RBI sets up helpline for startups on fund-raising

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With startups raising funds from a variety of offshore sources, including individuals, private equity players and crowdsourcing, the RBI has set up a dedicated helpline for advice on cross-border remittances which are subject to guidelines issued under the foreign exchange management act.

 

Although businesses are supposed to know the law before they raise capital, many of the startups are being promoted by very young and inexperienced individuals. Moreover, the amount raised by some of them run into only a few lakhs, making it difficult for them to hire law firms.

 

The helpline is actually an email ID (helpstartup@rbi.org.in) through which RBI will respond to queries. The central bank said that it will offer guidance/assistance to them for undertaking cross-border transactions within the ambit of the regulatory framework.

 

“While seeking guidance, the enterprises should provide complete information to the RBI and mention the specific issues on which they need guidance in relation to the Foreign Exchange Management regulations. This would enable the personnel attending the helpline to offer timely and effective information.”

 

In his Independence Day speech, Prime Minister Narendra Modi had announced that government would take measures to promote startups in the country. Since then, the government has sought inputs from investors like SoftBank president Nikesh Arora and Snapdeal CEO Kunal Bahl and former Infosys director Mohandas Pai. The department of industrial policy and promotion had drawn up an action plan to address concerns of entrepreneurs. One of the issues raised was the cumbersome process in complying with the Foreign Exchange Management Act (FEMA) documentation.

 

Startups usually undertake a wide range of cross-border transactions including those related to investment. Cross-border transactions of resident Indians are subject to the regulatory regime provided by the Foreign Exchange Management Act, 1999.

 

Source: http://timesofindia.indiatimes.com/business/india-business/RBI-sets-up-helpline-for-startups-on-fund-raising/articleshow/50290682.cms

Japan’s SoftBank wins first solar project in India

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Marking its debut in the Indian solar sector after its investment announcement of $20 billion, Japan’s SoftBank won its first solar power project in India. The Japanese firm won the 350 megawatt (Mw) project, under the Jawaharlal Nehru National Solar Mission (NSM), through its joint venture (JV) company SBG Cleantech.

SBG Cleantech bid the lowest tariff of Rs 4.63 per unit to win the entire tendered capacity of 350 Mw. This is the lowest bid this year for solar power. Last month, US firm SunEdison had won a 500-Mw solar power park in Andhra Pradesh at the same tariff.

Indiabulls’ Yarrow Infrastructure, Azure Power, Reliance CleanGen, Goldman Sachs-backed ReNew Power, US’ First Solar and China’s Trina Solar were also in the fray.

“Our goal is to create a market-leading renewable energy company, to fuel India’s growth with clean, reliable and affordable sources of energy. I am glad we could open our account with this win. This project will immensely contribute to the Prime Minister’s vision of meeting the country’s energy demands through clean sources and India’s commitment to providing a safe environment, following the recent Paris convention,” said Nikesh Arora, president and chief operating officer of SoftBank, in a statement.

In June this year, SoftBank had tied up with Foxconn and Bharti Enterprises to invest in the Indian solar energy sector, committing $20 billion. This is its second bid participation after the AP solar park and the first win for any power project through its JV, SBG Cleantech.

“SoftBank is establishing itself as a serious player. The company is likely to be a strong contender in the upcoming national bids as well,” said Jasmeet Khurana, associate director (consulting), Bridge to India.

SBG Cleantech has Bharti veterans Manoj Kohli as executive chairman and Raman Nanda as chief executive. The company is headquartered in New Delhi.

“Of the 100 gigawatt (Gw) target set by the PM, the SoftBank venture will look at solar power generation of 20 Gw. The investment will be made through the next 10 years. Acceleration will depend on the support of the central and local governments, and NTPC,” SoftBank founder & CEO Masayoshi Son had said in June during the launch of the joint venture.

According to market experts, the recent bids show there are only 10-12 developers who have the appetite to continuously try and take up large projects at current tariff levels, which has gone below Rs 5 a unit.

“The government and power distribution companies must be happy about the results and this might be good for continued policy support for new allocations across India. With such results, the states are likely to be much more willing to allocate land to solar parks and take the NSM route to attract solar investments,” said Khurana.

