icsi-southern india regional council

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ICSI-SOUTHERN INDIA REGIONAL COUNCIL

40th MANAGEMENT SKILLS ORIENTATION PROGRAMME

(MSOP)

24th JUNE 2019 to 10th JULY 2019

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PROJECT REPORT

ON

START UP INDIA

Project Date: 9th July 2019, Tuesday

Prepared and submitted by:

TEAM – B

NAMES REGISTRATION NUMBER

Ms. Thanmayi A.G 320004624/08/2012

Ms. Gayathri Devi M.S 340076921/05/2014

Mr. Sajith M 320494197/04/2009

Ms. Chaithanya B 350050678/02/2013

Mr. Satheesh Kumar S 320374008/11/2006

Ms. Kiruthika B 340058768/02/2014

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INDEX

Sl. No. CONTENT Page No.

Preface

Acknowledgement

1 Introduction 6

2 Eligibility for Start-Up Registration 11

3 How to Register 12

4 Benefits 16

5 Role of Government 19

6 Financing Methods 23

7 Successful Start-Up Stories in India 28

8 Success Story of UrbanClap 33

9 Challenges 40

10 Compliances 44

11 Role of Company Secretary 55

12 Conclusion 56

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PREFACE

This report is prepared as per the requirement of 40th Management Skill Orientation

Programme (MSOP) of Southern Regional Council (SIRC) – Chennai as prescribed by

the Institute of Company Secretaries of India.

The purpose of this report is to get well acquainted with what “Start-up India” actually

means.

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ACKNOWLEDGEMENT

It gives us immense pleasure to express our gratitude to the Institute of Company

Secretaries of India for giving us the opportunity to present our project on Start-Up

India.

We extend our sincere gratitude to our faculty of Institute and fellow professional

friends for their continuous support, encouragement, guidance, moral support and

healthy criticisms in developing the project.

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INTRODUCTION

India is changing and so are the aspirations of its 1.2 billion people. Our country, once

regarded as a third-world economy, is today the hub of billion-dollar firms and a hot

investment destination. This change is certainly not the result of a one-day effort and

no single person can take credit for bringing it. The change took about 68 years to

happen, facing challenges like corrupt governments, a weak economy, and low

purchasing power.

The software services companies brought about the first wave of change in the early

2000s when the demand for human resource in the IT sector was huge. But at that

time, the dream of opening a Start-Up was only for a rare breed of brave

entrepreneurs. The change really occurred when the recession hit the world in

2008-09.

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Now was the time for people to think different. And the cue came from Silicon Valley,

and its Start-Up culture. It is only possible in the IT sector for anybody to come up

with a brilliant new software solution or a fab looking site and instantly get rich. The

idea instantly caught the imagination of the young Indian. Moreover, the growth in

technology and the fast-growing demand for smartphones helped fuel the idea of

technology Start-Ups.

India is a young country with almost 65 per cent of the population in the age group

of 25-35 years. The trend of walking up the entrepreneurial path is steadily on the

increase. IT professionals are leaving their well-paid jobs in US and returning back to

India to launch start-ups. The placement trend is also towards start-ups rather than

big companies. We Indians of the new millennia are strong believers of pursuing our

own dreams rather than following the instructions of any foreign multinational.

Start-Up India Scheme

Start-up India Scheme is an initiative of the Indian government, the primary objective

of which is the promotion of start-ups, generation of employment, and wealth

creation. It was launched on the 16th of January, 2016 by Prime Minister Narendra

Modi at Vigyan Bhawan, New Delhi.

Objectives of the Scheme

• To boost up/promote start-up /Entrepreneurship

• To generate maximum employment

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• To encourage the people who have the potential to innovate and start their

own business.

• Making available funds support and incentives.

• Reducing the burden of tax, compliance & regulatory framework.

Features of the Scheme:

Just like the book from Jim Collins “Good To Great”, if the right people are

seated in the right seats of the bus, the start-up will eventually find its

direction towards success.

Forbes outlined that the businesses which are able to survive and succeed are the

ones that capture the qualities outlined below. These qualities are generally deeply

ingrained in the character of successful entrepreneurs. They are

Vision - A well-defined vision is a skill or gift that every company leader needs in

order to cross the finish line. It will be the major force behind an entrepreneur’s

success and will serve as a compass in tough times.

Speed- Getting things done in a quick manner is one of the many reasons why start-

ups are able to reach their goals and milestones. Successful start-ups never delay the

process of getting things done, and have to work as much as needed until something

is complete.

Budget Masters- A successful start-up is efficient in managing its finances and able

to operate very lean. Every angle should have its own budget assigned and

unnecessary expenses should be avoided. It is important to know what the company

needs in order to accomplish milestones and budget accordingly

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Social Skills - Networking is another reason for start-up success. A founding team

that knows powerful and influential people in the business is completely priceless and

can open the doors to partnerships and to find angel investors in a minute.

Discipline- It starts with self-control and is a product of a strong self-imposed

personal standard. Without discipline, start-ups fail to succeed in business even if

situated in the best economy.

Determination- Strong determination is always necessary for success to take place.

A successful start-up emphasizes the significance of determination when building a

business and never quits, even when the road gets bumpy and scary.

Ability to Adapt to Changes - The best start-ups are always willing to adapt to new

technologies. Adapting to change can lead to major breakthroughs.

Fundraising Skills - Cash flow is the blood line of any business. This means that

businesses can be ruined with inadequate capital. Successful start-ups are the ones

that have sufficient capital to run their business operations. The primary duty of a

start-up CEO is to be able to do start-up fundraising. A good way to raise money online

is platforms like 1000 Angels, as it allows the start-up to raise funds, in some cases,

in just 60 days from accredited investors

Unwavering Belief- Every business’s success revolves around taking risks.

Successful start-ups are prepared to take risks. As they say, the most profitable

investments usually require high amounts of risk

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Master of Time Management- Start-up life can be rough, between the mountain

of things to do and limited staff and resources, the company's success hinges on the

team's productivity and effectiveness to do more with less.

Execution - Lastly, having an idea is just the beginning and really, execution is 98%

in determining each business' success. For this part, the experience of the team is

critical as their backgrounds will help towards making more good decisions than bad

ones.

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ELIGIBILITY FOR START-UP REGISTRATION

• The company to be formed must be a private limited company or a limited

liability partnership.

• It should be a new firm or not older than five years, and the total turnover of

the company should be not exceeding 25 crores.

• The firms should have obtained the approval from the Department of Industrial

Policy and Promotion (DIPP).

