Context
:
FM’s
one-person co vaccine leaves startups in two minds [ TOI / 02 Feb ]
Extract :
The proposal to
incentivise setting up a One
Person Company ( OPC ), might not led to any significant boost for startups,
though it may help micro-entrepreneurs formalize their business at a very early
stage
While allowing OPCs to
grow without any restrictions on paid-up capital and
turnover, allowing their conversion on any
other type of company at any time, FM reduced the residency limit for an Indian citizen to set up an OPC
to 120 days from 182 days and allowed NRIs to set up OPCs in India
“ The ability of OPCs to
raise external capital, be it angel funding or any other, is severely limited. OPCs can’t even issue
staff shares. This announcement is good for people who are running mom-and-pop
shops, since they can now have a corporate structure and avail of lower tax
rate “, said Siddharth Pai, founding partner at venture capital firm,
3one4Capital
Nithin Kamath,
co-founder and CEO of Zerodha,
- echoed Pai, saying, “ I don’t think it will
make any material impact on the Startup Eco-system like Bengaluru’s. May be it
will help micro or small-sized entrepreneurs like someone setting up a bakery “
But Ankur Bansal,
co-founder of BlackSoil,
[ ankurbansal@blacksoil.co.in
]
- a venture debt platform, said the biggest advantage of an OPC is that its identity
is distinct from that of its owner
===================================================
Thank
You, Smt Sitharamanji,
Without doubt, the relaxations announced
by you will go some way to make it easy for entrepreneurs to become “ Self
Employed “ . For that reason, this is a very welcome announcement
But when released, if the “ details
“ were to incorporate suggestions contained in my
following e-mail, then we will see 4 / 5 million OPCs registering within next 12 months !
With changes suggested by me, Shri Tomar
would be able to convince 140 million FARMERS, to register themselves as One
Person Companies ( OPCs ) and start entering into contracts with other FARMERS’COOPERATIVES
/ Companies / Food Corporation of India etc., under CONTRACT FARMING ACT ! In any case , currently farmers are not
liable to pay any Personal Income Tax !
Within 24 hours , farmers will withdraw their agitation demanding repeal of Farm Laws !
A NEW
ECONOMIC ORDER ? aka " Start Up Act - 2015 "…….. 12 Sept 2015
Extract :
#
Objectives of the Act
Every year , to create 5 million Start Ups , each employing 2 persons , for a
total of 10
million new jobs
#
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
* A Start Up will need to register online on the web site of the Income Tax
Department
and obtain a
* Although all Start Ups will need to file annual Income Tax returns ( with
full disclosure of income /
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
* 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
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
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
their source of funds
#
What will
happen ?
* Billions of rupees worth Black Money will flow into these Start Ups -
money which is currently lying
assets
* If Jan Dhan Yojana could create 200 million bank accounts in 20
months, Start Up Act - 2015 , will
10 months !
All that led to this World record 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 (
* With NO Income Tax to be paid, Start Ups
will conduct all transactions through cheques ( receipts /
* 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
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
* 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
·
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 projec
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 "
===================================================
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 02
Feb 2021
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