Handbook for Start-Ups - A Tax and Regulatory Guide



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 .

Key Features

  1. 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.
  1. 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.

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About Author

Radhika Jain is a chartered accountant with over 20 years of consulting experience garnered through previous employment with EY and PwC, and during her tenure as a tax partner with Grant Thornton in India.

Her domain expertise includes advice on optimal investment and business structures for greenfield ventures, tax and regulatory structuring of mergers, acquisitions and cross border business transactions. She is well-versed with the Indian tax and regulatory framework having supported several clients, both MNCs and Indian businesses, in structuring their investments and doing business in a tax efficient & regulatory compliant manner.

Radhika has presented on FEMA and tax issues related to inbound and outbound investments at various seminars conducted by professional bodies and industry chambers such as the Institute of Chartered Accountants of India, Institute of Companies Secretaries of India and ASSOCHAM.

She holds a B. Com (Hons) degree from the University of Delhi, an L.L.B degree and is a member of the Institute of Chartered Accountants of India.