Kochi: Startup companies are expecting a tax relief and an indirect investment to the tune of Rs 2,000 crore from the Union Budget.
The stringent tax rules had become a matter of concern after many companies were looking at migrating to other nations, especially Singapore, for smooth operations.
The first ever mention of the start ups came in last year's budget. Even though a whopping Rs 10,000 crore was allocated for startups in 2014 budget, it did not materialise.
The Startup Village at Kinfra Hi-Tech Park, Kalamassery, expects that Finance Minister Arun Jaitley will propose a four-point plan in the budget.
1) They are looking forward to a friendly environment for business with RBI and SEBI intervention.
2) A company investing in a start up has to pay 30 per cent tax as of now, as new companies cannot afford this there should be a reduction in the tax.
3) The fraternity also expects an additional sum of Rs 250 crore to establish more incubators across India like the one which is there in the Kochi Startup Village.
4) The government should invest Rs 2,000 crores in the angel funding for startups.
“It has been over a 1,000 days since the establishment of the Startup Village,” said Pranav Suresh, CEO of Startup Village. Pranav added that there is a lot that can be done with regards to enhancing the early stage entrepreneurial ecosystem at the establishment.
“We would like to see the funds become more accessible to the incubatees of the Startup Village,” said Pranav.
Pranav said that allocating funds via banks create problems for upcoming enterprises. “A Startup refers to a concept or a new business model that is introduced in a new geographic location or environment. Startups are sometimes inspired by existing business modules. Whereas a business most often refers to the running of an existing business module. A bank will be able to understand the requirements of an existing business but not that of a Startup. Thus, it would be better if the funds for the incubators were received from co-investors, or as angle funds or through any transparent means,” explained Pranav.