Grant Thornton-Startups Report
Grant Thornton-Startups Report
Grant Thornton-Startups Report
Foreword
D.S. Rawat
Sunil Kanoria
Secretary General
President
ASSOCHAM
ASSOCHAM
In recent years, the Indian startup ecosystem has taken off and
has matured. Driven by factors such as availability of funding,
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space and a burgeoning demand within the domestic market has led
to the emergence of startups.
The numbers on startups speak volumes about the emergence of
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from 3,100 startups in 2014. The trend is revolutionary! And its
going to change the way the markets are working today in India.
Between 2010 and 2014, the infusion of VC and PE increased from
US$ 13 mn to US$ 1,818 mn. Angel investment too has multiplied
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There are a number of factors that attract foreign investors to India.
However, the biggest factor is the consumer growth backed by
the mobile revolution. Also, the focus of New York based Tiger
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private equity and hedge funds to come to India. Making big
bets on Indian innovation has become a global point of interest.
ASSOCHAM, Indias Apex Chamber for Commerce and Industry,
also popularly known as the Knowledge Chamber, has taken the
initiative of organising the STARTUP INDIA 2016, Annual Meet
of Entrepreneurs & Startups on 20th January, 2016 in New Delhi.
Some of the prominent global Startups such as Uber, Cisco, Gram
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participation at this annual meet.
I would like to thank Grant Thornton to be the Knowledge
Partner for the event, and ASSOCHAM led by Ajay Sharma,
Senior Director for this background paper. I congratulate them for
successfully organising the STARTUP INDIA 2016, Annual Meet
of Entrepreneurs & Startups.
Wishing you a very Happy New Year 2016,
Harish HV
Partner, India Leadership Team, Grant Thornton India LLP and member policy group of Ispirit which engages
actively with Govt. of India, RBI, SEBI etc on startup policy issues.
Grant Thornton India LLP
Contents
1. Introduction
05
2. Evolving definition
a. What is a startup?
b. Stages of the startup lifecycle
06
c. Startup ecosystem
d. Startup financing lifecycle
3. Scope for Growth
a. Policy initiatives
b. Role of large businesses
c. Possible impact of startup incubators
15
21
b. IPR management
25
28
35
8. Industry speak
36
9. Appendix
40
1. Introduction
Prashant Mehra
Partner
Grant Thornton India LLP
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few years for the Indian markets. This has resulted into the
emergence of a number of home grown unicorns across
the country. One of the major contributors leading to this
development has been the mega funding that has been
ploughed into most of these unicorns between the period
2007 and 2015. This has been in line with the global trend
dominating the space. Even the aspiring unicorns have had
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investors is usually considered a tough task. The trends of
investments suggest that investors want to enter as an early
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From an overall viewing, India comes across as a thriving
under-penetrated consumer driven market with a scope
for exponential growth. Internet penetration and its
increasing importance will drive most of the businesses. On
account of the consumer demographics, with China being
out of bounds, India offers the largest pie of investment
opportunity that the world is eyeing. This is despite the
multitude of operational, regulatory and taxation issues
that surround the business running environment in India.
However, 2015 has turned out to be a year offering a bit of
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a great extent. The year also set the tone for the next stage
in the evolution of the startup ecosystem. The maturity in
decision making that should ideally come in at this stage
would be a step in the right direction taking the startup
space in India towards greater heights, as it deserves.
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a. What is a startup?
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subjectivity and complexity involved. Considering various parameters pertaining to any
business such as the stage of their lifecycle, the amount and level of funding achieved, the
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available in the public domain. These have been sourced and enumerated below to provide
an indicative understanding on the space to the reader. The Department of Industrial
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expected to make it public in due course.
What is a startup
Definitions of startups
A startup business is defined as an organisation:
Source: NASSCOM Startup India report 2015, Secondary sources, New articles
Discovery
Identify a potential scalable
product/service idea for a
big enough target market
Maintenance
Maximising benefits and facing
problems derived from the global
dimension that the business has
achieved
Validation
The service or product
discovered hits the market,
looking for the first clients
ready to pay for it
PRE-STARTUP
Sale or Renewal
The decision to sell the startup to
a giant or acquire huge resources
that the brand will need to continue
growing
STARTUP
GROWTH
Efficiency
The entrepreneur begins to define
his/her business model and looks for
ways to increase customer base
Scale
Pushing the growth of the business
aggressively while increasing its
capacity to grow in a sustainable
manner
c. Startup ecosystem
Support
organisations
Big
companies
Research
organisations
Univ
Un
Universities
iver
iv
ersi
er
siti
si
ties
ti
es
Service
providers
Startup
Ecosystem
Funding
organisations
Introduction
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Funding by
Angel investors/
Seed funds
Venture
capital
Public
markets
en
t
Seed funds
le
Risk
Concept
Startup
Growth
Sa
Grants
In
ve
st
Angels
Expansion
Managing
Business
Performance
Process
and System
Development
Strategy and
Organisation
Working Capital Management
Business partnering
Operational process
Financial management
Database management
Financial design
Introduction
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US ranks number one on the list with 83,000+ startups.
Canada
6,100+
US
UK
7,900+
India
10,000+
83,000+
China
10,000+
Total startups
10,000
(approx.)
Startups
% Share
4,300 | 5,700
43% | 57%
800 | N.A
Sector concentration
E-commerce - 33%
B2B - 24%
Consumer internet - 12%
Mobile apps - 10%
SaaS - 8%
Other 13%
Engineering - 17%
Construction- 13%
Agri products- 11%
Textile - 8%
Printing & packaging 8%
Transport & logistics - 6%
Outsourcing & support 5%
Other 32%
Note: Non-tech based startups sector concentration is an outcome of a survey conducted by CRISIL on ~20% sample of micro, small, and medium enterprises 2013-14
Source: NASSCOM Startup India report 2015, Microsoft Ventures, Secondary sources, News article
Introduction
3rd Largest
9%
9% of total startup
founders are women
28 Yrs.
Average age of startup
founders is 28 Yrs.
800 to 2,000
Average no. of new tech startups
have moved from 480 in 2010
to 800 in 2015. Expected to
increase to 2,000 in 2020
4,300
4
,300 tto
o1
11,500
1,500
Total
Tota
To
tall Te
ta
Tech
ch ssta
startups
tart
ta
rtup
rt
upss ar
up
are
e ex
expe
expected
pect
pe
cted
ct
ed tto
o in
incr
increase
crea
cr
ease
ea
se
to 1
11,
1,50
1,
500
50
0 in 2
202
020
02
0 fr
from
om 4
4,3
,300
,3
00 iinn 20
2015
15
11,500
2020
4,300
40%
The number of incubators
has grown by 40% to
110 during 2014-15
Metro cities
50% (approx.)
43% (approx.)
60% (approx.)
Complex
Comple
Com
plexx tax
ple
tax
environment
enviro
env
ironme
iro
nment
nme
nt
Double
The number of PE/VC firms have
doubled in the last 12 months
Source: NASSCOM Startup India report 2015, Startup India-Momentous Rise of the Indian Startup Ecosystem, CII report on a snapshot of Indias Startup Ecosystem,
Secondary sources, News article
Startups India - An Overview | 13
India comparison
India
China
Israel
Singapore
Japan
US
10,000
10,000
4,750
N.A.