• To get approval from DIPP, the firm should be funded by an Incubation fund,

Angel Fund or Private Equity Fund.

• The firm should have obtained a patron guarantee from the Indian patent and

Trademark Office.

• It must have a recommendation letter by an incubation.

• Capital gain is exempted from income tax under the start-up India campaign.

• The firm must provide innovative schemes or products.

• Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network

must be registered with SEBI (Securities and Exchange Board of India).

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HOW TO REGISTER A START-UP WITH START-UP INDIA

Step 1: Incorporate Your Business

One must first incorporate the business as a Private Limited Company or a Partnership

firm or a Limited Liability Partnership.

One has to follow all the normal procedures for registration of any business like

obtaining the certificate of Incorporation/Partnership registration, PAN, and other

required compliances.

Step 2: Register With Start-Up India

Then the business must be registered as a Start-Up. The entire process is simple and

online. Log on to the Start-Up India website

(https://www.StartUpindia.gov.in/content/sih/en/home-page.html) and fill up the

form with details of your business and upload certain documents.

Step 3: Documents to Be Uploaded (In Pdf Format Only)

A. A letter of recommendation/support

A letter of recommendation must be proposed along with the registration form. Any

of the following,

i. An Incubator established in a post-graduate college in India has to provide a

recommendation (regarding innovative nature of business) from in a format

specified by the Department of Industrial Policy and Promotion (DIPP);

OR

https://taxguru.in/company-law/process-incorporation-company-private-limited.html

https://www.startupindia.gov.in/content/sih/en/home-page.html

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ii. A letter of support by an incubator, which is funded (in relation to the project)

by Government of India as part of any specified scheme to promote innovation;

OR

iii. An Incubator recognized by the Government of India has to provide a letter of

recommendation (regarding innovative nature of business) in DIPP specified

format;

OR

iv. Any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network

with not less than 20% in equity, duly registered with SEBI that endorses

innovative nature of the business has A letter of funding;

OR

v. A letter of funding by Government of India or any State Government as part of

any specified scheme to promote innovation;

OR

vi. A patent filed and published in the Journal by the Indian Patent Office in areas

affiliated with the nature of the business being promoted.

B. Incorporation/Registration Certificate

We need to upload the certificate of incorporation of the company/LLP (Registration

Certificate in case of partnership)

C. Description of your business in brief

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A brief description of the innovative nature of the products/services.

Step 4: Answer Whether You Would Like to Avail Tax Benefits

Start-Ups are exempted from income tax for 3 years. But to avail these benefits, they

must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP,

Govt. of India can now directly avail IPR related benefits without requiring any

additional certification from IMB.

Step 5: You Must Self-Certify that You Satisfy the Following Conditions

a) You must register your new company as a Private Limited Company, Partnership

firm or a Limited Liability Partnership

b) Your business must be incorporated/registered in India, not before 5 years.

c) Turnover must be less than 25 crores per year.

d) Innovation is a must– the business must be working towards innovating something

new or significantly improving the existing used technology.

e) Your business must not be as a result of splitting up or reconstruction of an existing

business.

Step 6: Immediately Get Recognition Number

That’s it! On applying you will immediately get a recognition number for your Start-

Up. The certificate of recognition will be issued after the examination of all your

documents.

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However, one should be careful while uploading the documents. If on subsequent

verification, it is found to be obtained that the required document is not

uploaded/wrong document uploaded or a forged document has been uploaded then

you shall be liable to a fine of 50% of your paid-up capital of the Start-Up with a

minimum fine of Rs. 25,000.

State wise Performance (Till Dec 2018) given by Government of India:

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BENEFITS:

Simple process

Government of India has launched a mobile app and a website for easy registration

for Start-Ups. Anyone interested in setting up a Start-Up can fill up a simple

form on the website and upload certain documents. The entire process is

completely online.

Reduction in cost

The government also provides lists of facilitators of patents and trademarks. They

will provide high quality Intellectual Property Right Services including fast

examination of patents at lower fees. The government will bear all facilitator fees

and the Start-Up will bear only the statutory fees. They will enjoy 80% reduction

in cost of filing patents.

Easy access to Funds

A 10,000 crore rupees fund is set-up by government to provide funds to the Start-

Ups as venture capital. The government is also giving guarantee to the lenders to

encourage banks and other financial institutions for providing venture capital.

Tax holiday for 3 Years

Start-Ups will be exempted from income tax for 3 years provided they get a

certification from Inter-Ministerial Board (IMB).

http://www.startupindia.gov.in/

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Apply for tenders

Start-Ups can apply for government tenders. They are exempted from the

“prior experience/turnover” criteria applicable for normal companies answering to

government tenders.

R&D facilities

Seven new Research Parks will be set up to provide facilities to Start-Ups in the

R&D sector

No time-consuming compliances

Various compliances have been simplified for Start-Ups to save time and money.

Start-Ups shall be allowed to self-certify compliance (through the Start-Up mobile

app) with 9 labour and 3 environment laws (for list of white industries which are

eligible under self-compliance.

Tax saving for investors

People investing their capital gains in the venture funds setup by government will

get exemption from capital gains. This will help Start-Ups to attract more investors.

Choose your investor

After this plan, the Start-Ups will have an option to choose between the VCs, giving

them the liberty to choose their investors.

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Easy exit

In case of exit – A Start-Up can close its business within 90 days from the date of

application of winding up

Meet other entrepreneurs

Government has proposed to hold 2 Start-Up fests annually both nationally and

internationally to enable the various stakeholders of a Start-Up to meet. This will

provide huge networking opportunities.

The result of first ever Start-Up state ranking were announced in December 2018

by the Department of Industry and Internal Trade based on the criteria of policy,

incubation hubs, seeding innovation, scaling innovation, regulatory change,

procurement, communication, North-Eastern states, and hill states.

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ROLE OF GOVERNMENT:

The Ministry of Human Resource Development and the Department of Science and

Technology have agreed to partner in an initiative to set up over 75 such Start-Up

support hubs in the National Institutes of Technology (NITs), the Indian Institutes of

Information Technology (IIITs), the Indian Institutes of Science Education and

Research (IISERs) and National Institutes of Pharmaceutical Education and

Research (NIPERs).

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing

business’ in the country and contribute to an ecosystem that is conducive for the

growth of start-up businesses.

