New Delhi, March 28, 2017

The government today said it is making changes in the regulations that force startups to incorporate their units abroad. “We are changing regulations that are forcing startups to incorporate abroad. Some changes have been made and the rest should be done this year,” Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek said. He said this while replying to questions on twitter. The government is taking a lot of steps to promote budding entrepreneurs in the country. As part of the Startup India initiative, it has announced several benefits, including tax exemptions. Replying to a separate question on Assam, he said the government is in the process of formulating an industrial policy for the North Eastern region.

“We are also working with the state governments to organise a major investor promotion event,” he added. Talking about FDI, he said the government has announced several steps to attract foreign inflows. India received USD 55.6 billion FDI in 2015-16 and this fiscal so far (April-January this fiscal), the inflows are about USD 53 billion. Further, Abhishek said initiatives taken by the government in the last two years to improve ease of doing business will yield results this year.

He informed that the government is working to reduce the time to get PAN and TAN numbers. Replying to questions on access to funds to startups, the secretary said the DIPP is going to soon set up a Rs 2,000 crore credit guarantee fund with a view to provide easy funding facilities to startups. He said it is a challenge to get funds in India as the costs is high but the government is working on ways to reduce that cost. So far, 16 states have come out with startup policy.

[The Financial Express]