Big Deal | Startups seek government support to domicile back to India
Industry seeks government support, IFSCA has formed a committee to explore a tax free transfer of stratups to Gift City in the financial services sector.
Ghar Wapsi theme is gaining momentum in the startup space in the midst of several headwinds faced by the new age digital companies.
Ghar Wapsi is essentially domiciling back to India those startups, which are founded by the Indians, operating in Indian market presently but incorporated overseas.
Economic survey this year had paid cognizance to onshore Indian innovation aspect with the concerted effort by Indian government and regulatory agencies. But this is not an easy structure nor is it tax efficient and the startups seek government’s support along with tax dispensations.
While discussing this in a CNBC-TV18 special Big Deal, Dhiresh Bansal of Meesho said, “There are about 20 plus of the 100 odd unicorns that are currently in India which are incorporated outside. It is a question that we think about which is — does continuing to be incorporated in jurisdictions outside India make more sense or is it time to come back.”
“It is quite important to think about this as a very real option,” he added.
According to Siddharth Pai of 3one4 Capital, the reasons for these companies to end up flipping back to India remains very strong.
“If the government does create a scheme to allow them to come back, I think a large number of them will decide to come back to India and re-domicile to India itself,” he said.
Also Read | Startup Digest: Physicswallah acquires UAE-based Knowledge Planet & Good Glamm Group acquires Bulbul
While sharing his views on what are the technical aspects of doing this, Mehul Bheda of Dhruva Advisors said, “There are a few structures which are possible. No two structures are alike, so one has to look at the facts of each structure and then see how to make it more efficient.”
For more details, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM