NEW DELHI: A plethora of regulatory changes covering startups is in the works to reduce time spent on tax compliance by them to less than one hour a month along with easier incorporation processes and boosting the availability of global and domestic capital.

The Department for Promotion of Industry and Internal Trade (DPIIT) is in talks with the ministries of finance and corporate affairs, the Securities and Exchange Board of India (Sebi) and the Reserve Bank (RBI) over the new measures.

“We are working on regulatory changes that would aim at easier incorporation of a company, easier compliances, reduction of tax compliance to less than one hour per month,” said DPIIT secretary Guruprasad Mohapatra.

Startups currently need to comply with requirements such as filing returns for goods and services tax (GST) as well as other levies. They also need to ensure that they are observing other laws every month, all of which is time consuming and adds to the cost of innovators that often work on slim budgets.

India is at 136 on ‘starting a business’ in the World Bank’s ease of doing business table against an overall rank of 63. Some of the measures in the works are also expected to tackle this.

Published On : 27-12-2019

Source : Economic Times