Dear
Business Leaders / Economists
/ Editors / TV
Anchors :
Each
one of you have considerable influence over the Government officers in charge
of framing policies
As
leading " Opinion Makers " ,
your contribution in Transforming India , is invaluable
If
you believe that my suggestion detailed below , merits consideration , then I
request you to support it in whatever way you feel appropriate
I
had sent this to all concerned ministers nearly 4
months ago but it assumes URGENCY due to the expected announcement of a NEW START UP POLICY , by Hon Prime Minister , on 16th Jan
It
may still not be too late to speak up and request him to think " Out of Box " !
With
regards,
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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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
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