Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 15 February 2021

One Person Company [ OPC ] – A welcome FIRST step

 


 

Dear Smt Sitharamanji,


During your budget speech, you announced changes proposed to be made in respect of One Person Company


This is a very welcome step .


Though they may not admit publicly ( political hara-kiri ? ), Indian politicians and economists agree that, neither the Public Sector nor the Private Sector can provide jobs to 12 million youth every year – year after year


Now consider this :

Ø  No of Indians in age-group 15 -24 …………………… 229 million

Ø  Unemployment Rate in this group……………………..   24 %

Ø  That is ……………………………………………………………………  55 million


I hope the details of OPC relaxations planned, when released, will consider the suggestions that I had e-mailed in my following blogs :

A NEW ECONOMIC ORDER ? aka " Start Up Act - 2015 "…………….. [ 12 Sept 2015  ]

21-22 Budget Blues : One Person Company ( OPC )………………………[ 01 Feb 2021 ]

 

Mere tinkering with OPC won’t help .

With regards,

Hemen Parekh  /  16 Feb 2021 /  hcp@RecruitGuru.com

===================================================

Sources :

Single, Ready to Start Up  /  ET Magazine Cover Story / Feb 07-13, 2021

Unlisted companies get to access funds raised at shorter time span  / BL  / 13 Feb 2021

The one man show: Understanding the concept of One Person Company  / ET / 23 Nov 2019
FAQ On One Person Company  /   Ministry of Corporate Affairs 

One Person Company

===================================================

OPC Provision

As reported in ET Cover Story and other sources ( Budget )

As suggested in my blog / e-mail  (  12 Sept 2015  )

 

 

 

Financing - Funding

Easier Bank Credit facilities / Unlisted companies allowed to utilize the funds raised within a shorter period of time

A Start Up will be free to raise  funds from any source ( Individuals / Companies / PE funds / VCs / Angel Investors / Religious Trusts etc )

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 individuals or other Start Ups or invest in other Start Ups by way of equity

 

 

 

Hiring of employees

 

 

 

 

 

Audit & Documentation

No need for complex

 

 

 

 

Residency Limit

From 180 days to 120 days

 

 

 

 

Who can start

Earlier only Indian Citizen were allowed to start OPC, now even NRI

A Start Up can be launched by any Indian citizen under the age of 30 ( covering roughly 65 % of our population )

 

 

 

Max/Min Paid-up Capital Requirement

No more thresholds / Unlimited Growth / No min capital requirement of Rs 1 lakh

 

 

 

 

Conversion

Can convert into any type of company, at any time / Flexibility to keep it as an OPC or convert to Pvt Ltd Co / Bring in other Shareholders / offer ESOPs / No mandatory dilution of the Founder’s Equity / No need to find a Partner

Instead of Companies Act - 1956 , these Start Ups will be governed by the Start Up Act - 2015

 

 

 

Who will OPC help ?

Unorganized micro businesses

 

 

 

 

Process

Just register the OPC with RoC / No need for a MOU / hiring Auditors – Company Secretary / doing bi-annual Audits / holding Board Meetings / Ensuring quorums / Staff

A Start Up will need to register online on the web site of the Income Tax Department and obtain a unique " Start Up Number "

 

 

 

Corporate Tax Payable

 

Although all Start Ups will need to file annual Income Tax returns ( with full disclosure of income / expenses / profits / sources of funds etc ) , it will not be required to pay any Corporate Income Tax for the first 10 years of its existence

There will be no restrictions on what interest ( on loans / FDs ) that a Start Up may pay nor any restrictions on dividends it may declare

 

        The dividends declared by Start Ups will not attract any Income Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sunday, 14 February 2021

Reminiscing : Some past E - Mails to Shri Amitabh Kant re : www.EmpowerMSME.com



 

===================================================

 Background of  www.EmpowerMSME.com

=======================================

 

My Email to Shri Amitabh Kant / Secretary - DIPP

( 17 Nov 2014 ) :

 --------------------------------------------------------

Dear Amitabh ,


BENCH-MARKING   INDIA  INC

  

Launching of  MakeInIndia web site was a great initiative


It can be made greater if its scope gets expanded to enable millions of SME ( Small Medium Enterprises ) to quickly learn / absorb the best Manufacturing / Management practices of India's most successful companies