Department for Promotion of Industry and Internal Trade (DPIIT)

Recognition

Under the Start-Up India Scheme, eligible companies can get recognised as Start-Ups

by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-

tracking

Start-Up India: 80 IAC Tax exemption:

Post getting recognition a Start-Up may apply for Tax exemption under section 80 IAC

of the Income Tax Act. Post getting clearance for Tax exemption, the Start-Up can

avail tax holiday for 3 consecutive financial years out of its first ten years since

incorporation.

https://en.wikipedia.org/wiki/Ministry_of_Human_Resource_Development_(India)

https://en.wikipedia.org/wiki/Department_of_Science_and_Technology_(India)

https://en.wikipedia.org/wiki/Department_of_Science_and_Technology_(India)

https://en.wikipedia.org/wiki/National_Institutes_of_Technology

https://en.wikipedia.org/wiki/Indian_Institutes_of_Information_Technology

https://en.wikipedia.org/wiki/Indian_Institutes_of_Information_Technology

https://en.wikipedia.org/wiki/Indian_Institutes_of_Science_Education_and_Research

https://en.wikipedia.org/wiki/Indian_Institutes_of_Science_Education_and_Research

https://en.wikipedia.org/wiki/National_Institutes_of_Pharmaceutical_Education_and_Research

https://en.wikipedia.org/wiki/National_Institutes_of_Pharmaceutical_Education_and_Research

https://en.wikipedia.org/wiki/Reserve_Bank_of_India

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Start-Up India: Tax Exemption under Section 56 of the Income Tax Act

(Angel Tax)

Post getting recognition a Start-Up may apply for Angel Tax Exemption.

Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:

a. The entity should be a DPIIT recognized Start-Up

b. Aggregate amount of paid up share capital and share premium of the Start-Up

after the proposed issue of share, if any, does not exceed INR 25 Crore.

SOME GOVERNMENT SCHEMES:

1. NewGen IEDC – Introduced last year, the NewGen Innovation and

Entrepreneurship Development Centre is applicable to industries like healthcare

services, chemicals, hardware, aeronautical/defense, IT, AR/VR, construction,

design, food and beverages, textiles, nanotechnology, and renewable and non-

renewable energy sources, among others. It provides a one-time non-recurring

loan of up to 25 lakhs to finance Start-Up units.

2. AIC – Headed by the Atal Innovation Mission, the Atal Incubation Centres provide

grant-in-aid of Rs. 10 Cr to every AIC. The duration of the grant is a maximum of

5 years. Set up under the NITI aayog, the purpose of AICs will be to provide

financial aid and infrastructure assistance to different Start-Ups in sectors like

chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace

& defense, agriculture, AI, AR/VR (augmented + virtual reality), automotive,

telecommunication & networking, construction, design, non-renewable energy,

renewable energy, green technology, fintech, Internet of Things, nanotechnology,

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and food & beverages, among others. Conducting training and entrepreneurship

workshops, organizing inspirational programs, enabling access to necessary

infrastructure, prototyping or research facilities, as well as creating a group of

mentors to guide the entrepreneurs, are some of the tasks that an AIC is expected

to perform.

3. CLCSS – Under MSME, the Credit Linked Capital Subsidy Scheme is a means to

provide subsidy to manufacturing units who have upgraded their machinery with

state-of-the-art equipment. This scheme is meant to encourage manufacturing

units to buy the latest equipment, and facilitate technology upgradation. The way

this works is that any SSI unit which has upgraded its machinery can apply for a

15% subsidy on a loan amount of up to 1 Cr.

4. SMILE – The SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium

Enterprises provides soft loans to MSME units at reasonable terms, to meet the

debt-equity ratio of a unit or to help in its growth and expansion. The loan is

applicable for a maximum period of 3 years. The amount disbursed varies on the

category the unit falls under, with 10% or a maximum of 20 lakhs for General

category, and 15% or a maximum of 30 lakhs for SC/ST, PwD, and women.

5. Loan for Rooftop Solar PV Power Projects – Headed by the Indian Renewable

Energy Development Agency (IREDA), this scheme promotes renewable energy

development by providing support for solar PV projects on rooftops. The IREDA

will provide 70% of the project cost, while the entrepreneur will contribute the

remaining 30% of the amount. In some projects, where the unit has great track

record, higher benefits, and more productivity, the IREDA may extend the loan

https://sidbi.in/SMILE.php

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amount to 75% of the project cost. The loan has to be repaid in a maximum of 9

years.

6. M-SIPS – The Modified Special Incentive Package Scheme provides capital

subsidies to manufacturing and electronic units in sectors of technology hardware,

IoT, automotive, renewable and non-renewable energy sources, nanotechnology,

green technology, and aerospace and defense industries. Under this scheme,

there’s a provision for 20% capital subsidy in SEZ, and 25% in non-SEZ, for

business units in manufacturing and electronics.

7. Coir Udyami Yojana: Headed by the Coir Board, this scheme aims to set up coir

units across India. It funds project costs up to Rs 10 Lakh and one cycle of working

capital. The total funds lent should not exceed 25% of the project cost. The capital

expenditure is financed through a term loan and working capital in cash credit (short

term cash loan). The rate of interest will be at par with the base rate. Repayment

is to be made within 7 years.

8. Market Development Assistance Scheme for MSMEs: This is a scheme that

facilitates and helps the micro, small and medium enterprises gain exposure by

participating in international exhibitions and trade fairs under the MSME India kiosk.

The scheme is aimed at displaying the potential as well as strengthening the small

and medium manufacturing units.

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FINANCING METHODS FOR START-UPS

The main funding options include:

• Personal savings,

• Loans: MUDRA, Loans by BANKS, FIs

India has the third largest Start-Up base in the world (2016 report by NASSCOM),

behind the US and the UK Government Loan for Business Start-Ups in India

1. The Credit Guarantee Scheme (CGS): The credit guarantee scheme for micro

and small enterprises was launched by the government of India, to make available

collateral free credit to the micro and small enterprises sector. Both the new and

the existing enterprises are covered under this scheme. This scheme helps micro

enterprises and first-generation entrepreneurs, avail small business loans at a

reasonable interest rates. The amount of loan given to any applicant, depends on

the individual’s eligibility and feasibility of the business. The maximum limit however

is Rs 100 lakhs. The scheme also caters to strengthen and rehabilitate existing

sick units. With SIDBI (Small Industries Development Bank of India) as its partner,

the Government of India is running this scheme (CGS), which gives unsecured loans

to Micro and Small Enterprises. A maximum of Rs 100 Lakhs can be borrowed in

the form of Term Loans or Working Capital Loans. Both new and existing Micro and

Small Enterprises engaged in manufacturing or service activities except in

Educational Institutions, Agriculture, Self Help Groups (SHGs) and Training

Institutions can avail these loans.