N.A.
83,000
Tech-based
startups
4,300
3,400
4,000
N.A.
N.A.
48,500
Non-tech based
startups
5,700
6,600
750
N.A.
N.A.
34,500
Set up a new
business (Days)
30 60
30
13
10
34%
25%
26%
34%
39%
33
TBD
TBD
TBD
11
10.3%
5.6%
3.9%
5.4%
1.2%
3.3%
R&D spending
% of GDP (Est.
2014)
0.85%
1.90%
4.20%
n/a
3.40
2.80%
Total no. of
startups (approx.)
Corporate tax
rate
No. of Tax
payments by
businesses (p.a.)
In September 2014, Prime Minister Narendra Modi introduced a big initiative Make in India to
promote the manufacturing sector by promoting companies to invest in the sector. The intent of the
campaign is to attract foreign investments and encourage domestic companies to participate in the
manufacturing thereby contributing to the growth story. The government also took various steps to build
a favourable environment to do business in the country. For example, an online system for environment
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been put in place.
1. The government increase the foreign Direct Investment limits for most of the sectors
2. Protection of the intellectual property rights of innovators and creators by upgrading infrastructure,
and using state-of-the-art technology
Standup India
The Prime Minister also aims to build systems for enabling startups and wants to make the country as a number
one destination for startups. In August 2015, he announced a new campaign Standup India to help startups
with bank funding and encourage entrepreneurship among the young Indians. He also requested all 1.25 lakh
bank branches to fund at least one startup founded by tribals and dalits.
Standup India: On 6th January 2016, the Union Cabinet has given approval to Standup India campaign which
aimed at promoting entrepreneurship among women and scheduled castes and tribes. Some of the salient
features include:
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Intention of the scheme is to facilitate at least two such projects per bank branch,
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It also plans to ease out the existing regulatory regime for startups and is considering extending tax incentives
to them. The Department of Industrial Policy and Promotion (DIPP) is currently working around a clear
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Digital India
This is an initiative led by the Indian government to ensure that government services are made available
to every citizen through online platform. In July 2015, the PM announced the Digital India initiative that
aims to connect rural areas by developing their digital infrastructure. This translates into a huge business
opportunity for startups. E-Commerce companies in India are planning to break into Indias rural market
as a part of the governments Digital India initiative.
In September 2015, PM Modi visited Silicon Valley, US and had meetings with a number of founders of
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of developing a better startup ecosystem
According to NASSCOM startup report 2015, every year more than 800 tech startups are being set up
in India. By 2020, a projected 11,500 tech-startups are going to emerge and will employ around 250,000
people.
Source: NASSCOM Startup India report 2015 Secondary sources, New articles
Financial assistance
In his Union Budget speech for 2015-16, Finance Minister Arun Jaitley announced governments plan to set up
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capital of INR 20,000 cr and INR 3,000 cr.
In April 2015, the government launched Mudra Bank to boost the growth of small businesses and
manufacturing units
- The newly Bank would provide a credit facility of up to INR 50,000 to small businesses, loan of up to
INR 5 lakh to little bigger businesses and loan of up to INR 10 lakh to the MSME sector
MUDRA Scheme: On 6th January 2016, the Union Cabinet has given approval to the following proposals:
The cabinet has approved the creation of a Credit Guarantee Fund for MUDRA loans
- It is expected that the fund will guarantee loans of over INR 1,00,000 cr to micro and small businesses in
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- $FFRUGLQJWRWKHQDQFHPLQLVWHUWKH081'5$VFKHPHLVH[SHFWHGWRSURYLGHEHQHWVWRFUSHRSOH
- The fund will guaranteeing loans sanctioned under Pradhan Mantri Mudra Yojana w.e.f. 08th April15
The cabinet also given its go ahead to convert MUDRA Ltd. into MUDRA Small Industries Development
Bank of India (SIDBI) Bank as a wholly owned subsidiary of SIDBI
Additionally, the government has set a target to provide a total loan of INR 1.22 Lakh cr. to promote new
entrepreneurs and fund the unfunded businesses with the help of banks
India Aspiration Fund:7KHQDQFHPLQLVWHUDOVRDQQRXQFHGWKH,QGLD$VSLUDWLRQ)XQGWRHQFRXUDJHWKH
startup ecosystem and allocated INR 400 cr. to various venture funds. He also launched another program
called SMILE (SIDBI Make in India Loan for Small Enterprises) with an allocation of INR 10,000 cr. The
objective of the scheme is to offer soft loans in the form of quasi-equity and term loans on soft terms to
MSMEs.
Startup Exchange
The SEBI announced a new set of listing norms for startups, including e-Commerce ventures, planning
to raise funding from listing on stock exchanges. These new norms will provide relaxations in disclosure
related requirements, takeover and Alternative Investment Fund regulations for IT, data analytics,
intellectual property, bio-technology or nano-technology companies.
The government is planning to set up a mechanism called SETU, under the newly formed NITI Aayog,
to provide technical assistance and incubation to startups. In 2015 Union Budget, Finance Minister, Arun
Jaitley, has set aside INR 1,000 crore for support startups.
Source: NASSCOM Startup India report 2015 Secondary sources, New articles
16 | Startups India - An Overview
Growth
Big corporates generally focuses on innovation, performance excellence and risk management in order to compete in the
dynamic global business environment. Issues related to tightening of research and development budgets, increasing digital
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Rising number of corporates are looking in search of diverse information, creative people
and processes at the smaller companies or star-ups:
Many corporates are now shifting their focus from investments into their own research
and development to investments in multiple source of innovation, focusing in particular on
technology based startups
- Nandan Nilekani is investing US$ 1-2 mn in startups in many sectors including telecom,
aerospace, publishing, logistics etc.
- Ratan Tata recently invested an undisclosed sum in Tracxn, a Bengaluru-based startup
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partially to access to their pool of talent, assets and capabilities.
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fewer approvals required to develop innovative products.
Startups in India have managed to get funding from various informal channels including
corporate, angel/seed or VC funding. There are a few startups with innovative business ideas
which have managed to raise funds through Crowdfunding, where a large number of
investors contribute capital through various channels including internet, mail-orders, events
etc. For example, startups such as Ketto, BitGiving and Wishberry have raised money through
this concept. Over the recent years, Crowdfunding as a concept has gained popularity
globally, however, in India, it is still at a nascent stage and is expected to pick up as a regular
funding channel with the increase in awareness.
Source: NASSCOM Startup India report 2015, Secondary sources, News articles
Startup incubators are companies that assist new startups in their initial phase of development by providing
various services. Incubators share both tangible and intangible resources such as equipment, office space,
services such as accounting, computing and legal services. They also assist startups in raising startup capital
and perform various networking activities to reduce the financial burdens and resource issue. Incubators
help entrepreneurs in building sustainable business environment while benefitting the broader corporate
communities.
According to NASSOCM report, there is a 40 percent growth in the number of incubators to reach to
approximately 110 in 2015 as against around 80 in 2014.
