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IT industry body Nasscom has written to the government to ease the rules for registration of businesses, funding and simplifying compliance procedures.
Addressing reporters at its annual ‘Product Conclave’, R Chandrashekhar, President, Nasscom, said that while the government has been responsive to its recommendations, more steps need to be taken to create a conducive business environment. With a policy for start-ups in the works, the industry body has written to the government and is hoping that its recommendations get a nod.
Key issuesIssues such as removal of angel tax, minimising licences, permits and approvals for start-ups, enabling easier exit for entrepreneurs, credit guarantee for loans and simplifying norms for capital raising are some of the recommendations that the industry body has made to the government.
Some of these have been addressed by the government. For example, in June, SEBI mandated that stock exchanges should have a separate institutional trading platform for listing of start-ups from the new age sectors, including e-commerce firms, while the minimum investment requirement would be ₹10 lakh. Additionally, the mandatory lock-in period for the promoters and other pre-listing investors to six months, instead of three years as was the norm before, the regulator added.
However, industry watchers feel that this is only one part of the story and lot more needs to be done.
“If you look at ease of doing business, setting up ventures in this country and complying with various regulatory hurdles, we have still a long way to go,” said a founder of a grocery-based start-up, who did not wish to be named. He added that if these things continue, he will look at registering his venture in Singapore.
The industry body also believes that if these things are not addressed, the value addition will happen outside the country and this will hamper the country's start-ups to move up the value chain.
Growing ecosystemIndia is witnessing a burgeoning start-up ecosystem with around 4,200 start-ups, a 40 per cent growth over last year, in turn, becoming the largest start-up-base in terms of volume, according to a report by Nasscom and Zinnov.
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