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2. MUDRA Loan Scheme: The purpose of the MUDRA (Micro Units Development

and Refinance Agency Ltd) scheme, is to provide adequate funds to the micro units

and the non-corporate small business sector. The government has identified the

lack of substantial funds required for the growth of the small and medium scale

business in the country. The scheme has been designed keeping in mind the stage

of growth and funding requirements of the beneficiary micro units and so is

categorized under three stages.

They are: Banks facilitate loans under the MUDRA scheme as per customer

requirements. The loans under this scheme are collateral free loans. Micro-Units

Development and Refinance Agency Ltd. also known as MUDRA, is an agency

launched by the Government of India. It funds non-corporate small business sectors

in the country. The loans under MUDRA are granted for non-farm income-

generating activities.

Categories under MUDRA:

• Shishu: These are loans up to Rs 50,000 with no collateral.

• Kishor: These are loans above Rs 50,000 and up to Rs 5 Lakhs.

• Tarun: These are loans above Rs 5 Lakhs and up to Rs 10 Lakhs.

These loans are designed based on the stage of business and funding needs of the

beneficiary.

3. Stand Up India Scheme: Stand-Up India Scheme Facilitates bank loans between

Rs 10 Lakhs and 1 Crore, to at least one Scheduled Caste (SC) or Scheduled Tribe

(ST) borrower for setting up a greenfield enterprise. This enterprise may be in

manufacturing, services or the trading sector. The loans are granted to at least one

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woman borrower per bank branch. The scheme aims at promoting woman

entrepreneurship among the scheduled castes and scheduled tribes. Stand-Up India

is a special government scheme which aims to financially empower SC/ST and

women entrepreneurs of the country. It also aims to get rid of License Raj and set

up Greenfield enterprises. An amount ranging from Rs 10 Lakhs to Rs 1 Crore can

be borrowed to start a manufacturing, trading or service unit. The loan tenure is 7

years. These loans are to be granted to at least one SC or ST and at least one

woman borrower per bank branch.

4. Bank Credit Facilitation Scheme: This scheme was started by National Small

Industries Corporation (NSIC), to fund MSMEs registered in India. NSIC has

partnered with various nationalized and private sector banks and arranges credit

support from banks at no cost to the MSMEs. The credit repayment tenure depends

on the income generated. It varies from 5-7 years and can go up to 11 years in

exceptional cases.

5. National Bank for Agriculture and Rural Development (NABARD): NABARD

is a development bank that aims to provide and regulate credit and other facilities

that helps to promote and develop agriculture, cottage and small industries,

handicrafts and village industries. NABARD is entrusted with providing refinance to

lending institutions in rural areas. It acts as a facilitator for rural prosperity

promoting institutional development by evaluating, monitoring and inspecting the

client banks. The borrowers are required to carry out the necessary paperwork and

submit the necessary documents to avail these loans. As these schemes are backed

by the government, some of the loans are collateral free.

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6. Venture Capital: Venture capital is also a way in which the private and public

sectors can construct an institution that systematically creates business networks

for the new firms and industries, so that they can progress and develop. This

institution helps identify promising new firms and provide them with finance,

technical expertise, mentoring, marketing "know-how", and business models.

Flipkart, India’s leading e-commerce majorly owned by Walmart, announced the

launch of a Venture Fund to back early stage start-ups working on next generation

technology for the internet economy in the country.

7. Angel Investors - An angel investor is usually a high net worth individual who

provides financial backing for small Start-Ups or entrepreneurs. Often, angel

investors are found among an entrepreneur's family and friends. The funds that

angel investors provide may be a one-time investment to help the business get off

the ground or an ongoing injection to support and carry the company through its

difficult early stages.

8. Crowdfunding - Crowdfunding is the practice of funding a project or venture by

raising small amounts of money from a large number of people, typically via the

Internet. Crowdfunding is a form of crowdsourcing and alternative finance.

Check list before applying for the loan:

• Personal background: details of your background are checked.

• Crimes committed can disqualify the applicant or delay the process of

sanctioning the loan

• Resume or business background: details of the business and the applicants

experience in growing the business will be asked for.

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• Business plan: the applicant needs to write a well thought business plan in the

loan application.

• Personal and business tax returns: applicant must submit personal and business

tax returns for the past 3 years.

• Financial statement: applicant must submit the profit and loss statements,

bank statements, balance sheets, and cash flow forecasts. Legal documents:

applicant must provide proof that the business is run legally. Collateral (if

required): Collateral will strengthen your profile and may help you get a bigger

amount of loan.

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SUCCESSFUL START-UP STORIES IN INDIA

More than 1,200 start-ups came up in 2018, including eight unicorns, taking the total

number to 7,200 start-ups, NASSCOM reported.

The report also said there was a 50 per cent increase in number of advanced tech

start-ups since 2017. According to it, start-up ecosystem has regained momentum

after the slowdown in 2016-17. These companies created 40,000 new direct jobs while

there was threefold increase in indirect jobs.

The report said more than 400 plus start-ups expanded globally including travel and

hospitality company Oyo, cab aggregator Ola, education technology Byju's, Zomato

and Wittyfeed.

SOME OF THE RENOWNED YOUNG ENTREPRENEURS OF INDIA

1. Advait Thakur, 15 Years

Founder & CEO – Apex Infosys India

Advait is an Indian computer programmer. He is certified by Google and Bing,

and is ranked 4th in Wikia’s young entrepreneur list of 2017. In 2015, at the

age of 12, he founded Apex Infosys India which is now a domain name registrar

and provides digital solutions to different clients across the globe. At the age

of 14, he developed an app named “Technology Quiz” to help kids learn about

science and technology.

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2. Shravan Kumaran and Sanjay Kumaran, 17 and 15 years respectively

Co-founder, President & Co-founder, CEO respectively: Go-

Dimensions

Sanjay and Sharavan (biological brothers) are the youngest entrepreneurs of

India. Together, they’re the brain behind the foundation of GoDimensions in 2011

at the age of 12 and 14 years old. Both are the world’s youngest mobile

application programmers who developed more than 11 apps which have

received 70,000+ downloads and have an average rating of 4.5. Both brothers

were listed in Forbes 30 under 30 list in 2017.