Approximately 50 percent of total incubators are set up in non-metro cities i.e. outside NCR, Bengaluru and
Mumbai to offer.
Growing number of educational institutes have started setting up incubator programmes independently or jointly.
Shri Ram College of Commerce, New Delhi for example has set an incubator to help their student in their own
starups, VESIT college of engineering has set up an incubation centre with the same objective.
Big corporates are also setting up incubator programmes to help startups. Tata Group launched T-Hub, Google,
Microsoft Ventures etc.
Tata has come up with countrys largest technology incubator centre T-Hub in Hyderabad
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Indonesia with training and developmental support and upto US$ 50,000 in equity-free funding
Y-Combinator, a popular incubator in the San Francisco Bay Area has designs to make investments in India in the
near future.
3 Yrs.
5 Yrs.
8 Yrs.
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investments into companies:
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Not a part of big corporates
Investment amount <US$ 20 mn
Family and
friends
Angel/Seed
funds/VC/PE
Early stage
Growth stage
VC/PE/
Banks
Public
market/PE
Growth Stage:
Growth
2,213
700
600
2,000
500
1,500
400
903
1,000
300
200
231
304
345
2011
2012
2013
2014
2015
500
Volume
100
0
Average Investment
Sizes (US$ mn)
Volume
800
250
679
700
200
568
600
654
500
150
400
322
268
300
200
100
64
93
70
Q2
2013
Q3
2013
118
139
Q4
2013
Q1
2014
312
100
Volume
Value US$ mn
2,500
174
50
-
Q1
2013
Q2
2014
Value
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Volume
Note: The criteria used to define startups include: a) The Company should have been incorporated for three or less than three years as at the end of that particular year.
b) The Company is a player in a non-traditional service industry c) The Company has received funding only upto Series B
Source: Grant Thornton Analysis
Prime Minister Narendra Modi plans to bring an online approval window which will provide over 200
permits required by different industries from various government divisions
This new system for clearance approval for new entrepreneurs would allow them to apply for and track
the status of their applications/license permits online
Currently, 81 state-level clearances, including land acquisition, setting up a factory are being digitised
133 clearances that are being granted by other central government divisions, including the home,
defence and railway ministry, will come online
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LQWURGXFWLRQRIPRELOHSKRQHVFKDQQHO
The Prime Minister aims to bring India ranking on the ease of doing business to 50 from the current
ranking of 142 on the World Banks index, and is working on to simplifying business processes and
regulations
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from a 22 federal rules and regulations such as:
Proposal includes exemption from company and labour laws until a startups revenue touches to certain
level,
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Easing norms for raising capital globally.
4. Challenges
World Banks Report: Doing Business 2016
India is ranked 130th out of 189 economies on the ease of doing business, 133rd on the ease of trading across borders and
157th on the ease of paying taxes.
India is ranked 155th in case of starting a business
On an average, Indian businesses need to make 33 tax payments annually with around 243 hours spent to prepare and pay
taxes in a year
In contrast, China requires just nine tax payments annually, while the US doesnt trouble its taxpayers more than 11 times
annually for tax payments
Among South Asian economies, India made the biggest improvement in business regulation, increasing its distance to
frontier score
Sustainability
Technology
Financial
Regulatory
Culture and
Awareness
Social
The Indian culture has conditioned people to look down upon failure. For failures, opinions do come by but encouragement rarely so.
Entrepreneurship is often about failing and learning from those failures and starting all over again. People need to start accepting failures and
allow second chances.
Most common questions for anyone to become an entrepreneur
- What to do: problem related to creating a business idea, finding business opportunity or having a vision
- Why to do: issues related to reward/incentive analysis, risk evaluation or any other benefits
- How to do: issues related to legalities and requirements such as clearances, licenses, approvals required. Issues related to resource
availability including finances, technology and manpower supply
Most people think that having a domain name, setting up a website, moving to social media are complex, costly and time consuming
People are conscious about risk and rewards, and India is referred to as a price sensitive market
People at large are unaware about how can they contribute to economic growth, generate employment, contribute to social development.
Social Issues
Mentorship/Guidance: Most founders of failed startups feel that the lack of proper guidance and mentorship is a major reason behind their
failure. An important factor behind failures and slow growth of some organisations is the lack of quality mentorship, especially in terms of
industry knowledge/support.
Market structure: Indian markets are largely unorganised and fragmented that create a roadblock for a startup to succeed
Consumer behaviour: Behaviour of Indian consumer changes in every 30-50km that makes it really difficult for a startup to create business or
market strategy for their products or services. Most startups generally get stuck in stagnancy and gradually shut down.
Location: An important problem faced by startups is related to location of their business. India is a place of varied culture and taste and thus
every product might not be welcomed equally in every region.
Technology
Technology infrastructure
- Appropriate IT-infrastructure has become a need for Indian businesses given the growing number of consumers online
- It is absolutely vital for new startups to train their employees for handling critical customer information such as that of credit card numbers
and related data
Cyber security
- Most startups have a B2B business model. This is where cyber risk may rise as they are not aware of potential risks that might exist for their
startup business
- No back-up plan to keep the startup company running when an accident destroys some key equipment in their data centre.
Challenges
Financial Issues
Operational finance:
- Most startups are self/family funded with limited workforce which makes it difficult to maintain records both financial and operational.
- Flawed business models and lack of innovative revenue strategies have led to the failure of many startups and they are forced to shut down
operations
- Overcoming unnecessary business steps to manage business operations
Funding/Capital Deficiencies:
- Capital and access to capital has been a perennial problem for startups
- Government and private sector investors have set aside funds through investment channels but they are not available for all forms of
business. The biggest problem for such organisations has been to attract investors and gain their trust with regard to their mode of
operations
- In the initial phase of operations, startups do not get funding from banks given no credit history of the firm. In addition, there is limited
number of credit rating firms for small and medium sized enterprise.
- Despite having raised good investments, startups struggle to survive the competition. Startups are unable to mitigate the gap between burn
rate and revenue.
Cash flow management
- Effective cash management is an important factor to achieve objectives both short term and long term. Cash is still a preferred option for
payments owing to the fact that electronic payment has not achieved complete penetration to Tier 2 and Tier 3 cities
- Gap between burn rate and revenue: Given rising competition from peers both from big as well as small, it becomes imperative for startups
to scale up the business and require external funding for the sustainability/growth in the market.
- Evolution on the basis of funding: Mega funding and mega announcements have become a thing of the past, post consolidation on a large
scale across the sector over the alst few years. Both the investor and the entrepreneur are now more consciously focussing on innovation,
capital efficiency and client/customer satisfaction, a view which is bound to impact the funding scenario hence-forth.
Sustainability Issues
The level of knowledge that business advisers have about ecological issues and their willingness to discuss this with their clients is important in
creating business ventures.
Lack of information - provision of more information directly to business founders could help in the adoption of more sustainable business
practices.
Not aware of potential that might exist for their startup business.
Role of public funding in promoting sustainable enterprises is often overlooked.
