A NEW
ECONOMIC ORDER ?
You may also call it , " Start
Up Act - 2015 "
# Objectives of the Act
Every year ,
to create 5 million Start Ups , each employing 2 persons , for a total of 10
million new jobs per year
# Methodology
* Instead of
Companies Act - 1956 , these Start Ups will be governed by the Start
Up Act - 2015
* A Start Up
can be launched by any Indian citizen under the age of 30 ( covering roughly 65
% of our population )
* A Start Up
will need to register online on the web site of the Income Tax Department and
obtain a unique " Start Up Number
"
* Although all
Start Ups will need to file annual Income Tax returns ( with full disclosure of
income / expenses / profits / sources of funds etc ) , it will not be required
to pay any Corporate Income Tax for the first 10 years of
its existence
* A Start Up will be
free to raise funds from any source (
Individuals / Companies / PE funds / VCs / Angel Investors / Religious Trusts
etc )
* 100
%
FDI will be permitted in Start Ups
* A Start Up can receive
loans or equity and be able to accept fixed deposits . It can also give loans
to individuals or other Start Ups or invest in other Start Ups by way of equity
* There will be no
restrictions on what interest ( on loans / FDs ) that a
Start Up may pay nor any restrictions on dividends
it may declare
The
dividends declared by Start Ups will not attract any Income Tax
* As far as the persons /
companies etc providing funds to Start Ups ( by way of loans or equity ) is
concerned , no questions will be asked re their source
of funds
# What will happen ?
* Billions of rupees
worth Black Money will flow into these Start Ups - money which is currently
lying unutilized or locked up in unproductive assets
* If Jan Dhan Yojana could
create 200 million bank accounts in 20 months , Start Up Act - 2015 ,
will create 200 million Start Ups in next 10 months !
All that led
to this World record was , someone suggesting the unthinkable :
" Let us enable poor people to open bank accounts
with ZERO bank balance "
" Start Up Act- 2015
", will unleash a similar " Start Up Tsunami " !
* Within 3 months , thousands
of Venture Capital Funds will be born , exclusively for funding of Start Ups (
You know who will set up these VCs ! )
* With NO Income Tax to be
paid , Start Ups will conduct all transactions through cheques ( receipts /
payments )
* GST collections will
go up
* Domestic
Savings Rate will go up
* Since millions of ( Black
Money holding ) individuals / businesses will come forward to fund these Start
Ups , lending pressure on banks will go down
* Who knows , Start Ups may get
into the business of Assets Reconstruction and relieve banks of NPAs !
* With locally / domestically
stashed Black Money flowing into the economy , our dependence on FDI will go
down
* Corruption will decline
drastically
# Why the need for
Start Up Act ?
It is simple
In the past 300 years , we have had different systems
of Economic Development , viz:
Communist / Socialist /
Capitalist
There were periods when each worked well - depending
upon the geography and the technological environment prevailing during those
periods
Today, Internet and mobile apps are pushing the World
towards an E - Commerce economy , which covers entire World seamlessly
Tomorrow , Internet of Things ( IoT ) , will tell us
what we need to do and when ! Our lives will be dictated by devices !
That will demand a brand NEW SYSTEM of economic
development which transcends national boundaries
Old rules / regulations / laws will not help us find
jobs for 12 million youths entering India's work force each year
An ocean-going " Ship " , cannot traverse
galactic distances of Space
Following in the footsteps of Albert Einstein / Stephen
Hawking , we need to
" Bend the Space "
And travel through the Worm-holes !
Using the hologram of the " Start Up Act - 2015
" , we must project our economy into :
" Distributist Economy ",
which goes beyond the " Communist / Socialist /
Capitalist " economies !
That is the ONLY WAY to create a ,
" New Economic Order / The
Start Up Economic Order "
Last - but not the least :
No politician will oppose the unanimous passing of the
" Start
Up Act - 2015 " , in Lok Sabha or Rajya Sabha
You know why !
-------------------------------------------------------------------------------------
hemen parekh
13 Sept 2015
(M) 0 - 98,67,55,08,08
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