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 created by Jan Dhan Yojana 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
www.hemenparekh.in>Blogs
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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