Regulatory Issues
Multi window clearances: Budding entrepreneurs have to make multiple trips to government offices to register and seek clearances. Urgent
need to scrap multiple regulatory clearances
Taxation issue:
- Taxes like octroi, VAT, excise create problems for entrepreneurs while starting up a business. NASSCOM has batted for the exemption of both
direct and indirect taxes for all startups in India
- Taxation is a barrier for technology adoption and proves to be an immense hurdle for budding entrepreneurs
- With taxation out of the way, startups will be able to stem the cash outflow
b. IPR management
Protection
Creation
Intellectual
Property
Application
Evaluation
Commercial evaluation
and viability of the
intellectual property
in context of global
competition
Ministry of
Corporate
Affairs
Environmental and
pollution-related
clearances
Ministry of
Environment
and Forests
Product-specific clearances are required based on the industry sector under which the product falls.
Approvals are given by the respective Central/State Ministry/Department.
The process
S.No.
Procedure
Offices involved
Ministry of Corporate
Affairs (MCA)
100
MCA
1,500
Registrar of Companies
(ROC)
500
NSDL/Authorised Agents/
UTI Investors Services Ltd
67
57
State/Municipal office
uptp 6,500
10
State wise
11
12
EPFO
13
Regional office of
the Employees State
Insurance Corporation
Completion
time (days)
12
Cost
5,100
No cost
12
No cost
No cost
There are a number of statutory requirement that a company needs to follow to run a business under various laws such as
direct tax, indirect tax, Company Law, Fema, etc..
Direct Tax
Indirect Tax
Goods and Service Tax (GST): The Government of India has proposed that the indirect tax regime in India be replaced with a
comprehensive dual GST, to be levied concurrently by the Centre (CGST) and the States (SGST). Integrated GST (IGST) is also
proposed to be levied, which will replace CST. It aims to tax both goods and services traversing between states. The following
key taxes are proposed to be included in GST.
Foreign Exchange Management Act (FEMA): FEMA is a regulatory mechanism that enables the Reserve Bank of India and the
Central Government to pass regulations and rules relating to foreign exchange in tune with the Foreign Trade policy of India. In
indicative submission details has been highlighted in the Appendix.
Secretarial Compliance: An entity has to comply with a number of regulatory norms, which has been indicated in the Appendix.
2,500
601
2,000
600
500
1,500
400
903
1,000
300
192
500
-
2011
100
117
95
54
200
345
304
231
Volume
700
2,213
0
2012
2013
Value (US$ mn)
2014
2015
Volume
Methodology and Disclaimer: The deal data for this report has been sourced from Grant Thorntons Dealtracker report. This report includes views from experts. Please
note that the views of the experts are personal and may not necessarily reflect the views of the organisation. The criteria used to define start-ups include: a) The Company
should have been incorporated for three or less than three years as at the end of that particular year. b) The Company is a player in a non-traditional service industry c) The
Company has received funding only up to Series B.
Deals have been classified by sectors and by funding stages based on certain assumptions, wherever necessary.
250
800
654
200
568
600
150
400
322
200
-
64
93
Q1
2013
Q2
2013
70
Q3
2013
118
139
Q4
2013
Q1
2014
268
312
100
Volume
679
174
50
Q2
2014
Value
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Volume
Geographies 2011-2015
The start up ecosystem continues to be concentrated in regions like NCR, Bangalore and Mumbai which together contribute
to 87% of total investment value and 84% of total investment volume in 2015.
The national capital region (NCR) witnessed the highest investment activity which gradually increased from 15 investments
in 2011 to above 200 investments in 2015. As compared to 2014 which witnessed investment activity of US$ 245 mn
(across 52 deals), this year showed a 300% increase with investments of US$ 972 mn (across 204 deals). Key start-ups that
witnessed investments in 2015, in this region include Ecom Express (ECom Logistics), Foodpanda (FoodTech), Peppertap
(Hyperlocal), Rivigo (Ecom Logistics) and UrbanClap (On-demand services). NCR contributes to 27 % of the total value
and volume of investments in 2014 where as in 2015 NCR contributed to 44 % of the total value and 34% of the total
volume of investments.
Investment activities have also been on the rise in the IT hub of the country Bangalore, where investment values in 2015
have grown by over 160% y-o-y. While the number of transactions have been fairly high (59 deals in 2014 and 171 deals
in 2015) investment values have been at US$ 596 mn due to the absence of any big-ticket investments (above US$ 100 mn).
Key start-ups that attracted investor attention in 2015 from this region include Little Internet (Discovery platform), Portea
Medical (Consumer HealthTech), Blackbuck (Ecom Logistics), HouseJoy (On-demand services) and Swiggy (Food Tech).
Bangalore contributes to 25 % of the total value and 31% of the total volume of deals in 2014 where as in 2015 Bangalore
contributed to 27% of the total value and 28% of the total deal volumes.
Geographic Break-up Values (US$ mn)
2,500
600
2,000
500
400
1,500
300
1,000
200
500
100
0
2011
2012
2013
2014
2015
2011
2012
Value US$ mn
NCR
Bangalore
Mumbai
Chennai
2013
2014
2015
Volume
Pune
Others
NCR
Bangalore
Mumbai
Chennai
Pune
Others
0XPEDLKDVDOVRVHHQVLJQLFDQWWUDFWLRQLQWKHLQYHVWPHQWDFWLYLW\LQ0XPEDLZKHUHLQYHVWPHQWYROXPHVJUHZE\
almost 200% y-o-y to about 130 investments in 2015. Growth in investment value to US$ 366 mn in 2015 from US$ 253
in 2014, however, was not as substantial (45% y-o-y) as growth in volumes. In 2015, the city witnessed much fewer bigticket transactions compared to the other regions with the top companies like Culture Machine (US$ 18 mn), TinyOwl
86}}PQ&UHG586PQ*24LL86PQDQG&RYHUIR[86PQUHFHLYLQJLQYHVWPHQWVRIOHVVWKDQ
86}PQHDFK0XPEDLFRQWULEXWHGWRRIWKHWRWDOYDOXHDQGRIWKHWRWDOYROXPHRIGHDOVLQZKHUHDVLQ
2015 Mumbai contributed to 17 % of the total value and 21% of the total volume of deals
2015 witnessed renewed traction in upcoming regions like Chennai, Pune, Jaipur (Major deals in these geographies across
WKHODVWYH\HDUVLQFOXGH1HWPHGV&KHQQDL86PQLQ=R5RRPV-RGKSXU86PQLQ9HOR&ORXG
Chennai (US$ 21mn in 2014), Allygrow Pune (US$ 20 mn in 2015) and Arkin Net Inc- Pune (US$ 15 mn in 2015).
