According to an article in The Economic Times web-site Modi Government is planning to bring Startup Act. It will be a small 2 page Act and it is expected that nearly 20 different Acts will be replaced by this Startup Act.
It is very good to feel after listening about any such step by the Central Government. Once it is implemented, for sure it will give a boost and joyous feeling to Startups and those people who want to start small business ventures but have not started due to cumbersome compliance processes.
It is a fact that lot of creativity and ideas to start good business ventures get lost in fear of compliances to various Acts, Laws and Legislations. Even many Startups die at an early age in the absence of proper support, guidance and Will to help Startups.
Government is expected to bring the detailed plan by December 2015. It will make the legal compliance path for Startups very easy. All new companies and companies less than age of 5 years are expected to be covered under Startup Act.
It is expected that it will address many problems of new business ventures like-initial business funding, delay in incorporation of new company, simplifying FEMA provisions for Startups etc. The Department of Industrial Policy and Promotion has been given the responsibility for making India a Startup heaven.
Although it will be very pleasant to see any policy change or a new policy which will help small and new business ventures, yet, bringing a new Act for some indicates that government is not able to make the process faster and business friendly in the present applicable legislative structure.
Business Mantra shall keep an eye on this change and provide a detailed analysis of the new Act whenever it is released by the Central Government.