msme sector in india - issues and challenges for msmes (legal and tax related) - part - 24
TRANSCRIPT
Issues and Challenges for MSMEs (Legal and Tax Related)
MSME Sector in India
Part 24
Legal and Tax Related
• Low relevance of IPRs in raising funds- It has been witnessed that majority of the MSMEs are unable to leverage IPRs to raise funding from VCs or Banks in the absence of formal mechanisms for evaluating IPRs.
• Ineffective implementation of legislation on IPRs has adversely impacted innovation- driven MSMEs. In the absence of stringent laws protecting inventions, MSMEs are unable to monetize their innovation, thereby discouraging future innovation in products.
a) Low relevance and innefective implementation of legislation on Intellectual property rights (IPR)
Legal and Tax Related
b) No mechanism for quick revival of viable sick units and speedy shutdown of unviable ones-At present there is no formal mechanism for systematic handling of sick units even though financial assistance by way of debt restructuring for rehabilitation of sick MSE is provided by primary lending institutions.
Legal and Tax Related
c) Bureaucratic hurdles in setting new business-Most SMEs suffer from the setup stage due to systematic problems of bureaucracy at most government agencies/bodies like taxes to labor. The ease of setting up a business index measured for various countries considers this as a major make or break parameter.
Legal and Tax Related
d) Complex labor laws –Labor policies, especially multiplicity of labor laws and procedures for compliance of various labor regulations have added to the woes of the MSME sector.
THANK YOU
Email: [email protected] Call Us: +91 124 4754550
www.resurgentindia.com
Read full report on : http://blog.resurgentindia.com/msmes-sector-in-india/