City
Investor
Investee
Startup Sector
Startup Sub
Sector
2015
Gurgaon
Warburg Pincus
Logistics
Ecom Logistics
132.70
2015
Gurgaon
Pisces EServices
Private Limited Foodpanda.com
Consumer
Food Tech
110.00
2015
Gurgaon
Pisces EServices
Private Limited Foodpanda.com
Consumer
Food Tech
100.00
2014
Mumbai
SoftBank Corp
Consumer
Real Estate
90.00
2014
Kanpur
Hike Technologies
Private Limited
Consumer
65.00
2014
Gurgaon
Pisces EServices
Private Limited Foodpanda.com
Consumer
Food Tech
60.00
2015
Bangalore
Consumer
Discovery
platforms
50.00
2015
Chennai
Net-Meds
Marketplace Pvt
Ltd- Netmeds.com
Health
Consumer Health
Tech
50.00
2011
Bangalore
Happiest Minds
Technologies Pvt
Ltd
Enterprise
Infrastructure
Data Analytics,
Management and
Infrastructure
45.0
2011
Gurgaon
Consumer
Retail
40.0
Investee
City
B2B/B2C Startup
Sector
Startup Sub
Sector
Warburg Pincus
Gurgaon
B2B
Logistics
Ecom
Logistics
132.70
B2C
Consumer
Food Tech
110.00
B2C
Consumer
Food Tech
100.00
Bangalore
B2C
Consumer
Discovery
platforms
50.00
Chennai
B2C
Health
Consumer
Health Tech
50.00
Bangalore
B2C
Health
Consumer
Health Tech
37.50
Gurgaon
B2C
Consumer
Hyperlocal
Delivery
36.00
Jodhpur
B2C
Consumer
Travel &
Transport
30.00
SAIF Partners
Gurgaon
B2B
Logistics
Ecom
Logistics
30.00
Delhi
B2C
Consumer
On-demand
services
25.00
Investment Value
in US$ mn
400
100
300
80
60
200
40
100
0
Volume
Value US$ mn
20
Food Tech
Retail
Travel &
Consumer Real Estate Media &
Education
Transport Health Tech
Entertainment
Tech
Value (US$ mn)
B2C verticals that have had the maximum traction are food
tech, on demand & hyperlocal services, discovery platforms
and retail and accounted for around 50% of the total
LQYHVWPHQWRZLQWKHFRQVXPHUVWDUWXSVSDFHLQ
Foodtech: Transactions in foodtech was dominated
primarily by Foodpanda (restaurant aggregator) which
had two back to back rounds of funding (cumulatively
86}}PQLQ
Several food tech companies (which were startups) like
7LQ\RZO=RPDWR'D]R6SRRQMR\HWFKDGWRGRZQVL]H
in 2015 which brings concerns over sustainability and
scalability of such companies going forward.
Ondemand & Hyperlocal services -There were about 64
companies in the on demand/hyperlocal vertical which got
investments amounting to more than US$ 200 mn. Some of
the top deals in this space include Peppertap, Urbanclap,
Housejoy, and Opinio which accounted for around 50%
of the total investment value. This segment is attracting
increased focus with even Mr. Ratan Tata showing interest in
this space with his recent investment in Urbanclap.
Apps and
Tech
Others
Volume
'LVFRYHU\3ODWIRUPV,QWKLVVSDFHKDVVHHQVLJQLFDQW
investment activity of over US$ 200 mn spread across 66
investments. This segment primarily helps users identify
buyers and sellers of various products and services. Key
investments in this segment include Little Internet, Droom
and Roposo which accounted for over 36% of total
investments in 2015.
In the B2C space one will also need to watch out for
the ambiguity around FDI & tax laws and its impact
going forward Focus in the consumer space will shift
WRVFDODELOLW\SURWDELOLW\RSHUDWLRQDOPHWULFVFRVWRI
consumer acquisition etc.
M&A Activity continues to rise in this space in 2015 with
Alibaba acquiring stake in Paytm, OlaCabs acquisition
of TaxiFor sure, Jaspers acquisition of Freecharge.com,
=RPDWRpVDFTXLVLWLRQRI,$&8UEDQVSRRQHWF
The B2B segment witnessed increased activity in key
verticals like Logistics, Enterprise Applications and
Enterprise Infrastructure.
,QGLDpVWRSHFRPPHUFHUPVOLNH6QDSGHDO)OLSNDUW3D\WP
are preparing for entry into the hyperlocal delivery space
ZKLFKZLOOVLJQLFDQWO\LPSDFWWKHVPDOOHUSOD\HUVLQWKLV
space.
Funding Patterns
Of the total 600 starts up in 2015, more than are 450 have
received seed/angel funding and the others have received
either series A/Series B.
Not many startups get more than US$ 50 mn (up to
the Series B funding)investment in India, in 2015, only
4 startsup companies (Foodpanda, Ecomexpress, Little
Internet, Netmeds) have received a funding above
86}}PQ
We observed angel/seed rounds to be as low as US$ 10000
and they went up to US$ 5-6 mn.Series A ranges between
US$ 1 mn and US$ 50 mn while Series B ranges between
US$ 3 mn to more than US$ 100 mn.
2025
10,000
1,00,000
Employment generation
(000)
n/a
3,500
Expected contribution
(US$ b)
n/a
500
Aims to be No. 1
Driving factors
An emerging economy
Young population
Rise in discretionary
spending
Urbanisation
Focus on standard of
living
Challenges for startups
Government Initiatives
(including upcoming)
Lack of awareness
Unorganised market
Multiple clearance
requirement
Multi-tax existence
(Octroi, VAT, Excise, ST
etc.)
Technological risk
Startup Ecosystem
Tax exemption
Focused sectors
Digital India
MUDRA Bank
Awareness initiatives
Setting of SETU
Setting up incubators
Corruption/red tape
Lack of mentoring
Key steps proposed to change the dynamics for the startup space
Infrastructure support
Financial support
Mentoring
Incubator support
8. Industry speak
Government launched initiative that is conducive for startups or there is need for a new initiative:
I am not sure much about startup initiative by government but I feel there is a need for training for budding entrepreneurs. I could not find any
initiative from government which offers basic knowledge of entrepreneurship, about policies of government, finance, taxations, compliance and
jargons used in industry.
Amit Gupta, CEO, NCR Eduservices Pvt. Ltd
Subsidy reforms (JAAM trinity), campaigns such as Digital India, Make in India, setting up of the National Skill Development Corporation (NSDC)
and the more recent fund the unfunded initiatives of Startup India, Standup India are great initiatives that will go a long way in creation of a larger
customer base, improve vocational skill sets, promote digital adoption and provide accessible capital to boost our startup Eco System. Startups
could benefit with tax reforms and exemptions, simpler business licensing and single a transparent regulator to meet their needs.
Rashmi Guptey, Principal (Legal), Lightbox India Advisors Private Limited
The Make in India initiative has laid renewed new emphasis on the core sector and on fostering true innovation. Probably, the government could
work in tandem with startups on projects which might be beneficial to both parties.
Kae Capital
An initiative was in the form of launching the India Aspiration Fund - a Fund of Funds vehicle to provide capital to the startup ecosystem. Another
encouraging change has been the automatic route for FDI allowed to AIF 1 vehicles, which will enable an easier flow of foreign money into the
startups. The government has shown the intent to make the processes less cumbersome. Prime Minister Narendra Modi seems to be directly
involved in the same - initiatives such as Startup India and Make in India show that the PMO is taking an active interest in the same.
