The Department for Promotion of Industries and Internal Trade (DPIIT) recently decided to constitute a startup advisory council to study various regulatory issues impacting growth of startups in India. These, amongst others, will include measures aim at easier incorporation of a company, easier compliances, reduction of tax compliance to less than one hour per month.
The Council will provide an institutional platform to the startup eco-system wherein stakeholders will be able to highlight their concerns and engage with the government. In effect, the Council will act as a bridge between the startup community as well as the government and all the regulators.
The advisory council will comprise of current entrepreneurs, past startup founders, incubators, representatives from academia, global and homegrown venture capitalists, along with representation from government departments and regulators that deal with startups. The government’s representatives shall include officials from Reserve Bank of India (RBI), DPIIT, Securities and Exchange Board of India (SEBI), Central Board of Indirect Taxes and Customs (CBIC), Central Board of Direct Taxes (CBDT), Ministry of Corporate Affairs (MCA) and others.
The Council is expected to meet once in every quarter. The first meeting of the startup advisory council is expected to take place before the upcoming Union Budget 2020 to discuss the issues and problems Indian startups have been facing.
NASSCOM welcomes the formulation of this council . It will help in addressing longstanding regulatory demands of the startup eco-system, thereby promoting ease of doing business.
An official notification on this is expected soon. We will keep you posted on further developments in this regard.