Over 20 / 30 / 40 years , these companies have developed / evolved , some of the best practices in different functional areas , such as :

 


* Project Planning / Execution

 

* Financing / Fund Raising

 

* Long Term Strategy

 

* Cost Accounting

 

* Capital Budgeting

 

* Dealership Network

 

* Supply Management

 

* Subcontracting / Outsourcing

 

* Vendor Development

 

* Statistical Quality Control

 

* Tendering

 

* Human Resource Development

 

* Maintenance Management

 

* Logistics Planning

 

* Salary / Wages Structuring......etc

 


In each of these Functional Areas , these Companies have created :


* Standard Office Procedures

 

* Approved Shop Practices

 

* Operation Manuals

 

* Forms ( Online / Offline )

 

* Documentation

 

* Software Tools

 

* Brochures / Pamphlets

 

* Agreements / Contracts

 

* Legal Undertakings / Notices

 

* Board Resolutions

 

* PERT Charts

 

* Process Monitoring Graphs......etc

 


And which are these " Successful " Companies ?

 


* L&T  /  Reliance / Birla Group / Adani Group / Infosys / Wipro / and hundreds of others


Can they be persuaded to share these data by uploading on MakeInIndia web site ?

 

 - for 25 million SME to download / modify and implement in their own companies ?


I am sure if our PM , Shri Narendrabhai Modi , makes such a request to ASSOCHAM / FICCI / CII and other similar organizations , these companies would gladly come forward to share with the rest of the Indian Corporate , the KNOWLEDGE / WISDOM  that lies captured in the above mentioned documents / manuals

 


It is high time , we think " Out Of Box "

 


It is time to convert Private Intellectual Property ( PIP ) , into National Intellectual Property ( NIP )

 


I am not suggesting that any Company should reveal any of its " Trade Secrets / Patents "

 


But if MakeInIndia has to become a resounding success , successful companies must undertake to mentor 25 million SME


-------------------------------------------------


*  hemen  parekh  /  17  Nov  2014  


-------------------------------------------------------------------------------------

 Reply  from Shri  Amitabh Kant  ( 19  NOV  2014 )

----------------------------------------------------------------------------------------

Dear Hemen,


This is a mobile first initiative. The site has to be kept extremely light in content. We will be happy to do it on DIPP.com. Too much content will make it too heavy.

Regards,

Amitabh Kant

 

==============================

 

Dear Mr. Parekh, 

 

Thanks. Greatly appreciate it. 

 

Regards, 

Amitabh Kant


-------------------------------------------------------

On 19/08/17 10:50 AM, Hemen Parekh <hcp@recruitguru.com> wrote:

Dear  Amitabh :

I realize that you may not have had a chance to look at my following email , being very busy with organizing event for :

“ Champions  of  Change “

I do hope you will find a few minutes over this week-end to send me your guidance on how to proceed in this matter

Warm Regards,

Hemen Parekh

+91 98675 50808

3P Consultants \ Strategic Human Resources Consultants


------------------------------------------------------------------------

From: Hemen Parekh [mailto:hcp@recruitguru.com]


Sent: 16 August 2017 11:02


To: amitabh.kant@nic.in; amitabhk87@yahoo.com; ceo-niti@nic.in


Cc: hcp@recruitguru.com


Subject: YOUR CLARION CALL TO START UPS

 

Dear Amitabh :

It was with great interest that I read your article ( India Start Up On The Path To Self-Reliance ), in yesterday’s ET

You wrote :

“ The government is growing more and more cognizant of the fact that it should be facilitative and act as a catalyst to provide greater momentum to this movement “

In his speech yesterday , Shri Modiji spoke of the resolve to build a “ New India “ by 2022 , and how everyone can – and must – contribute

That reminded me of my proposal ( see attachment ) to launch a portal for “ knowledge / expertise “ transfer from successful large organizations to 51 million MSME of India

I am happy to inform that Shri A M Naik ( Chairman , L&T ) has agreed to allocate necessary resources for development of a portal named :   www.EmpowerMSME.com

When ready by end of next month , our idea is to persuade ASSOCHAM to take-over its hosting / maintenance / marketing

We feel ASSOCHAM , with its membership of large organized sector companies , is ideally placed to persuade / motivate them to come forward with uploading their KNOWLEDGE  DOCUMENTS ( see attachment ) on this portal

I would highly appreciate your suggestions / guidance in this matter

Is it possible to persuade Shri Modiji to launch this ?

