The Indian startup landscape has witnessed phenomenal growth in the last decade, becoming the world’s third largest startup ecosystem (after USA and China).
This book covers key tax and regulatory implications plus compliances of relevance during the life cycle of a business venture – from setting up to fund raising, acquisitions & consolidation and divestment by promoters. It would be useful for startup entrepreneurs, management and professional advisors, company secretaries, chartered accountants as well as non-residents intending to do business or who are doing business in India .
- Captures relevant implications under the following Indian tax and corporate laws:
- Income-tax Act, 1961.
- Goods & Service Tax statutory regime.
- Foreign Exchange Management Act, 1999 and relevant regulations thereunder.
- Companies Act, 2013.
- Limited Liability Partnership Act, 2008.
- Various labour laws.
- Includes the following:
- Incentives under ‘Startup India Initiative’ and requirements for government recognition.
- Issuance of sweat equity shares and structuring of ESOPs.
- Tax and regulatory nuances of angel, VC, PE investment with succinct summary of GAAR, MLI and indirect transfer tax provisions.
- Key clauses that come up for negotiation in early-stage fund raising agreements.
- At a glance comparison of jurisdictions commonly used for investments into India by PEs.
- FEMA provisions for outbound investment and PoEM tax provisions impacting use of SPVs.
- Income tax and GST aspects of sales and procurements from domestic & foreign vendors.
- Compliance checklist covering income tax, GST, corporate law, FEMA and labour laws.
- Key tax issues in M&A transactions with comparative overview of alternative consolidation modes.
- Divestment related tax issues e.g. in relation to buybacks, non-compete fee and deferred /contingent consideration.
- Overseas investment under RBI’s Liberalised Remittance Scheme and some pertinent FAQs.
- Use of private trust structures by promoters for wealth and asset management.