Startups

Startups have become the engine for innovation-fueled economic recovery, reorientation, and growth for nations around the world. Startup20 is the first of its kind official engagement group initiated under the Indian presidency of the G20 2023. The engagement group would act as the voice of the global startup ecosystem bringing together varied stakeholders on a common platform. Startups need a thriving and favorable environment to scale rapidly; policies, frameworks and regulations at the national and international platforms need to keep pace with innovation. The Startup20 Engagement Group would create a global narrative for supporting startups and enabling synergies between startups, corporates, investors, innovation agencies and other key ecosystem stakeholders. Startup20 is an official engagement group, established under the G20 India Presidency 2023. It acts as a dialogue forum with the global startup ecosystem stakeholders and intends to represent the global startup ecosystem to raise the macroeconomic concerns and challenges faced by entrepreneurs with G20 leaders. This would function as any other G20 engagement group, supported by G20 India Sherpa initially along with the Startup20 secretariat. Startup20 will work towards bringing forward key topics for discussion and formulating recommendations against each priority area. Through a consensus-based approach, we will corroborate the final recommendations to the G20 Presidency for discussion at the G20 Summit. We will seek to advance important subjects for discussion and develop recommendations for each priority area using a consensus-based methodology. This will be followed by confirming the final recommendations before submitting them to the G20 Presidency for discussion at the G20 Summit. Startup20 India Startup20 India will operate through Task Forces which are structured to develop key priorities and bring forward the topics in which recommendations would be formulated to support the startup ecosystems globally. Such recommendations would be conveyed through a communique to the G20 India presidency and taken up during the G20 Summit 2023.

Starting a payment gateway company in India involves the following steps: Register a company: Register a company in India as per the Indian Companies Act, 2013. You can choose to register a Private Limited Company or a Limited Liability Partnership (LLP) in India. Obtain necessary licenses and permits: Obtain the necessary licenses and permits from the Reserve Bank of India (RBI) and the Ministry of Finance to operate as a payment gateway service provider. Partner with banks: Partner with banks to facilitate payment processing and enable settlements for merchants. This partnership is necessary to receive payments from various payment methods such as credit cards, debit cards, and net banking. Choose a payment gateway platform: Choose a reliable payment gateway platform that meets your business requirements. You can either build your own payment gateway or use a white-label solution. Develop a website: Develop a website that allows merchants to sign up and use your payment gateway service. The website should be easy to use, secure, and provide necessary information about the payment gateway service. Integrate with e-commerce platforms: Integrate with popular e-commerce platforms such as Shopify, Magento, and WooCommerce to allow merchants to easily use your payment gateway service. Launch and promote your payment gateway: Launch your payment gateway service and promote it to potential merchants through various marketing channels such as social media, email marketing, and paid advertising. Provide excellent customer support: Provide excellent customer support to your merchants to build long-term relationships and ensure customer satisfaction. Ensure compliance with regulations: Ensure compliance with all the regulations and guidelines issued by the RBI and other regulatory bodies. Starting a payment gateway company in India requires a significant investment and expertise in the payment industry. It is important to do proper research and planning before starting a payment gateway company in India.

Services of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  The Department for Promotion of Industry and Internal Trade (DPIIT) has raised, with the finance ministry, issues related to startups’ concerns over the calculation of their fair market valuation, and the Budget proposal to include foreign investors under the ambit of the so-called angel tax that till now applied only to Indian residents.Officials said talks were ongoing with the departments of revenue and economic affairs to address the concerns, as startups raise funds based on their market valuation but that also increases their tax liability. “We are talking to the revenue department and the department of economic affairs. Talks are ongoing,” said an official.Startups are valued at a price higher than the fair market value (FMV) as their investors look at liquidation preferences and other balancing rights.This discussion comes amid declining investment for startups, especially after the collapse of California-based Silicon Valley Bank, which was crucial to the startup ecosystem.As per the latest ‘Tracxn Geo Qu-arterly Report: India Tech Q1 2023’ report, the startup ecosystem in India saw a considerable decline in investment in the first quarter of 2023 compared with the same period in 2018.In the budget 2023-24, the government proposed to include foreign investors under the ambit of the angel tax that was applicable to Indian residents. It will become effective April 1, 2024. Angel tax is levied on unlisted companies when they issue shares at a price that exceeds the FMV. The difference is then taxed at 20% or more.Besides being an additional burden from a regulatory perspective, startups fear that the move will push investors away. Source: Economic Times – 13/04/2023