With Regards,

hemen  parekh 

www.hemenparekh.in 

hcp@RecruitGuru.com 

( M ) +91 - 98,67,55,08,08

 

----------------------------------
Amitabh Kant
CEO, NITI Aayog
Tel: 23096574 / 23096576
Fax: 23096575
email: amitabh.kant@nic.in

 

===================================================

Email dt  12 Sept  2017

 

Dear Amitabh :

 

While being interviewed on ET-NOW  last evening re urgency of Job Creation , you said , with your usual straight talk :

 

“ We need to fire-up our economy on all cylinders , including MSME , to boost exports “

 

I thought of keeping you informed that L&T engineers will give me final demo this Friday , of :

 

www.EmpowerMSME.com

 

I hope to send to you a link , next week for your viewing this platform and for getting your views / suggestions

 

A colleague suggested that , instead of approaching ASSOCHAM for hosting / managing / promoting this site , may be we ought to consider approaching CII

 

I would appreciate your guidance on this

 

With Regards,

 

hemen  parekh 

www.hemenparekh.in 

hcp@RecruitGuru.com 

( M ) +91 - 98,67,55,08,08

Email dt  31  Aug  2017

 

Dear Amitabh :

 

Could not reach you on phone since you are tied up at PMO

 

Would help if you can indicate possibility of Shri Modi being inaugurating www.EmpowerMSME.com

 

I am meeting L&T officers tomorrow morning

 

Thanks

 

With Regards,

 

hemen  parekh 

www.hemenparekh.in 

hcp@RecruitGuru.com 

( M ) +91 - 98,67,55,08,08

Email dt   25  Aug  2017

 

Dear Amitabh :

 

Indian Express ( 23 Aug ) carries a report which reads :

  

NITI Aayog CEO Amitabh Kant will Wednesday launch the “ Mentor India Campaign “, a strategic nation-building initiative to engage leaders who can nurture and guide students at more than 900 Atal Tinkering Labs

  

The concept behind .. www.EmpowerMSME.com.... , is very similar , viz : mentoring of MSME by managers of successful organized sector Companies

 

You will be happy to know that :

 

REGISTRATION database in EmpowerMSME has been kept same as in MSME.gov.in website , which to my knowledge , has by now , 44.4 lakh registrations

  

This means , if the two databases are synchronized ( with permission from Ministry for MSME ) , then from the very first day itself ,

 

·   Email ALERTS can be sent out to these 44.4 lakh MSMEs ,the moment any Government Ministry / Department / Agency , uploads any DOCUMENT ( Circular / Notice / Procedure / Tender etc ) , on www.EmpowerMSME.com  !


And not only that

  

Any of those “ ALERT Recipients “ could just click on the name of the Government Officer concerned ( who has uploaded that DOCUMENT ) , and respond immediately !

 

I believe such collaboration between ASSOCHAM ( who should host / manage EmpowerMSME ) and the Government , would bring unforeseen BENEFITS to our MSME , which contribute 45 % of India’s manufacturing OUTPUT and 40 % of its export ( - apart from 8 % of our GDP )

 

It is for this reason that I request your help in getting Shri Modi to inaugurate / launch , this portal ( - of course , at a time convenient to him )

 

If required , I can come to Delhi , towards end Sept and show you the actual working of  EmpowerMSME

 

If there are any questions , please phone :

 ( M ) 0 – 98,67,55,08,08 ( L ) 022 – 262,00,234

 

Awaiting your response

Warm Regards,

 Hemen Parekh

 3P Consultants \ Strategic Human Resources Consultants

========================================================================

 

From: amitabh.kant@nic.in [mailto:amitabh.kant@nic.in]


Sent: 22 August 2017 16:20


To: Hemen Parekh


Subject: Re: FW: YOUR CLARION CALL TO START UPS

 

Dear Mr. Parekh, 

 

Thanks. Greatly appreciate it. 

