi launched his “Start Up India, Stand Up India” campaign in January, it became clear that ‘Acche din’ of Indian startups weren’t far away. Now today when Union Budget has been presnted, government’s plan for startups is looking even more promising. A range of reforms have been announced that’ll make it easier to start a business in India. If you want to start up, there can’t be a better time for it.
Probably the biggest reform announced today to encourage country’s startup ecosystem is a bill that’ll make startup registration process much easier and faster. Finance Minister Mr. Arun Jaitely said that government will bring a bill in parliament to make startup registration process easier, and once it’s passed it’ll be possible to register startups in one day (probably via that online portal or mobile app that had been promised during Startup India campaign).
An easy registration process can give a much needed boost to country’s startup ecosystem, because we already know how daunting it is to register a company in India. It’s worth pointing out that though our startup ecosystem is bustling with activity and has become 3rd largest in the world, the time required to register a company in our country is still much more than other countries where startups have become the global unicorns. Take a look at data given below:
|Country||Time required to start a business|
|United States||6 days|
|United Kingdom||5 days|
In current picture more than 4,000 startups are working in the country. Now these figures may increase significantly after roll out of an easier registration process.
Another major reform that FM announced for startups is Tax Holiday for 3 out of first 5 years. Moreover, funds of 500 crores have also been dedicated to Startup India campaign, and banks have been mandated to provide easy loans to Dalit and women entrepreneurs.
While making these announcements Mr. Jaitely said that startups are essential for country’s economy to generate employment. He also said that amendments will be made to Companies Act to ensure an easy business environment for country’s startups.
And finally, government also set the example of being tech savvy by announcing several technology-based initiatives to improve people’s lives. Given below are tech-oriented initiatives announced by FM in today’s budget speech:
- Government is planning to launch an online agriculture market for country’s farmers that’ll allow them to sell their produce online, which may help them in getting fair remuneration for their produce. The portal will be launched on Dr. B.R. Ambedkar’s birthday – that is, on 14th of April.
- A digital locker will be launched to help people save electronic copies of their school and college certificates. This will save them from having to submit xerox copies of certificates again and again.
- An e-sahyog portal will also be launched to help taxpayers solve their Income Tax related problems via an easy online interface. With this portal I-T department will be able to keep taxpayers informed regarding any mismatches, and taxpayers will also be able to respond to the department without having to visit the I-T office personally.
Other reforms promised by the government to Startups include self-certification based compliance, an easy exit plan via bankruptcy bill, 80% rebate in patent fees and so on. However, no information regarding them was announced in today’s budget speech. But whatever has been announced is encouraging enough for country’s budding entrepreneurs.