Sun Power

Company Tariff                                                              (Rs per unit)

SBG CLEANTECH LTD (SoftBank)                                      – 4.63

Yarrow Infrastructure Limited (IndiaBulls)                          – 4.64

Azure Power India Private Limited                                        – 4.76

Reliance CleanGen Limited                                                     – 4.88

ReNew Solar Power Private Limited                                       – 5.17

MIRA ZAVAS PRIVATE LIMITED (China’s Trina Solar)  – 5.18

Marikal Solar Parks Pvt Ltd (US’ First Solar)                       – 5.34

*Parent  institutions in brackets

 

Source: http://www.business-standard.com/article/companies/japan-s-softbank-wins-first-solar-project-in-india-115121500246_1.html

Make in India: DIPP looks to include micro, small and medium industries in startup definition

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A clear definition is imperative for the government to decide which companies can draw the benefits of any scheme for startups.

The government is considering a proposal to include micro, small and medium enterprises (MSMEs) in its definition of startups to help boost the Make in India campaign. Various government departments have held a series of brainstorming sessions to discuss the definition so that the policy can be formalised. A clear definition is imperative for the government to decide which companies can draw the benefits of any scheme for startups.

The Department of Industrial Policy and Promotion (DIPP) is spearheading the exercise of formulating the startup policy, along with ministries such as finance, skill development and MSME among others. The Start-Up India initiative is scheduled to be announced by Prime Minister Narendra Modi in January 2016 and the policy needs to be finalised by then. Progress on the initiative is being monitored directly by the Prime Minister’s Office. India wants to create an ecosystem that encourages entrepreneurship and is collecting suggestions from the startup community for steps that need to be taken to ensure that the Start-Up India initiative is a success.

Including MSMEs, collectively one of the biggest employers of people in India, is seen as positive for manufacturing and therefore employment generation, key aims of the Make in India programme. Officials are also discussing specific criteria that would make an MSME eligible to be called a startup. This would determine eligibility for incentives such as fewer compliance conditions, cheaper credit and tax benefits.

“Defining (startups) is the most complex issue. It involves technology companies MSMEs and so many other sectors. We should be able to finalise something soon,” a senior government official said.

To qualify as a startup, an entity would also have to meet certain financial standards besides having a level of innovation in its product or service. “It is better to have a broader definition of startups, so MSMEs and tech-based startups can both take advantage. The moment one leaves things for interpretation, corruption will seep in,” said Gaurav Kachru, founder, 5ideas Startup Superfuel. Startups are expected to create 250,000 jobs in India by 2020, up from 80,000 now, according to a Nasscom report. The Start-Up India initiative announced by Modi in his Independence Day speech assumes significance given the thrust by the government toward employment generation.

Economic Times View: Start Up On the Ease of Doing Business Front

A wider definition of startups should broad-base attention across industries. In tandem, we need to boost knowledge-creation, innovation and entrepreneurship to better coagulate resources for startups. Otherwise, we will fail to develop a thriving ecosystem, complete with conducive state policy support. In parallel, we need suitable tax treatment and attendant rules so that startups do not see the need to go abroad to do business here in India. We need ease of doing business with the startup economy in mind

 

Source:http://economictimes.indiatimes.com/articleshow/50179566.cms

 

Integrated e-Form INC-29 for Company Incorporation and Ease of doing business

by | posted in: Company Incorporations, e-filing of MCA Returns, Corporate & Business Advisory Services, Corporate Updates | 0

INC 29Analysis of integrated e-Form INC-29 for Company Incorporation and Ease of doing business

With the introduction of the INC-29, the Ministry of Corporate Affairs (MCA) has begun to make good on its promise to improve India’s ranking on the World Bank’s Ease of Starting a Business Index to within the top 50 from the current 158.

The INC-29 form for company registration, combines the application for DIN allotment, name reservation, incorporation and even PAN & TAN, while making the process faster and simpler. As the entire incorporation process is in a single form, correct filing could mean approval in 48 hours. Compared to the old process, this helps in formation of company saving a lot of time, if properly implemented.

Purpose of the eForm – eForm INC-29 deals with the single application for reservation of name, incorporation of a new company and/or application for allotment of DIN. This eForm is accompanied by supporting documents including details of Directors & subscribers, MoA and AoA etc. Once the eForm is processed and found complete, company would be incorporated with Corporate Identification Number (CIN) and the Certificate of Incorporation would be issued. Also DINs gets issued to the proposed Directors, who do not have a valid DIN. Maximum three Directors are allowed for using this integrated form for allotment of DIN while incorporating a company.

Key Features of e-form INC-29 

  1. The integrated e-Form INC-29 is available with effect from 01.05.2015 for One Person Company, Private Company as well as Public Company.
  2. INC-29 does away with filing of multiple applications/forms saving time and payable fees.

It combines the processes relating to:-

  • Allotment of Director Identification Number (DIN) (up to three Directors),
  • Incorporation of a company, and
  • Appointment of first Directors of the company.

3. The new e-Form does away with the need for reserving a name for the company prior to applying for its incorporation.

  1. Declarations are in-built in the e-Form. Separate attachments containing such declarations are not required.
  1. The e-Form is enabled for future integration with e-Biz platform of DIPP for generating applications for PAN, ESIC and EPFO numbers on the platform and therefore provides a single interface for these applications also.

 

Forms no longer to be filed individually as per the new Form INC 29:

Continued

Japanese PM Abe on 3-day visit to India starting today; number of pacts on table

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A Rs 98,000-crore deal to build a bullet train network is among a number of agreements likely to be signed during Japanese Prime Minister Shinzo Abe’s three-day visit beginning on Friday during which he will hold annual summit talks with Prime Minister Narendra Modi.

The focus of the visit will be on forging greater synergies between two major Asian economies and take forward the special strategic ties.

In the 9th annual Indo-Japan summit talks on Saturday, Modi and Abe will review implementation of various decisions taken in course of last one year to enhance economic ties, particularly in the trade and investment sector.

Sources said a number of agreements including awarding the Rs 98,000 crore contract to build India’s first bullet train network will be inked.

After the talks, he will leave for Varanasi, which is Modi’s Parliamentary constituency, where he will attend Ganga Aarti at famous Dasaswamedh Ghat. Modi will accompany Abe during his nearly four-and-a-half-hour-long visit to Varanasi.

Abe will return to New Delhi in the evening.

The Japanese Prime Minister had accompanied Modi during his visit to Kyoto last year.

In Delhi, Abe will call on President Pranab Mukherjee, attend a Japan-India innovation seminar and interact with a group of business leaders.

At the last Summit meeting held in Tokyo last year, the two prime ministers had agreed to elevate the relationship to “Special Strategic and Global Partnership”.

Modi had visited Japan from August 30 to September 3 last year during which that country had announced doubling of its private and public investment in India to about $34 billion over a period of five years.

During the summit talks last year, Modi and Abe had agreed to enhance defence and strategic cooperation to a new level and also decided to speed up negotiations on civil nuclear deal.

While agreeing on greater defence equipment and technology cooperation, the two sides had decided to expedite discussions on modalities for the sale of Japanese US-2 amphibian aircraft.

Foreign Secretary S Jaishankar had held talks with top Japanese officials in Tokyo last month to finalise agenda and other details of Abe’s visit.

India and Japan have been expanding their economic and strategic engagement in recent years resulting in cooperation in a vast swathe of fields including defence and security.

The economic engagement witnessed significant rise after both countries signed a a Comprehensive Economic Partnership Agreement (CEPA) in 2011.

Source: http://www.businesstoday.in/current/economy-politics/japanese-pm-shinzo-abe-on-3-day-visit-to-india-from-today-number-of-pacts-on-table/story/227027.html

Japanese PM assures stronger biz ties with India

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Prime Minister Shinzo Abe on Friday urged Indian industry to invest in Japan even as he highlighted Japan’s interest in the development of India’s infrastructure.

“Japan is going to realise a GDP growth of about $100 trillion. So I want you to come and see a rejuvenated Japan. Like PM Modi, I will also tell you, come, invest in Japan,” he said.