Vikram Gupta, Managing Partner, IvyCap Ventures
The Modi Government has rolled up its sleeves to make INDIA stand out in this booming startup world, though late but definitely they are doing
there bit. The upcoming Startup INDIA initiative is a live example with investors, founders and stakeholders flying down for the event. However,
government should see its role as a catalyst of change and not a driver of change. It should look at create an enabling environment that creates
an ecosystem of taking risks rather than averting risks. The iCreate institution by Government of Gujarat is doing wonderful job by incubating many
startups at its centre and assisting lot others by its mentoring programmes.
Vinay Jain, Co-Founder, FabStorey.com
Too early to make a judgement here. Initiatives are just about getting started.
Arvind Pani, Reverie Language Technologies Pvt. Ltd
This year government is launching its ambitious Startup India initiative which is a clear indication that government is recognising the importance of
startups.
Adarsh Somashekar, Director, Ovum Hospitals
Over the last few years, the startup industry has witnessed a huge growth in the country. The Prime Ministers Startup India campaign is a great
initiative to boost entrepreneurship in India. This initiative will play a very important role in further facilitating startups and provide a new dimension
to entrepreneurship in the country. In order to create an environment that is conducive for growth of startups, the government should enable of
regulatory compliance in the country. Single door for all the regulatory requirements will ease a lot.
Vikas Jain, TheCabwala.com
The startup environment boom is limited to two locations Bangalore and Gurgaon. This should spread out. The government can encourage this
by having startup events organised in other large cities of India such as Pune. Jaipur. Cochin, Kolkata, Lucknow etc. This will provide exposure to
local entrepreneurs. The startup environment boom is also limited mostly to consumer technology and there is enough venture capital funds chasing
them. This boom again should spread out. This can be done by instituting startup awards in some sectors such as Medtech and Biotech. Also
National Centres of Excellence should have startup incubators for these specific segments.
Fresh Menu
Startup ecosystems around the world are in different stages - early, developing and developed. India already has a startup ecosystem with two
amazing features - tremendous potential because of market size and lack of developed services and rapid increase in people attempting startups.
Initiatives of the government should be to ease peoples effort to launch startups from their ideas. For this the most important aspects are the
following:
a. Ease of starting, selling and shutting down of business
b. Easy availability of seed capital
Initiatives such as THub and Startup Village are commendable. Governments efforts to make available seed capital to startups from IIT students has
resulted in spawning a number of successful startups - this can be made available to a wider section of deserving population. Kerala government
(KSSEDM) and Karnataka government, as I know have made some attempts in similar lines. The steps have been lauded. However, there is a need
to make an extra effort to obtain good utilisation of the money reserved for these activities.
Shameel Abdulla, Co-founder & CEO, Jiffstore
Impact of ease of doing business strategy initiated by the government last year:
While it may take some time for the changes to permeate in the system, I think the more immediate changes can be experienced by the startups.
Today, even the processes for formation and winding up of companies are quite tedious. The government seems to be actively working out
measures to address these gaps. It may take a while for these efforts to bear fruit, but the intent is there in the right direction. Excessive and longdrawn processes is a known flaw in the Indian system, so yes I believe that the focus on ease of doing business will impact all parties positively.
Vikram Gupta, Managing Partner, IvyCap Ventures
Now online filing of business tax, services tax, TDS submission, PF and ESIS makes things quite easy for us, otherwise it is a very tough job to do
it offline.
Amit Gupta, CEO, NCR Eduservices Pvt. Ltd
We believe that the Ease of Doing Business initiative by the government to improve the business conditions over the long term and this is
something we are very optimistic about. But it would be very difficult to judge the impact of this program over the short term.
Kae Capital
While it may take some time for the changes to permeate in the system, I think the more immediate changes can be experienced by the startups.
Today, even the processes for formation and winding up of companies are quite tedious. The government seems to be actively working out
measures to address these gaps. It may take a while for these efforts to bear fruit, but the intent is there in the right direction. Excessive and longdrawn processes is a known flaw in the Indian system, so yes I believe that the focus on ease of doing business will impact all parties positively.
Vikram Gupta, Managing Partner, IvyCap Ventures
The general ease of doing business in India is not yet in place. The pace at which startups operate is very fast whereas government processes are
lengthy and often take a long time for clearance formalities and paperwork. Government should address challenges faced by startup companies and
set up proper compliance and redressal forums for addressing these issues. There should be an easy and hassle free way to wind up and exit. The
burdens of forming a company and meeting our regulatory requirements did affect our pace in certain manner which should be really looked upon
by government with a simple and single window clearance system.
Vinay Jain, Co-Founder, FabStorey.com
Not in a noticeable fashion. Now also it is a popular advice in Bangalore to register company in the US if some one is starting a tech company.
Shameel Abdulla, Co-founder & CEO, Jiffstore
Industry speak
Many approvals needed these are time consuming and delay launch of services. Failure to look at hospital industry on par with manufacturing
industries is another challenge. We have to pay commercial charges for electricity with no rebate. Patients are exempted from service tax, as the
medical services are excluded. But hospital has to pay service taxes for rental space leading to additional burden of 14.5 percent (rent will be 15
percent of total expenses). No tax rebates for Health startups unlike tech companies is a hurdle. There should be incentives if health care startups
set up services in under-privileged and rural areas.
Adarsh Somashekar, Director, Ovum Hospitals
a) Ease of starting, selling and shutting down of business, b) Easy availability of seed capital, c) Relevant mentorship as education system is far
behind in aiding entrepreneurship
Shameel Abdulla, Co-founder & CEO, Jiffstore
Factors that will drive M&A environment in India over the next 2-3 years
Ease of acquisition process and procedural/statutory formalities that could encourage acquisitions by companies not based in India but trying to
acquire Indian companies.
Arvind Pani, Reverie Language Technologies Pvt. Ltd.
Availability of collateral free loans/equity and reduced rate of interest since health is a priority sector with a longer payment window (7 to 10 years)
rather than the existing 3 to 5 years.
Adarsh Somashekar, Director, Ovum Hospitals
As per my opinion if we can give startups an incubation period for some time, relaxation of some policies (if possible) so entrepreneurs can focus
only on business.
Amit Gupta, CEO, NCR Eduservices Pvt. Ltd
I think there are two aspects to this: domestic M&A and foreign inbound M&A. For the latter, one of the challenges historically has been around the
lack of discovery compared to ecosystems like Israel; however, several platforms and industry bodies such as ISpirt or Nasscom are now far more
active in showcasing Indian startups to corporates abroad, and creating the right networking avenues. This is especially key to increase visibility
for our product startups (beyond IT services) many of whom are operating with world-class quality and user experiences. Secondly, greater clarity
around the tax policy would definitely help. We have seen that measures such as retroactive taxation can severely dent the confidence of foreign
acquirers. The current government is doing some laudable work simplify investment procedures, but theres a long way to go. Third, I think labour
market reforms in general will also give far more comfort since most scaled businesses in India will involve thousands of employees.
Nitin Sharma, Principal & Founding member, Lightbox India Advisors Private Limited
Weve always seen the trend of M&As and think that this tends to happen in markets which are in the consolidation phase. Case in points being the
acquisition of redBus, Myntra, Taxi For Sure, Qickwell, CommonFloor, and we expect this trend to continue in 2016 and into the future too.
Kae Capital
Allow an easier flow of foreign capital into India. Maybe a re-look at the period for which STCG tax is applicable. Increased acquisition by Unicorns is
a going trend, can improve further. Improved strategic buy-outs/synergistic acquisitions and acquisition for talent is another upcoming trend.
Vikram Gupta, Managing Partner, IvyCap Ventures
The government must help startups promote themselves, not just in India but across the globe, as well as create policies that are startup friendly
so that Indian startups get a major boost and they can further create better employment opportunities for the youth of the nation.
Vikas Jain, TheCabwala.com
a. The Government can look for providing 1-3 years of tax and compliance holiday for investors, venture capitalist and foreign funds.
b. Government should also look into Automatic FDI route for E-commerce sector, which is otherwise creating difficulties for startups to raise funds
and many of them have to put up there notional offices outside the country.
c. The government should invest in building startup incubators and provide easy access to various other resources that a new business needs when
starting out.
d. Relaxed taxation policies, faster regulatory approvals, an increase in infrastructural support are some of the immediate measures that the
government must address. Given these sops, it is only a matter of time and India will catapult into the league of best startup countries of the
world.
e. Lastly, even before the launch of Startup India, it must be clear that the criterias and parameters are different in startup environment. It is not
essential to exponentially grow the number of startups instead to identify the high potentials one in strategic areas and assist them in scaling
up and scripting a fab-story by providing right infrastructure support. Even one success can have a surprisingly stimulating effect on an
entrepreneurship ecosystem, writes Daniel Isenberg in the Harvard Business Review, coining this effect the law of small numbers.
Vinay Jain, Co-Founder, FabStorey.com
a) Ease of laws regarding transfer of legal entity, assets, IP, b) Awareness, ease, speed of IP filing, c) Avenues to facilitate strategic partnerships
and mergers
Shameel Abdulla, Co-founder & CEO, Jiffstore
9. Appendix
Indian Company (Direct Tax Filing Dates)
January
S
February
10
10
11
12
13
14
11
12
13
14
15
16
17
15
16
17
18
19
20
21
18
19
20
21
22
23
24
22
23
24
25
26
27
28
25
26
27
28
29
30
31
07. Last date for withholding tax payment for the month of January
07. Last date for withholding tax payment for the month of December
15. Last date for filing withholding tax return for the third quarter
30. Last date for furnishing withholding tax certificate to the payee for 3rd quarter
March
April
10
11
12
13
14
15
16
17
18
19
20
21
12
22
23
24
25
26
27
28
29
30
31
10
11
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
30. Last date for withholding tax payment for the month of March
07. Last date for withholding tax payment for the month of February
15. Last date for advance tax payment for the fourth quarter
May
S
June
W
10
11
12
13
10
11
12
13
14
15
16
14
15
16
17
18
19
20
17
18
19
20
21
22
23
21
22
23
24
25
26
27
24
25
26
27
28
29
30
28
29
30
31
07. Last date for withholding tax payment for the month of April
07. Last date for withholding tax payment for the month of May
15. Last date for filing withholding tax return for the fourth quarter
15. Last date for advance tax payment for the first quarter
30. Last date for furnishing withholding tax certificate to the payee for the 4th
quarter
31. Last date for furnishing withholding tax certificate to the employee in Form 16
July
S
August
W
S
1
10
11
12
13
14
15
16
17
18
10
11
12
13
14
15
19
20
21
22
23
24
25
16
17
18
19
20
21
22
26
27
28
29
30
31
23
24
25
26
27
28
29
30
31
07. Last date for withholding tax payment for the month of June
15. Last date for filing withholding tax return for the first quarter
30. Last date for furnishing withholding tax certificate to the payee for the first
quarter
07. Last date for withholding tax payment for the month of July
September
S
October
10
11
12
10
13
14
15
16
17
18
19
11
12
13
14
15
16
17
20
21
22
23
24
25
26
18
19
20
21
22
23
24
27
28
29
30
25
26
27
28
29
30
31
07. Last date for withholding tax payment for the month of August
07. Last date for withholding tax payment for the month of September
15. Last date for advance tax payment for the second quarter
15. Last date for filing withholding tax return for the second quarter
30. Last date for filing Income tax return if the company is not required to submit a
report u/s 92E
30. Last date for furnishing withholding tax certificate to the payee for the second
quarter
November
December
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
06. Last deposit date for TDS for the month of October
07. Last date for withholding tax payment for the month of November
07. Last date for withholding tax payment for the month of October
15. Last date for advance tax payment for the third quarter
30. Last date for filing Income tax return if the company is required to submit a
report u/s 92E
Startups India - An Overview | 41
January
S
February
10
10
11
12
13
14
11
12
13
14
15
16
17
15
16
17
18
19
20
21
18
19
20
21
22
23
24
22
23
24
25
26
27
28
25
26
27
28
29
30
31
06. Last deposit date for Service Tax for the month of January
06. Last deposit date for Service Tax for the month of December
March
April
10
11
12
13
14
15
16
17
18
19
20
21
12
22
23
24
25
26
27
28
29
30
31
10
11
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
24. Last date for filing return for Service tax for the period October - March
06. Last deposit date for Service Tax for the month of February
31. Last deposit date for Service Tax for the month of March
May
S
June
W
10
11
12
13
10
11
12
13
14
15
16
14
15
16
17
18
19
20
17
18
19
20
21
22
23
21
22
23
24
25
26
27
24
25
26
27
28
29
30
28
29
30
31
06. Last deposit date for Service Tax for the month of April
05. Last deposit date for Service Tax for the month of May
Appendix
July
S
August
W
S
1
10
11
12
13
14
15
16
17
18
10
11
12
13
14
15
19
20
21
22
23
24
25
16
17
18
19
20
21
22
26
27
28
29
30
31
23
24
25
26
27
28
29
30
31
06. Last deposit date for Service Tax for the month of June
06. Last deposit date for Service Tax for the month of July
September
S
October
10
11
12
10
13
14
15
16
17
18
19
11
12
13
14
15
16
17
20
21
22
23
24
25
26
18
19
20
21
22
23
24
27
28
29
30
25
26
27
28
29
30
31
04. Last deposit date for Service Tax for the month of August
06. Last deposit date for Service Tax for the month of September
23. Last date for filing return for Service tax for April - Sep
November
December
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
04. Last deposit date for Service Tax for the month of November
VAT
Timeline for
Registration
Periodicity of
filing
Due date of
filing
Periodicity of
Payment
Due date of
E Payment
payment of tax
Hard copy
return within
one month
from end of
the quarter
Monthly
By 15th of
the following
month
No
Hard copy
return within
one month
from end of
the quarter
Monthly
By 15th of
the following
month
No
Within 25
days from the
end of the six
monthly tax
period
Monthly
By 5th
of month
following (6th
in case of
e-payment)
Yes
Central Sales
Tax
Same as VAT
Service Tax
4-5 Weeks
in case of
centralised
registration
Quarterly
a. April
- September 25th October
Liability
for March
needs to be
deposited by
March 31.