Union Minister of State (Independent Charge) Science & Technology; Minister of State (Independent Charge) Earth Sciences; MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh said here today that StartUps in India grew 300 times in the last 9 years. Dr Jitendra Singh was speaking at a function at Rashtrapati Bhavan where “National Innovation Awards”, instituted by the Union Ministry of Science & Technology, were presented to “Grassroot Innovators” by the President of India, Droupadi Murmu. The Minister said that there were just around 350 StartUps before 2014, but after Prime Minister Narendra Modi gave the clarion call from the ramparts of the Red Fort in his Independence Day address and rolled out special StartUp scheme in 2016, there has been a quantum jump in StartUps to more than 90,000 with more than 100 Unicorns. Dr Jitendra Singh further added that simultaneously Prime Minister Modi opened up the Space sector for private participation leading to more than 100 StartUps in the Space sector within just about three years. Similarly, Biotech StartUps went up from around 50 to nearly 6,000, he said. Dr Jitendra Singh said that India had no dearth of talent, capability, innovation and creativity in the youth, but they were lacking a favourable milieu and proper patronage from the political leadership which was provided by Prime Minister Modi, and it is also now evident that we have so much of innovative talent even in our rural youth and there is no linkage between formal education degree and innovation capabilities which is evident from the awards given today. He added that this issue was also sought to be addressed by Prime Minister Modi by bringing in National Education Policy 2020 which gives emphasis to skill and not only to the academic degrees and prepares the individual for earning livelihood according to his or her aptitude and skill. The Minister mentioned that the nature of the awards given today and the profile of the awardees proves that a large number of “Grassroot Innovators” are available in India who may not have a very high formal education but who are capable of creating success stories and also generating attractive means of livelihoods for themselves. Dr Jitendra Singh appreciated the efforts of the Department of Science and Technology and National Innovation Foundation (NIF) for organising the “Festival of Innovation & Entrepreneurship” (FINE) and noted that it is a unique effort to promote Science, Technology and Innovation even among those who may not be highly educated in the formal sense or may have not even be science students but who possess inherent talent and inborn aptitude for innovation and entrepreneurship, which also may become a source of livelihood for them. The awards were presented in different categories, namely national level, State level and student category. Two of the recipients today had already been awarded Padma Shri for their innovations. 10 APR 2023 2:40PM by PIB Delhi

Draft ‘Sagarmala Innovation and Start-up Policy’ issued for Stakeholder Consultation Draft Policy aims to harness new technology developed by Indian Start-ups and entrepreneurs PM Narendra Modi termed startups as “backbone” of new India, continuing the same spirit through this policy, MoPSW is taking initiatives to promote start-ups through creativity and innovation: Shri Sarbananda Sonowal 10 APR 2023 4:35PM by PIB Delhi A nation’s growth is augmented by start-ups and entrepreneurs. In order to build a strong innovation ecosystem, the Ministry of Ports, Shipping and Waterways (MoPSW) issued draft on ‘Sagarmala Innovation and Start-up Policy’. This draft policy aims at nurturing start-ups and other entities to co-create the future of India’s growing maritime sector. This entails intensive collaboration of the organizations to build a strong eco-system facilitating innovation and Startups in the country that will drive sustainable growth and generate large scale employment opportunities. This enhances the cooperation and coordination between academic institutions, public sector, private sector and convergence of different schemes and programs to groom fresh ideas and approaches to resolve the issues and challenges to boost up the efficiency in the areas of operation, maintenance, and infrastructure development. Shri Sarbananda Sonowal, Union Minister, MoPSW stated: “the start-up India policy is the brainchild of PM Modi and this is the right step taken by MoPSW to create a strong ecosystem for fostering start-ups and innovation in the nation. This will surely promote innovation and entrepreneurship. Through this policy, MoPSW wants to enable start-ups to grow and prosper through innovations” The designed framework enables the distribution of responsibilities and benefits among the various stakeholders. This is not only limited to the existing stakeholders but also includes upcoming young entrepreneurs with innovative ideas. Draft policy has identified several key areas for the startup to flourish including decarbonization, optimizing processes through data, maritime education, multi-modal transportation, manufacturing, alternate/ advance materials, maritime cybersecurity, smart communication and marine electronics. Details of draft ‘Sagarmala Innovation and Start-up Policy’: Digital Portal based selection of startups ensuring a transparent process Grants to create a minimum viable product/ services (MVP), commercialization of proprietary technology including market entry or scaling up Creation of ‘Launch pads’ at Ports for carrying out trials, facilitating pilot projects, establishing working space and adopting products and solutions Annual Start-up Awards in the maritime sector recognizing distinguished efforts of innovation Organizing Buyer-Seller Meetings and providing Technical Knowledge Support for VCs Guidance to Non Registered Start-ups and Individuals with promising ideas in Maritime Sector including registration of start-up and availing Department for Promotion of Industry and Internal Trade (DPIIT) recognition Regulatory support in Tenders and Sub-contracting Legal and accountancy back up to start-ups for IP-Patent filing, Company registration, annual filings and closures The promotion of start-ups shall be through development of Maritime Innovation Hubs (MIH) which shall perform the following functions: Develop incubators and accelerators with state of the art facilities to cover all aspects of the startup journey from idea to scaled product. Develop centralized repository containing all pertinent information to assist emerging entrepreneurs Attract investment for eligible start-up businesses and innovative maritime technology Entrepreneur development through ‘know-how’ sessions about the various aspects of the maritime industry and launching of innovation focused programs Collaborate with national & international stakeholders for mentorship, knowledge sharing and facilitate access to global subject matter experts, serial entrepreneurs, business leaders, and investors with the potential to get their entry and scaling in the India MoPSW feels proud to share that over the span of 8 successful years of Sagarmala, maritime sector has captured all the possible opportunities for the port-led development. Now, this policy will also create a field to establish a long-term action plans, network, infrastructure, and other resources to build a robust maritime innovation ecosystem.