 

Regards, 

Amitabh Kant


===================================================

Email dt   22 Aug  2017

 

Dear Amitabh :

 

Thanks for taking time out from your very busy schedule to respond

 

Can I look forward to your help in getting this portal ,

 

www.EmpowerMSME.com  ,

 

launched by Shri Modi  ? – sometimes by end Sept


Warm Regards,

 Hemen Parekh

+91 98675 50808

 

Email dt   19  Aug  2017

 

Dear  Amitabh :

 

I realize that you may not have had a chance to look at my following email , being very busy with organizing event for :

 

“ Champions  of  Change “

 

I do hope you will find a few minutes over this week-end to send me your guidance on how to proceed in this matter

 

Warm Regards,

Hemen Parekh

+91 98675 50808

3P Consultants \ Strategic Human Resources Consultants


==========================================================================

                                     MEMORANDUM  OF  UNDERSTANDING

                                                               for

                                     www.EmpowerMSME.com

 

                                            [  Draft / 02 Sept 2017  ]

 

 

·         This MOU concerns launch of a portal   www.EmpowerMSME.com

 

·         PARTIES :

 

#    Ministry of  MSME ……………………….(   Hon Minister Shri…………………………. )

#    Niti  Aayog ……………………………………(  Shri Amitabh Kant , CEO )

#    ASSOCHAM……………………………………(  Shri. Sandeep Jajodia , President  )

#    Larsen & Toubro Limited……………….(  Shri  A M Naik , Group Chairman  )

#    3P Consultants ( P ) Ltd…………………(  Shri  Hemen Parekh , Chairman   )

 

·         OBJECTIVE  

 

To promote growth and competence of 51 million MSMEs of India through a Public – Private Partnership

 

·         HOW

 

By enabling large successful Companies / Organizations to share with the MSME , their know-how and domain expertise , developed / honed over the years

 

·         PROCESS

 

Portal will enable such “ Transfer of Competence “ as follows :

 

#   CONTRIBUTOR  Companies /  Organizations will upload on the portal ,

     documents / process-sheets / approved practices / drawings / forms etc,

     which are “ Non-Secret / Non-Proprietary “ and which , in the opinion of

     the CONTRIBUTORS , will benefit the MSME by downloading / modifying

     and adopting in their organizations

 

#   MSME Companies will search and download such documents , FREE of

     COST

 

#   CONTRIBUTOR Companies will be encouraged to form , online  subject –

    specific GROUPS , where MSME can join and get their questions answered

    by the experts from Contributor Companies

 

 

ROLE  OF  PARTIES :

 

#  Ministry  of  MSME

    Lend official support to the portal through exchange of MSME related databases

 

·       By uploading its Circulars / Notices etc , use the portal to disseminate its

        Policies/ Procedures among MSME ( delivered through portal as MSME ALERTS )

 

 

#  Niti  Aayog

    Act as MONITOR for “ POLICY INPUT / EXPLANATION GROUP “ , for seeking

        reforms-related inputs / suggestions from group members

 

·       Act as a NODAL AGENCY for synthesizing and conveying Policy / Procedure

        related suggestions from CONTRIBUTING / BENEFITING companies , to various

         Ministries , especially in the matter of “ EASE  OF  DOING  BUSINESS

 

 

#  ASSOCHAM

    Own / Maintain / Monitor the portal and further develop it as required

Act as Web Master for the portal

Promote the portal among its Members and encourage their participation

 

#  Larsen & Toubro Limited

    Original development of the portal as part of its CORPORATE  SOCIAL

    RESPONSIBILITY

Transfer of Source Code / Documentation to ASSOCHAM

Hand-holding during HOTO ( Hand-Over  / Take-Over ) period

    Providing technical guidance  to ASSOCHAM technical team, if desired

 

#  3P Consultants

    Conceptualisation / Design-Logic , and Guidance during the development of the

    portal by L&T

From time – to – time , providing suggestions for further development of the portal

    Transfer to ASSOCHAM, registered URL of the portal(www.EmpowerMSME.com )

 

OBLIGATIONS

 

·    Neither Ministry of MSME , nor Niti Aayog nor ASSOCHAM , owe any monetary

     obligation for this portal either to L&T or to 3P Consultants , for development and

     transfer of this portal to ASSOCHAM , which is being done , absolutely FREE of

     COST and purely as Corporate Social Responsibility of the companies concerned

 

·    The only obligation of ASSOCHAM would be to retain ( at the bottom of the web pages of the portal ), CREDITS / LINKS to these companies as shown