Government plans to make fund raising for startups easy - Start-Up Hyderabad
Loading Startup Hyderabad

Government plans to make fund raising for startups easy

 5 years ago    

“When someone works towards triumphing a goal with sheer determination, the whole world strives to walk along with you to achieve your aspirations.”

Same is the case with all those entrepreneurs who wake up with a dream in the mind and zeal to achieve it. To encourage these determined people, even the Government has been actively taking positive steps ahead to help these budding entrepreneurs turn their dreams into reality.

With Modi’s “Startup India” campaign, the entire startup eco – system came into the limelight. All thanks to this campaign, the people who did not know what a startup is, knew all about them post our Hon’ble PM’s speech at the launch of the campaign a few months ago. One important announcement during that speech was to ease – out the fund raising process for startups. In lieu to that decision by the Government of India, it has been revealed by sources that the Ministry of Finance has been in consultation with other agencies about rules related to wholly owned subsidiaries and joint ventures of companies investing back in India.

Entrepreneurs have been considering the foreign market ideal for their venture to take advantage of tax rules. Observing this pattern, the Government now is examining if there is a need to clarify on taxation of convertible instruments which has also been an issue raised by the startup community.

By trying to ease – out on fund raising, the Government aims to streamline the setting up process for startups, including certain basic important yet time taking processes such as filing requirements for compliance with FEMA. The Government has also been working on simplifying the regulations laid on foreign venture capital investment in the nation. Eminent agencies including SEBI and RBI have been roped into this matter and they are also trying extensively to make changes in the system of external commercial borrowing.

Apart from all the tries of the Government, it has gone a step ahead and announced a package, including tax waiver for startups for 3 years, though a minimum alternate tax would be applicable. In addition to this waiver, there are other few other relaxations made in the existing rules.

“This is a continuously evolving process and we are trying to see how the rules can be made easier and more attractive for entrepreneurs,” said an officer. The businessmen claim that it takes years to set their business in a manner to be able to make profits, and though the tax waiver is an advantage, yet the minimum tax would still not eradicate their entire problem.

Now since the Government has taken its foot forward, it’s sure going to be advantageous in some way to the eco – system. Though there are still some issues to be sorted out, I am sure the day is not very far when lot more things are going to turn in favour of this growing clan of startups.




  • Saritha Keshamoni

    Saritha Keshamoni

  • Ramya Sayaboni

    Ramya Sayaboni

  • Bhavitaavya Dharanikota

    Bhavitaavya Dharanikota

  • Sruthi Malla

    Sruthi Malla

  • Tata Teja

    Tata Teja

  • Ruchika Agarwal

    Ruchika Agarwal

  • Neeha Jayaram

    Neeha Jayaram

  • Rituka M

    Rituka M

  • Avatar

    Sameeksha Bansal

  • Rahul Das

    Rahul Das

  • Shravani Maddirala

    Shravani Maddirala

  • Saloni Anand

    Saloni Anand

  • Avatar

    Madhureema RoyMoulik

  • Srinivas Aki

    Srinivas Aki

  • Dhivya


  • Soumalya Chakraborty

    Soumalya Chakraborty

  • Sravya Gowrisetty

    Sravya Gowrisetty

  • Monika Guwalani

    Monika Guwalani

  • Ramesh Loganathan

    Ramesh Loganathan

  • Nischala Agnihotri

    Nischala Agnihotri

  • Varun Rastogi

    Varun Rastogi

  • Harshita Goel

    Harshita Goel

  • Nikita Kiran

    Nikita Kiran

  • Avatar

    Ankur Mehta

  • Neha Mohsin

    Neha Mohsin

  • Maddy Anand

    Maddy Anand

  • Ayyappa Nagubandi

    Ayyappa Nagubandi

  • Chandra Mouli Koduri

    Chandra Mouli Koduri

  • Divya Jyothi

    Divya Jyothi

  • Saptarshi Roy Chaudhury

    Saptarshi Roy Chaudhury

  • Ayushi Pandey

    Ayushi Pandey

  • Avatar

    Surya Vallae

  • Amita Sood

    Amita Sood

  • Gunajit Haloi

    Gunajit Haloi

  • Ravi Vaka

    Ravi Vaka

  • Avatar

    Manoj Surya

  • Priyanka Mechineni

    Priyanka Mechineni

  • Sreekar Reddy

    Sreekar Reddy

  • Ambika Asta

    Ambika Asta

  • Avatar

    Anish Tadimarri

  • Vana Korrapati

    Vana Korrapati

  • Avatar

    Vineel Reddy Pindi

  • Vinita Surana

    Vinita Surana

  • GR Reddy

    GR Reddy

image title here

Some title