THERE IS STILL TIME TO ACT

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

www.hemenparekh.in >  Agenda  for  Reforms

Marol , Mumbai , India

hcp@RecruitGuru.com

( 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 !

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hemen  parekh

13  Sept  2015

www.hemenparekh.in>Blogs

hcp@RecruitGuru.com