3. Farrhad Acidwalla, 25 Years

Founder – Rockstah Media

At the age of 16, he borrowed $500 from his father to buy an online domain

and started organizing a web community and website design particularly

focused on aviation and aeromodelling. He sold this business at $25,000 later.

He then used that money in founding a web developing media firm

named Rockstah Media.

4. Arjun Rai, 20 years

Founder & CEO– Canvs+ and Odyssey Ads

Arjun had entrepreneurial skills since he was 7 years old. He was working as

COO of the online advertising company in 2010 which he left and started its

own Odysseys Ads offering solutions for the 21st-century marketers.

He had already founded two successful Start-Ups while he was studying and

graduating from New York Institute, named as BizDen, and FuelBrite.

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5. Sreelakshmi Suresh

Sreelakshmi Suresh (Young Indian Entrepreneur), the youngest web designer and

CEO in the world. At the mere age of 10, she established eDesign — a venture

which is now a web designing company that offers SEO, web design, and other

web — related services. Sreelakshmi has developed over 100 websites for

renowned institutions and organizations across India!

Scenarios Before and After Start-ups:

S. No. Before After

1 Cash transactions Paytm

2 Direct purchase of mobile phones and appliances Flipkart

3 Buses and cabs OLA

4 Standing in queue for booking flight tickets Make my trip

5 Direct purchase of dresses Shop Clues

6 Direct booking of rooms OYO rooms

7 Food Zomato

8 Standing in queue for booking bus tickets Red bus

9 Visiting hospital Practo

10 Visiting banks Bank bazaar

SOME OF THE RENOWNED START-UP STORIES IN INDIA

1. Paytm - An Indian electronic payment digital wallet and e-commerce company

based out of Delhi NCR, India. The company founded in August 2010 by Vijay

Shekhar Sharma.

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2. Flipkart - Many people call it as an Indian Amazon. Walmart has owned around

77% of shares from this Bengaluru-based firm.

3. Ola Cabs - ANI Technologies Pvt. Ltd. stylised as OLA, an Indian origin online

network and aggregator for day-to-day transport. Ola founded by an IIT

Bombay Alumni called Bhavish Aggarwal and Ankit Bhati in December 2010,

which has become India’s most popular mobile app for transportation.

4. Make My Trip - An Indian online travel company, founded by Deep Kalra in

2000. Headquartered in Gurgaon, Haryana, the company provides online travel

services like flight tickets, domestic and international holiday packages, hotel

reservations, rail and bus tickets, etc.

5. ShopClues - It is India’s first and the largest managed marketplace, clocking

more than 100 million monthly visitors on its website. Founded in July 2011 in

Silicon Valley, with 5cr listed products and over 500,000 + merchants.

6. OYO Rooms - OYO is India’s largest branded network of hotels founded by

Ritesh Agarwal, India’s first graduate of the Thiel Fellowship, a program started

by Paypal founder, Peter Thiel. OYO currently operates in India & Malaysia with

over 200+ locations.

7. Zomato - A restaurant search and discovery app, providing in-depth

information for over 1 million restaurants across 23 countries.

8. RedBus - redBus.in, acquired by Ibibo, is the India’s largest online bus

ticketing website with the largest network of bus operators 1800+ and growing)

and satisfied customer bookings up to 80,000 tickets a day. They provide over

67000+ live routes across India.

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9. Practo - Practo, a health tech company with the motto of #DoGreat is

prospering greatly with 2,00,000 doctors and 20 million patients across the

world has kick-started its journey in the year 2008 from Bengaluru by two

NITians Shashank and Abhinav Lal.

10. BankBazaar - BankBazaar, a FinTech company took its shape in the year

2008, Arjun Shetty and Rati Shetty along with Adhil Shetty established

BankBazaar, the one destination for comparison and application of financial

products in India. The company is also providing Free Credit score service for

the customer with few steps. BankBazaar started its journey in Chennai by tying

up with ING Vysya and HDFC. Currently, BankBazaar is offering its services to

5,00,000 customers across 1336 cities and towns in India with 30 partners.

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SUCCESS STORY OF URBAN CLAP

Legal Name - UrbanClap Technologies India Pvt. Ltd

“UrbanClap is a platform to make our urban lives more fulfilling to solve our

needs in a clap. Hence the name, UrbanClap”

UrbanClap is recognized as the fastest-growing Start-Up in India. It is a mobile

marketplace for local services. They help customers hire trusted professionals for all

their service needs. They are also staffed with young, passionate people working

tirelessly to make a difference in the lives of people by catering to their service needs

at the doorsteps.

Story Before Urbanclap:

In early 2014, Varun Khaitan and Abhiraj Bhal founded Cinema Box, a service which

helped travellers stream movies on their smart phones while on a train, bus or airplane

through Wi-Fi.

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Chandra’s first start-up Buggi was focussed on the carpooling and ride sharing space.

It is a mobile application to book on-demand auto rickshaws.

Birth of Urbanclap:

The idea was to redefine how local services and servicemen were being hired in India.

The founders saw opportunity in the broken system of how the country connected

with various service providers.

The company began with a vision of going beyond being a mere search and discovery

platform by building a business model that encompasses on-boarding service

providers, training them, managing quality control while at the same time giving users

the assurance of standardized services and prices on a platform where they could

make payments and write reviews. UrbanClap rejects as many as 75% of the supplier

applications it receives to keep quality intact.

Founders & Board Members of Urban Clap:

1. Abhiraj Bhal

2. Raghav Chandra

3. Varun Khaitan

Batch mates from IIT Kanpur Varun Khaitan and Abhiraj Bhal have known each

other for a decade now. After spending a few years at The Boston Consulting

Group, both started discussions on what and how-to start-up over weekend

conference calls across the seas. They later got together in Delhi. They met Raghav

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Chandra, an engineer at Twitter, through mutual friends and connected instantly.

Their shared ambitions, interests and complementary skill sets drew them

together.

The company founded by the trio, UrbanClap, is claimed to be one of the

largest mobile services market place in India today.

Investors in Urban Clap:

1. VY Capital

2. Bessemer Venture Partners

3. SAIF Partners

4. Accel Partners

5. Tata Sons

6. Snapdeal co-founders - Kunal Bahl and Rohit Bansal

7. Stead-view capital

Operations:

It is a privately held company backed by venture capital fund with its primary office in

Gurgaon, Haryana.

UrbanClap has created a technology platform, a website and a mobile app, and has a

presence in eight cities: Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata,

Mumbai and Pune. It recently expanded operations into Dubai with five services.