Venture Capital Funds and Startups There are six different startup funding sources: friends and family, angel investors, an angel investor is a wealthy person who invests his or her own money in a company—usually a start-up—that is in the early stages of development. Angel investors expect to take ownership positions in the companies they support because their capital is unsecured—they have no claim on the company’s assets. venture capital, crowdfunding, debt financing, and grant funding. The six stages of startup financing are pre-seed, seed, series A, series B, series C, and IPO funding. Pre-seed funding, as the name suggests, is an investment round that is secured pre-product market fit and pre-revenue. It comes right at the start of the startup’s life, when the founders are being fueled by great ideas and plenty of coffee, but have yet to start to make inroads in developing the product. Seed funding is for businesses worth three to six million dollars. Series A funding is for businesses worth three to twenty million dollars. Series B funding is for businesses worth ten to thirty million dollars. Series C funding is for businesses worth thirty to one hundred million dollars. The final stage of startup financing is the Initial Public Offering (IPO) Every bull market has fund managers who have not seen abear market. Their views on valuations are not tempered bylessons from the last downturn. They are also driven by FOMO — the fear of missing out.  Such markets also have investors who had missed out on the last rally and are tryingto catch up. These investors buy the stories that fund managers sell — especially when markets are inundated with easy money. So, there is a ring of truth in the words of Infosysco-founder NR Narayana Murthy who recently blamed venture capitalists (VCs) for leading startups up the gardenpath. According to Murthy, VCs push the theory that it’s the ‘topline’ that matters, and not the ‘bottom line’, driving startups to ‘grow at any cost’, making this line of thinking ‘a Ponzi scheme’ in many ways. This sounds like Gordon Gekko ‘Greed is good’ bad stuff. However, this is over simplifying the story. First, both VCs and startup founders may be young, naïve, and people in a hurry. They may be equally hooked to stories that look too good to be true. Second, investors who put a slice of their wealth with VCs are usually the rich and the ultra-rich who, unlike the quintessential small investor, are supposed to have a better understanding of businesses. Third, not all startup stories are the same. For some the operating costs do not keep on rising and profits can grow exponentially beyond a point. In such businesses, scaling up and boosting the topline at the cost of bottom line may be worth the risk compared to a startup whose cost of operation rises with scale. Also, it may be more difficult for VCs (typically bankrolling unlisted companies) to exit freely, leaving the next lot of investors holding the baby. So, the venture capitalist startup story is rarely black and white. And, with higher interest rates drying up easy liquidity, all the actors in the story — VCs, startups and investors — would be more careful on where they bet, and how they spend.