Abe was addressing a seminar on India-Japan Innovation jointly organised by Confederation of Indian Industry (CII) and Japan External Trade Organization (JETRO).

“Common to all of PM Modi’s initiatives – Skill India, Digital India, Smart City – is protection of people, taking care of them and in return taking care of your customers. This is the key to growth,” he added.

Bullet train

“If Shinkansen – the bullet train – starts plying in India then the distances between cities will be shorter contributing to growth with pollution-free technology. We have made financing easier for Indian businesses. We have all resources available for them,” Abe said. “India and Japan should cooperate more in innovation,” he added.

Abe, who is a on a three-day visit here, will be holding the Annual Summit meeting with Prime Minister Narendra Modi on Saturday. Prior to that, both leaders will also be meeting business leaders and captains of Indian and Japanese industry.

The Japanese Premier, who last visited India in January 2014, is accompanied by a high-powered delegation consisting of NEC Corporation, Fujifilm, East Japan Railway, Hitachi Ltd. and LIXIL Corporation among others.

Japan and India are expected to sign a $15-billion bullet train project.

This will be set up between Mumbai and Ahmedabad. The announcement will be made by both the leaders on Saturday. Abe will be addressing the business community again on Saturday along with Modi. Later in the day both leaders will hold the Annual Summit meeting before leaving for Varanasi together.

Two-way trade between India and Japan stood at $15.51 billion in 2014-15 from $13.72 billion in 2010-2011 when both sides had signed the Comprehensive Economic Partnership Agreement (CEPA). Even under the CEPA, while imports from Japan to India have risen sharply, exports from India to that country have not witnessed a proportionate rise.

In fact in the last fiscal, exports to Japan from India contracted 21 per cent to $5.38 billion compared to $6.81 billion in 2013-14.

Source: http://www.thehindubusinessline.com/todays-paper/tp-news/japanese-pm-assures-stronger-biz-ties-with-india/article7978059.ece

Indian economy can grow at 9 per cent for a decade: Professor Lawrence Summers

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India has the potential to grow at 9 per cent for a decade and 8 per cent in subsequent years if the country takes bold reform measures, eminent economist and Harvard University professor Lawrence Summers said today.

“Except India, major emerging economies seem to be losing momentum… I think if India maximises its potential, it could grow at 9 per cent for a decade, and 8 per cent a decade after that, and 7.5 per cent for a decade after that,” Summers said during a session at the Hindustan Times Leadership Summit.

Summers, who is president Emeritus and Charles W Eliot professor at Harvard University said he is very optimistic about the capacity of India but the country needs bolder reforms.

“… 9 per cent growth, decline by 0.5 per cent to 1 per cent every decade, that is my sense about India’s potential that is not my forecast for India because India would have to reform more boldly and take a whole set of steps not just at the national level but at the level of states, and even at the level of culture if it wants to achieve that potential,” he said.

Quoting IMF, Summers said India is projected to be the fastest growing economy in the world over next 5 years.

Summers’ statement assumes significance as India’s economy grew at 7.4 per cent during July-September this fiscal year, more than China’s growth rate at 6.9 per cent.

Summers, who was also US Treasury Secretary, said India should not blindly follow the so called Tiger’s economies growth model and it should give more stress in developing its services sector.

“I think India can do lot to promote manufacturing. But I don’t think it is reasonable to think India should follow South Korea’s export-led growth model.

“India has different potential and it should concentrate more on services sector,” he said.

Summers also stressed on the need of speedier and predictable decision-making in India.

“Speedy decision-making has never been an Indian hallmark. There is still too much of sense in India, that being well-connected is particularly very important in the country. If this can be worked on, nothing like it,” Summers said.

Asked whether the US Fed should raise interest rates, he said, “It is very clear. Given the current context, there isn’t any other alternative to raising interest rates,” he said.

Source: http://economictimes.indiatimes.com/news/economy/indicators/indian-economy-can-grow-at-9-per-cent-for-a-decade-professor-lawrence-summers/articleshow/50055050.cms