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Among the cities, Delhi contributes the largest share to its revenue, followed by

Bengaluru and Mumbai. While the services were recently launched in Ahmedabad and

Kolkata, Bhal targets a launch in Chandigarh and Jaipur.

UrbanClap does not own its inventory of independent professionals and service

providers on its platform; it instead aggregates them and provides a standardized

service to the end customer.

Growth so far...

a) 100000+ Trusted Professionals & Verified experts

b) 3000000+ Happy Customers

c) 8 Cities in a Year

d) 107 live services

Acquisitions:

Urbanclap has also acquired two companies so far

1. Good service

2. Handy home.

Services:

Services provided by urban clap includes the following

Beauty Services Hair Care

Skin care and makeup

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Interiors Planning & Design

Decor & Style

Wedding

Wedding invites, planning, fashion,

makeup, mehandi, photography.

Homecare Appliance repair, CCTV, Packers and

movers, Pest control tips.

Lifestyle Health & Wellness, Foor & Diet, Birthday

Party, travel

Business Web & Graphic design, Legal etc.,

Process:

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Income:

UrbanClap’s operating revenue consists of commissions it makes from each successful

service offered. It charges a commission of around 10-20% of the transaction fee from

service providers, depending on the type of service availed by the customer.

In case of beauty, its take rate is 20% of the value of services rendered. As a result,

beauticians are able to see a three to four times increase in earnings vis-à-vis working

in a beauty salon, says the company.

Operating Revenue:

Operating revenue grew four times to Rs. 45 crore in FY 2017-18 from Rs11 crore in

FY 2016-17. In the financial year 2018, the revenues reached Rs. 53.37 Cr

As per economic times – The Company has reported strong top line growth driven by

a jump in service orders and entry into new verticals during the financial year 2019.

UrbanClap’s net worth for FY18 has been $25.97 Mn (INR 190.46 Cr).

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Team Size & Requests:

With a team of 320, the company clocks about 7,000-8,000 service requests daily.

While the average basket size is Rs3,000- 4,000, the price of a service can range from

Rs200-250 for plumbers to as high as a few lakhs for an interior design project.

IPO: We are not building this company to sell. We are building this company to last

forever, so we are not going to sell. We will go for an initial public offering (IPO) and

we will be a very large Indian and potentially a global company.

No wonder UrbanClap is one of the fastest growing start-ups in India. It simply

connects online users with offline businesses. Their vision is to use technology and

smart processes to structure the highly unorganized service market in India and

emerging markets.

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CHALLENGES

1. Marketing issues: Branding Problem:

Marketing an established brand, such as Dove, is one thing. Trying to start a

business, create a product, find clients and finance it all is much more difficult.

Start-ups need to be more proactive and the challenge was in identifying the right

venues where prospective clients would be located. In addition to figuring out how

to reach prospects, deciding to invest in marketing was daunting because of the

cash flow challenges that most start-ups face.

2. MCA Compliance cost:

A Start-Up running as a private limited company has to follow numbers of

compliance as laid down by various statutes and other regulatory bodies. These

include but are not limited to the periodic filing of tax and other returns, holding

the board and other meetings, maintaining statutory books and accounts etc. Non-

compliance can attract penalties and may also bring an end to business in extreme

cases.

3. Competition of big players:

A start up needs to understand the type of competition it is playing against. The

different types of competitions start-up faces are:

Direct competition: are competitors who target the same type of consumers and

do almost the same thing or want to achieve the same thing.

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Indirect competition: are competitors that might be vending something similar to

your product and targeting the same niche market just in a delusional form.

Once you get that all figured out its time to buckle down to the subsets of the

competition.

Actual competition: are business that are currently in the market with you.

Potential competition: are businesses to come. You still got to worry about them

because they can swipe you out your spot.

The best way you can give your 110% and have a higher stake in winning the

market is by comparing your Start-Up or business with others around you. Always

penetrate the businesses, look how to destroy the competitors’ business legally.

4. Cash Flow challenges and Huge CAPEX:

One of the most important aspects of your Start-Up is the cash flow. Cashflow is

one of the ultimate deciders of business success. As a business grows, borrows

and makes profit, it will begin to accumulate costs and income streams. All of these

combine together to form cashflow. If you’re not in control of cashflow, however,

you will soon find your Start-Up falling down.

Cashflow needs to be there before a business has even the faintest whiff of profit,

because cashflow keeps the doors of the start-up open. The term itself defines the

relationship between money that comes in and the money that goes out of a

business. You need more coming in than going out obviously, but it is also

important to be sure that money comes in on time so you can pay your overheads

on time. If your overheads are not paid, then you definitely run the risk of losing

money, as your debts accrue. And as debts accrue, you will find yourself facing an

https://igostartup.com/pricing/basic-startup-pack/bs14

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unbeatable wave of stress and pressure as you try to make enough money just to

stay open as a Start-Up.

5. Initial Pricing and IPR issues:

One of the most common causes of new business failures is not having enough

cash to meet expenses, especially in the first 6-12 months of starting. Some of the

initial costs of setting-up a business:

• Set up Cost,

• Investigatory cost,

• Pre-launch cost,

• Professional fees

• Insurance

• Premises costs

• Staffing and employment

• Equipment and supplies

• Stock

• Sales and marketing

• Finance

• Technology costs

And Research expenditures, registration process for Intellectual Property Rights

including legal expenses.

Pricing is another issue for start-up as they cannot compete with established giants

which have a huge cost cut. These new start-ups need to cover all the overheads

which add up to the cost that act as a deterrent to low price.

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6. Environmental factors:

The environment can pose many risks to your business, but climate change is

perhaps the biggest environmental risk. Climate change refers to the build-up of

man-made gases in the atmosphere that trap the sun's heat, causing changes in

global weather patterns. It has environmental, economic and social impacts.

Climate change risks for your business may include:

• frequent extreme weather - you may have increased insurance costs,

more damage to property and resources, and disruption of power and

water. Customers may be unable to visit or contact your business, or

suppliers may be unable to deliver goods or services.

• decreased demand - there may be less demand for your goods and

services if they are not environmentally friendly, or competitors with energy-

efficient products may target your customers. It may also be difficult to

attract and retain staff if your business is not sustainable.

• global impacts - overseas suppliers may be unable to deliver goods or

services due to climate change events in their country or international

customers being encouraged to buy locally.

• increased costs - you may experience higher costs for energy, water and

other resources. Water restrictions may also affect your business.

