The Union Budget 2020 announced recently had several upsides for the businesses of start-ups and MSMEs. In order to support the growth of start-ups, the Finance Minister proposed that employees who exercise ESOPs issued by start-ups can defer the payment of tax thereon by a period of five years or till the employee leaves the organisation or at the time of sale of ESOPs, whichever is earliest. Another major step to boost the start-up ecosystem was that an eligible start-up with turnover of up to INR 100 crore can claim deduction of 100% of its profits for three consecutive assessment years out of ten years. Earlier, this 100% deduction of profits was only available to start-ups with turnover of up to INR 25 crore and eligible for seven assessment years.

Compliance Burden

The Government also sought to reduce the compliance burden on small retailers, traders, and shopkeepers, by raising the turnover threshold for audit from existing INR 1 crore to INR 5 crore for businesses that carry out less than 5% of their transactions in cash. The Government shall provide support in areas of technology upgradation, business strategy, R&D to mid-size companies in pharmaceuticals, auto components, etc. and has launched a scheme of INR 1,000 crore to further this goal.

With the launch of the Start-up India program, many schemes were introduced to build up the start-up ecosystem in India. The scheme of Support for International Patent Protection in Electronics and Information Technology was launched to provide financial support to technology start-ups and MSMEs for international patent filing to encourage innovation and recognize the value and capabilities of global international patent along with capturing growth opportunities in information communication, technology, and electronics sector.

Another important initiative is in the form of the Biotechnology Ignition Grant (BIG) launched by the Biotechnology Industry Research Assistance Council (BIRAC) which believes that the “bio-innovation capital” of the nation would come from novel ideas which have a commercialisation potential and that evolve out from start-ups or academic spin-offs. BIRAC's strategy is therefore to support the numerous exciting ideas which have an unmet need for funding and mentorship. This strategy is fulfilled through the BIG grant funding scheme which is available to scientist entrepreneurs from research institutes, academia and start-ups. This scheme is designed to stimulate commercialization of research discoveries by providing very early stage grants to help bridge the gap between discovery and invention.

The Boost

Many initiatives and programs like MUDRA, 'Make in India' etc. have helped India in maintaining its third position in the world amongst countries which encourage start-ups. These are many more initiatives taken by the Government of India to boost the start-up ecosystem in the country and it's easy to feel overwhelmed and miss the correct starting point whilst navigating through such a wide array of available schemes. This makes it important to partner up with right advisors and use one's resources efficiently to not lag behind. At Banka CFO, we believe in being the one stop solution for compliance and financial needs of a start-up business.

Banka CFO is part of a well-established institution with its roots since 1986 and actively provides personalised services to clients, listens to their needs, and identifies opportunities to help improve the quality and value of the businesses and personal lives. In the word of Peter Drucker, “Do what you do best, and outsource the rest”.

Banka CFO operates in four main verticals being, outsourced CFO services, book-keeping, tax compliance, and registration services, corporate compliance management services, and legal support services. As an outsourced CFO, we provide financial management to business, at whichever stage it is. As a value added CFO, we find hidden revenues, and bring out best from business so that it can have better market value. We provide essential services including but not limited to book-keeping and filing of returns, incorporation services, and registration of various licenses. We even offer legal due diligence, drafting of agreements, and legal advisory services. We also manage many compliance issues that any start-up or MSME business is required to observe under corporate laws, labour laws, or business laws. Clearly, we believe in operating as a one stop shop all for all compliance and financial requirements of a start-up, while providing our expert knowledge to our clients.

Assistance

Banka CFO constitutes of a team of highly professional and experienced chartered accountants with CA Shristi Banka as our Founder Partner and CEO and guided by expert advisor, CA Pradeep Banka and many efficient personnel who are at service to provide world class financial services to one's organisation. Banka CFO also assists budding entrepreneurs to setup their own business by helping them with the incorporation process and obtain necessary registrations under various certifications.

Banka CFO helps with each and every function related to your business starting from incorporation to maintenance and operations, from stabilising to expanding it along with many other functions that are essential for its daily functioning. We help in guiding businesses to raise funds, raising or restructuring bank loans, private equity. To sum up, Banka CFO provides expertise in the field of incorporation, operational support, business evaluation, compliance, advisory, and litigation to enhance the value of budding start-up organisations in India.

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About Shristi Banka

Shristi Banka, a Chartered Accountant and Founder & CEO, Banka & Banka CFO Services LLP, launched Banka CFO with a vision to provide all professional services to individuals and organizations that don't have access to reliable financial, accounting and legal commercial expertise services at affordable prices. She aims to provide finance effectiveness services to their clients across industry verticals and sizes with a primary focus on young organizations that cater to their growing needs.