Customs
- Importer
Exporter
Code ('IEC')
E Return
within 10
days of month
following
Monthly
By 5th
of month
following (6th
in case of
e-payment)
Yes
Liability
for March
needs to be
deposited by
March 31.
2-3 Weeks from There are no periodic compliances under the said legislation.
submission of
At the time of Import of goods into India, Bill of Entry is processed by the Customs
application
authorities and the importer needs to discharge appropriate duties in accordance
with Customs Act read with various rules and regulations.
* Please note that for availing any benefits under Foreign Trade policy (available to an exporter), the benefit i.e. scheme/license shall be applied at least 30-45 days in advance
* Please note that for availing any benefits under Foreign Trade policy (available to an exporter), the benefit i.e. scheme/license shall be applied at least 30-45 days in advance
** Further, Compliance under SVB (Special Valuation Branch) proceedings under Customs laws also needs to be complied within 30 days from the date of first import from
related party. The SVB proceedings aim at establishing the arms length price between related party imports and usually take about 5-6 months for obtaining an order. The
order is valid for 3 years, post which the same needs to be renewed
Appendix
S. No.
State
Return
Frequency
Due Date
(Next Month)
Payment
mode
Due Date
(From end of
tax period)
Frequency
E Filing
Orissa
Monthly
21-Jan-16
E payment
21-Jan-16
Quaterly
Yes
No
Bihar
Monthly
15-Jan-16
E payment
30-Jan-16
Quaterly
Yes
No
Rajasthan
Monthly
14-Jan-16
E payment
14-Feb-16
Quarterly
Yes
No
West Bengal
Monthly
21-Jan-16
E payment
31-Jan-16
Quarterly
Yes
Yes
Karnataka
Monthly
20-Jan-16
E payment
20-Jan-16
Monthly
Yes
No
Kerala
Monthly
10-Jan-16
E payment
15-Jan-16
Monthly
Yes
Yes
Gujarat
Monthly
22-Jan-16
E payment
30-Jan-16
Monthly
Yes
No
Tamil Nadu
Monthly
20-Jan-16
E payment
20-Jan-16
Monthly
Yes
Yes
Telengana
Monthly
20-Jan-16
E payment
20-Jan-16
Monthly
Yes
No
10
Maharashtra
Monthly
21-Jan-16
E payment
21-Jan-16
Monthly
Yes
No
11
Punjab
Monthly
28-Jan-16
E payment
30-Jan-16
Quaterly
Yes
Yes
12
Uttar Pradesh
Monthly
20-Jan-16
Manual
payment
20-Jan-16
Monthly
Yes
Signed return to be
uploaded again as
confirmation
13
Delhi
Monthly
21-Jan-16
E payment
25-Jan-16
Quarterly
Yes
Yes
14
Haryana
Monthly
15-Jan-16
Manual
payment
30-Jan-16
Quarterly
Yes
Due Date for Annual Return and VAT Audit for FY 2014-15
S.No.
State
Annual Return
VAT Audit
Rajasthan
31-Dec-15
31-Dec-15
Uttar Pradesh
30-Oct-15
30-Sep-15
Haryana
30-Nov-15
NA
Kerala
30-Apr-15
31-Dec-15
Gujarat
31-Dec-15
31-Dec-15
Orissa
NA
30-Sep-15
Bihar
31-Dec-15
31-Dec-15
Punjab
20-Nov-15
20-Nov-15
10
Tamil Nadu
NA
31-Dec-15
11
Maharashtra
NA
15-Jan-16
12
Karnataka
31-Dec-14
31-Dec-15
13
West Bengal
NA
31-Dec-15
Corporate
Secretarial
Compliances
Timelines
Disclosure of interests
Form MBP-1
Form MGT-14
1. Director
Director to submit details with the Company disclosing their interest or
concerns in the various entities as prescribed in the form.
2. Company
The Company has to file with the Registrar of Companies (ROC)1 a
resolution taking note of disclosures made by the director in Form MBP-1.
Appendix
Corporate
Secretarial
Compliances
Timelines
Deposits
Form DPT -3
Company has to file the return of the existing deposits as on the 31st
March each year in the prescribed form.
Board Meetings
The Company has to conduct minimum 4 meetings during the year.
General Meetings
The Company has to conduct an Annual General Meeting during the year
and such other general meetings in case of any event.
Statutory Registers
The Company is required to maintain the following list of mandatory
statutory registers:
1. Register of directors
2. Register of members
3. Register of charges
4. Register of contracts in which directors are interested
5. Register of directors shareholding
Other event based filings
- Change of directors/Change in their designation
- Change of Auditors
- Shifting of registered office
- Allotment of shares etc.
Every company is required to file annually its audited financials within due
time with ROC as adopted in Annual General Meeting (AGM)
FEMA2
related
policies
Filing of Annual Return of Assets and Liabilities with relevant annexure- This form is required to be filed by every 15th July every year
company which has received any remittances from abroad during any previous year relating to share purchase
etc.
About ASSOCHAM
ASSOCHAM
The Associated Chambers of Commerce and Industry
of India (ASSOCHAM), Indias premier apex chamber,
initiated its endeavour of value creation for Indian industries
in 1920. Having in its fold more than 400 chambers and
trade associations, and serving more than 4.5 lakh members
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economy by playing a catalytic role in shaping up the trade,
commerce and industrial environment of the country. It has
VLJQLFDQWO\FRQWULEXWHGLQWKHHPHUJHQFHRIQHZDJH,QGLDQ
corporates, characterised by a new mindset and global
ambition for dominating the international business.
Known as the fountain-head of knowledge for the Indian
industries, ASSOCHAM has emerged as forceful, proactive,
forward looking institution that is equipped to meet the
aspirations of corporate India in the new world of business.
5HDG\WRUHGHQHWKHG\QDPLFVRIJURZWKDQGGHYHORSPHQW
in the technology driven cyber age, it aims empower Indian
enterprises by inculcating knowledge that will prove to
be the catalyst of growth in the technology driven global
market. ASSOCHAM aims to help and guide businesses
to upscale, align and emerge as formidable players in their
respective business segments. Its mission is to impact the
policy and legislative environment so as to foster balanced
economic, industrial and social development.
ASSOCHAM is working towards creating a model business
environment in India that is at par with the rest of the world
and that of a developed economy. It derives its strength
from its promoter chambers and other industry/regional
chambers/associations spread all over the country.
ASSOCHAM Offices
The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
5 Sardar Patel Marg, Chankyapuri, New Delhi 110021
Tel: 46550555 (Hunting Line) Fax: 011-23017008/9 Website: www.assocham.org
Southern Regional Office
Credits
Grant Thornton
Authors
Harish HV
Prashant Mehra
Kinnari Gandhi
Anirudh Gupta
Dinesh Kumar
Shreyans Bhansali
Divyabala N
Monica Kothari
Editorial review
Design
Mrityunjay Gautam
Harish HV
Partner
Grant Thornton India LLP
M: +91 99001 12127 | E: [email protected]
Prashant Mehra
Partner
Grant Thornton India LLP
M: +91 98110 24129 | E: [email protected]
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