Government to exempt start-ups from complex registration procedures
Mail Today Bureau October 2, 2015
The government plans to exempt start-ups from various rules and regulations till they achieve a particular turnover in order to give a fillip to the sunrise sector.
"Lots of start-ups are coming up in the country and there is a need to provide a conducive environment for their growth," Secretary in the Department of Industrial Policy and Promotion (DIPP) Amitabh Kant said on Thursday.
"I think the challenge really is that how do we ensure that they (start-ups) do not have to go through any of the government procedures and regulations. We are pushing that for a particular number of years or till they achieve a particular turnover," he explained.
He said, "these start-ups will not have to go through the complicate procedures of company registration or labour registration or income tax processes, it is something which we are trying to evolve," he said.
Kant also said India was seeing a huge energy, vibrancy and dynamism in start-ups and the country has to encourage a lot of people to get into manufacturing. Start-ups have to be given a major thrust, he added.
"We should be able to create an eco-system where manufacturing and young start-ups flourish," Kant observed.
After 'Make in India' drive, Prime Minister Narendra Modi in his Independence Day speech had announced a new campaign, 'Start-up India; Stand up India" to promote entrepreneurship.
Talking about the ease of doing business, Kant said the government has taken several steps to improve India's ranking. India is currently ranked 142nd among 189 nations in the World Bank's Ease of Doing Business 2015 study.
Commenting on the report, he said: "The World Bank study was based on only Mumbai and Delhi. Now Mumbai and Delhi are not business centres any more, they are commercial areas. Industries have moved out of Delhi and Mumbai to areas (such as) Haryana, Pune, Nashik and Aurangabad. So I think the World Bank study in some way is flawed because of its representative charter being only Mumbai and Delhi."
Kant expressed hope that, this year India's ranking would improve in the report.