Wednesday, 20 January 2016

TEN MILLION START- UPS IN ONE YEAR ?


TEN  MILLION  START- UPS  IN  ONE  YEAR  ?


Thank you , Narendrabhai , for the Start Up Action Plan announced last evening

I am glad that some of my suggestions ( sent to Ministers / Secretaries ) over the past 2 years , have been incorporated in the  ACTION PLAN , in respect of :


*    Self Certification

*    Simplified Registration thru Mobile App

*    Tax Exemption for Capital Gains

*    Entrepreneurship Program for 10 lakh students

*    No Corporate Income Tax for 3 years

   
 You will find my detailed suggestions covering these points in following blogs at ,



















Very likely , your initiative may see the birth of ten thousand new start-ups in 2016-17, which , together , might generate one lakh jobs

In itself, this will bring a new dynamism to India's Economy 

But that will still fall far short of 12 Million ( 120 lakh ) youth joining the work-force each year

Can all of these youth become Start Ups ?

It is entirely possible

All you need to do is to implement my following suggestion, described in ,


SUGGESTION

    *  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 , IF  IMPLEMENTED  ?


   *  Billions of rupees worth Black Money will flow into these Start Ups - money which is currently lying unutilized or locked up in unproductive assets

       
    *  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



Dear Shri Narendrabhai :


It is still not late to incorporate my suggestion in forthcoming Union Budget on 29 Feb 2016

This is your opportunity to


*   Dream BIG

*   Enable millions to dream big

*   Unleash the Entrepreneurial Genome of India's Youth

*   Make 21st Century , an Indian Century

*   notwithstanding the opposition in Rajya Sabha holding up passing of " The Insolvency and Bankruptcy Code , 2015 "



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hemen  parekh

17  Jan  2016

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Dear Legislator :


It is very likely that initially you may feel uncomfortable with my suggestion

But do give it a second thought !

If you are convinced about my logic , remember what Shri Narendra Modiji said at the Start Up Action Plan event :

" You should campaign in the social media to ask political parties to allow passage of key bills "


Do you agree with this suggestion ?


People voted you to power . Here is your chance to vote for the Self Employment





hemen  parekh


Marol , Mumbai , India


( M ) +91 - 98,67,55,08,08


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