Lesser paperwork for start-ups as govt does away with cash flow statements

Industry experts are unsure of the number of startups it might benefit from this

Veena Mani & Karan Choudhury  |  New Delhi 

Start-ups in the country could cut administrative costs, with the government allowing them to forgo cash-flow statements. However, experts are sceptical about how many companies would benefit from this, as few have managed to fit the government’s definition of a start-up. A recent notification of the Ministry of Corporate Affairs (MCA) has amended the exemptions to the Companies Act to accommodate start-ups. Essentially, these amendments aim to reduce paperwork for smaller companies that operate on a tight budget and might not have the resources for extra ...

TO READ THE FULL STORY, SUBSCRIBE NOW AT JUST Rs 149 A MONTH

Key stories on business-standard.com are available to premium subscribers only.

LOGIN

EMAIL / USER NAME
PASSWORD
REMEMBER ME Forgot password?
LOGIN

Not a member yet ? Resister Now

Connect using any below

  • Don't lose the opportunity of saving $26.77 per month
  • Don't lose the opportunity of saving $26.77 per month
Total Amount
Rs. 0.00
To proceed, kindly select a subscription package

WHAT YOU GET

On Business Standard Digital

  • Access your subscription from anywhere. Be it your computer, tablet or smartphone using a browser or the App, Your Choice.
  • Access to exclusive content, features, opinions and comment, hand-picked by our editors, just for you.
  • Pick your 5 favourite companies. Get all the news upates at the end of each day through E-Mail.
  • Pick the industry that you want to track. And get a daily news letter specific to that industry. Cut out the clutter.
  • And stay on top of your investments. Track stock prices in your portfolio
  • Access 18 years of archival data

On Digital

  • Seamless access to WSJ.com with your Business Standard digital account.
  • Experience the best of the Journal's reporting, video and interactive features.
  • Read about the people and events shaping business, finance, technology, politics, technology and culture.
  • Stay informed with newsletters - an easy way to get WSJ content straight to your inbox - making life easier on your busiest days.
  • More business executives read the Journal globally than any other publication.
*Note :
Our Partners are proud to be associated with this initiative and will contribute Rs 100 x 6 months thereafter, standard rate of Rs 149 will be charged.
Offer valid for Indian residents only
Requires you to share personal information like PAN, Date of Birth, and Income.
*Annual saving on WSJ subscription price of US$ 347.88 (12 months @ US$ 28.99 per month)
* 1US$ = 67.50 INR.
*Please note that this offer is not valid if you are/were a registered/existing user on WSJ Digital

Lesser paperwork for start-ups as govt does away with cash flow statements

Industry experts are unsure of the number of startups it might benefit from this

In a move that could give much needed relief to the startup ecosystem in the country and reduce their paperwork as well as administration costs, the government in a notification has said that startups would not have to prepare cash flow statements. However industry experts are unsure of the number of startups it might benefit as the not many firms till now have not been able to fall under the government's definition of startups.In a recent notification issued by the Ministry of Corporate Affairs (MCA), it has amended the exemptions to the Companies Act to accommodate the start-up community. Essentially, these amendments are along the lines of reducing paper work for smaller companies who run on a tight budget and might not have the manpower or the resources for maintaining extra paperwork. "These companies will not have to prepare cash flow statements. Though cash flow statements will not be declared, these start-ups have to mention in detail accruals," a senior MCA official said. It . Start-ups in the country could cut administrative costs, with the government allowing them to forgo cash-flow statements. However, experts are sceptical about how many companies would benefit from this, as few have managed to fit the government’s definition of a start-up. A recent notification of the Ministry of Corporate Affairs (MCA) has amended the exemptions to the Companies Act to accommodate start-ups. Essentially, these amendments aim to reduce paperwork for smaller companies that operate on a tight budget and might not have the resources for extra ... image
Business Standard
177 22