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COMPLIANCES FOR START-UPS IN INDIA

Compliance is a fundamental component of corporate governance and is integral to

business ethics. In India, for any lapses in compliances, the CEO (management) and

the Board of Directors are culpable. No matter how small or large a company, it is

imperative that they be compliant with the legal framework set forth by the

Government.

Legal compliance is a broad subject and covers multiple areas such as labour,

employment, tax, accounting, industrial, corporate law, environment laws and others.

Regulations and de-regulations in the industry drive the need for constant compliance

and hence demand that adequate compliance constructs and methodologies be put in

place within organisations to fulfill those obligations. Compliance and its importance,

is often overlooked by many Start-Ups which are new to the business ecosystem

simply because they are not aware of the existing laws.

Complying with various regulations in India haunts every Start-Up. In general,

compliance means conforming to a rule, such as a specification, policy and standard

or law. Regulatory compliance describes the goal that organisations aspire to achieve

and the steps taken to comply with relevant laws and regulations.

Due to the increasing number of regulations and the need for operational

transparency, organizations are increasingly adopting the use of consolidated and

harmonized sets of compliance controls. Compliance and its importance are often

overlooked by many Start-Ups new to the business ecosystem simply because they

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are not aware of the existing laws. Ignorance may not be bliss in such cases as it

affects a Start-Up’s viability and attractiveness to a potential investor.

The foremost and pretty crucial thing after the incorporation of a business entity is to

follow up with its compliances. Hence, before we register a company, we should know

whether we would be able to comply with its compliances or not. For this same, we

need to find out the compliances of the business entity we have chosen to register

with. So, before moving forward it’s important to discuss the right type of business

structure.

GST Registration and Compliances

1. Earlier traders had to register under VAT, Manufacturers under excise and

Service providers under Service Tax. Now there is only a single GST registration

for all these persons and input credit can be availed for all the transactions.

Earlier a VAT dealer could not avail ST credit and vice versa. Similarly, a VAT

dealer or a Service provider could not avail Excise Duty credit.

2. Under GST, we are also eligible to avail Input Tax credit on Plant and Machinery

and other assets except Motor vehicles.

3. If you are doing business with B2B costumers, it is advisable to get GST

registration done, even if the Turnover is less than 20 Lakhs. This will enable

the corporate customers to claim input credit on purchase of your

goods/services. However, if your turnover is less than 20 lakhs, you have an

option not to register under GST

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4. Find out the HSN codes/ SAC codes for your products/Services and the rate of

tax applicable to them.

5. If you have multiple business places, in different states, it is mandatory to take

separate registration for each place of business. Stock transfer to different

branches will be a taxable supply under GST.

6. In order to claim input GST credit, make sure that you have a proper GST

invoice from the supplier with GST Number and Rate of tax clearly mentioned

therein. Under GST law, you are eligible to claim credit only if the supplier files

the returns and pays his GST liability. Make sure that he files with details of his

sales with your GST number in his GSTR1. Practically, it would be advisable to

make the payment to supplier only after you receive the input GST credit.

7. If you have both exempt and taxable turnover, maintain proper bifurcation for

each as input credit for exempt sales is not allowed.

8. For Inter-state supply charge IGST and for Intra-state charge, SGST and CGST.

The tax rate, amount and GST number is to be shown clearly on the invoice.

Take the GST number if the customer is registered so that you can pass on the

GST credit.

9. Supply from a Principal to Agent or vice versa is a Taxable supply under GST

10. There are some blocked credits for Rent-a-cab, Purchase of motor vehicles,

payments to clubs, Insurance etc. Do not assume that you can claim credit on

all inputs where GST number is mentioned on the invoice.

11. Normally, GST liability needs to be paid before 20th of the succeeding month.

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12. Accounting Records to maintain for GST ACT-Inward and Outward Register,

Stock Register, Account of Advances, Tax Details Register, Vendors and

Customers Details Register, Details of place of storage of goods, Production

Details Register.

TAN, TDS and Income Tax

TAN is a 10-digit alphanumeric number. Every Assessee who is liable to deduct TDS

is required to apply for TAN. All Companies and Partnership firms are liable to deduct

TDS and remit it to IT department. Individuals are liable to deduct TDS only if they

have to do Tax Audit.

TDS shall be deducted on payments such as salaries, interest, professional fee, rent,

brokerage and commission, dividends.

Salary is one of the main payments where Tax needs to be deducted. Here we need

to compute tax for each employee and deduct on a monthly basis.

Steps to follow:

1. Apply for TAN

2. Check the nature of each payment that you are making. See if they fall under

the TDS purview.

3. Deduct the specified % of TDS and make the payment to the vendor.

4. While doing quarterly filing of TDS returns, mention the correct PAN of the

vendor.

5. In case the vendor doesn't have a PAN, deduct at the flat rate of 20%.

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6. Make TDS payments to the IT department before 7th of next month for all

months except for March, and within 30th April for the month of March.

7. Interest will be levied at 1% for every month or part of a month for delay in

deduction and at 1.5% for every month or part of a month for delay in

remittance after deduction.

8. If the company remains non-compliant regarding TDS provisions, the TDS

amount and interest thereon shall be charged on the assets of the company or

upon the principal officer who is required to deduct and pay TDS;

9. Further, the expenses on which TDS was required to be deducted and paid and

has either not been deducted or paid, such expense shall be disallowed in

computation of total income and taxes thereon.

10. Advance Income tax to be computed and paid periodically on or before the due

dates prescribed.

Annual filing of Income Tax returns on or before due dates

1. Filing of Tax Audit Report. Tax Audit is applicable when the Turnover exceeds

the specified limit as per Section 44AB of the Income Tax Act.

Cash Payments and others

To the maximum extent possible, it is advisable to avoid cash payments. Any cash

payment in excess of INR 10,000 will be disallowed U/s 40A (3).

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If you are making any foreign payments make sure that all compliances are met. It

may require form 15CA/15CB etc. if when paid through credit cards. TDS will also be

attracted and reverse GST also may apply in most of the cases.

Tax Audits

Tax audits are required under Section 44AB of India's Income Tax Act 1961. This

section mandates that those whose business turnover exceeds INR 1 crore and those

working in a profession with gross receipts exceeding INR 50 Lakhs, must have their

accounts audited by an independent chartered accountant. The audit report is made

using Form 3CD along with either Form 3CA or Form 3CB. The provision of tax audits

are applicable to everyone, be it an individual, a partnership firm, a company, or any

other entity. The tax audit report is to be completed by September 30 after the end

of the previous FY.

Category of Taxpayer FY 2016-17 Onwards

Business (Not opting Presumptive Income

Scheme) 1 crores

Professionals (Not opting Presumptive

Income Scheme) 50 Lakhs

Business opting Presumptive Income scheme

u/s 44AD 2 crores

Professionals opting Presumptive Income

scheme u/s 44ADA 50 lakhs

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PF, ESI Act

PF Act applies to every establishment where 20 or more persons are employed. If the

salary of the employee is less than 15000 p.m., PF is mandatory. Approximately 12%

is deducted as contribution from the employee's salary and the same percentage is

contributed by the employer to the fund.

ESI Act applies to factories employing 10 or more persons. Wage ceiling is INR 21000

p.m in the case of ESI. Currently, the employee's contribution rate is 1.75% of the

wages and that of employer's is 4.75% of the wages paid/payable in respect of the

employees in every wage period.

Shops Act

The Shop and Establishment Act in India is promulgated by the state and may slightly

differ from state to state. However, as per the Act, all shops and commercial

establishments operating within each state are covered by the respective Shop &

Establishments Act.

Professional Tax

Professional Tax is a tax levied on professions and trades in India. It is a state-level

tax and has to be compulsorily paid by every member of staff employed in private

companies. The owner of a business is responsible to deduct professional tax from the

salaries of his employees and pay the amount so collected to the appropriate

government department.

Professional tax is usually a slab-amount based on the gross income of the

professional. It is deducted from his income every month. In case of salaried

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employees and wage earners, Employer is liable to deduct professional tax with the

State Government. In case of other class of Individuals, this tax is liable to be paid by

the person himself.

Employee related compliances

1. PAN, Aadhar etc. to be collected from employees.

2. Advisable to open bank account for salary transfer or use an existing account.

Cash payments to be avoided

3. Collect Investment Declaration in the beginning of every financial year and

Investment proof by Feb of each FY. This is for proper computation of TDS and

remittance.

4. Gratuity needs to be paid to the Employee leaves after completion of 5 years

of continuous service.

Specific Compliances w.r.t Private Limited Companies

1. At least 4 Board Meetings to be held in a year. Minutes to be maintained

2. AGM needs to be held every year. Approval of financial statements,

appointment of auditors, declaration of dividends etc. is the main agenda.

3. The Directors are required to inform the Company about their directorship in

other companies every year.

4. There are many annual returns to be filed with the ROC.

E.g.: MG-7, AOC-4, MBP-1, DIR-8, Director's Report

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Each business should also check the compliance requirement under specific

Acts such as Factories Act, Environment and Protection Act, Money Laundering

Act etc.

Accounting, Reporting and Maintenance of Records

It is advisable to maintain monthly accounts in any Accounting software so that all the

required statutory and management reports can be generated. Monthly Profit and Loss

Account, Balance Sheets, Sales and Purchase Reports, Accounts Receivables/Payables

Reports are not only required for statutory compliances but for the management too.

Proper Financial Accounting and Reporting can help the start-ups to understand the

costs involved in each business decision and can help in making critical decisions. It is

advisable to maintain profitability customer wise/Project wise and also for each vertical

separately. These features are available in most of the Accounting software available

currently.

According to section 36(1) of CGST Act every registered person is required to keep

and maintain books of accounts and other records 72 months from the due date of

furnishing the annual return for the year pertaining to such accounts and records.

Under the Income Tax Act, provides that Assessees are required to preserve the

specified books of account for a period of 6 years from the end of the relevant

assessment year, i.e., for a total period of 8 previous years.

As per Sec 128 of the Companies Act 2013, a company is required to maintain its

books of account and vouchers for a period of 8 years immediately preceding the

current year.

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Maintaining physical as well as scanned documentation will help in Audits and for tax

purposes under GST and Income Tax Acts.

How to Comply?

1. Become familiar with your business and the applicable regulations

The basic thing which an entrepreneur must understand is the knowledge of

legislation/Acts that are applicable to his business. There are countless national,

state and foreign regulations which may impact the business immediately or in

the near future.

2. Demonstrate investment of thought and efforts into formulating a

compliance plan

Written policies and procedures should explain the mechanisms for effective

compliance to all your employees and any auditors or regulators. (your compliance

controls will change and improve over time). A Compliance Officer should be

designated (required in some cases) to create a culture of compliance.

3. Document and maintain key compliance related information

Your company should have an appropriate and well-organized record keeping

system (whether hard or soft copy). Documentation should include your written

policies and protocols (including previous and current versions), reports and

communications with authorities, and case files if needed.

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4. Scale your compliance program to be growth-ready

As your business expands to other cities, states, and countries, start reviewing the

agencies and regulations that may impact you. Consider legal counsel to navigate

potentially complex foreign regulations. A new array of risks accompanies cross-

border transactions, whether in the form of money, goods, or information.

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ROLE OF CS

A CS role in a start-up will contain responsibilities well beyond the traditional ones.

1. Preliminary

It would always start with incorporation and drafting the MoA and AoA and issue

of shares et all.

2. Funding

Start-ups go through a series of funding starting from seed capital to first round

and second round, each valuing the company at a different stage. The CS will have

to change the capital structure of the company to accommodate the fluctuating

equity based on the capital or provide a capital structure and options for the

venture capitalists which can work in an optimum manner for both, the promoters

as well as the funding entities.

3. Legal

A start-up will not be expected to have a fully functional secretarial as well as legal

team. Hence, all the legal work, starting from employee contracts to filing returns

and balance sheets, will have to be borne by the CS.

4. Liaising

The CS will have to take care of all administrative functions. Much of it includes

liaising with various entities such as CA’s, valuers, staffers, venture capitalists, IPR

practitioners etc.

5. Strategist

The CS has adequate knowledge of corporate strategies and will have to contribute

towards the business planning at par with the promoters.

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CONCLUSION

In order to put some direct emphasis on the youth entrepreneurship and new job

creation opportunities for the youths, Prime Minister Narendra Modi has announced

the complete action plan of this initiative on 16th of January in 2016. According to this

scheme, companies will be given incentives so that they can generate more

employment.

This initiative provides a facility of incentives for manufacturing units to generate more

jobs. Such initiatives are warm welcomed as they are very necessary to enhance the

economic growth, betterment of people’s lives and making India a developed country.

This initiative will be proved a new dimension to the entrepreneurship and help new

comers in setting up their businesses as well as make a live network of start-ups

through connection. Highly skilled and multi-talented youth of the country will be

completely benefitted through this campaign and able to generate new jobs.