Budget 2016 :Govt To Update Companies Act For Start ups
Finance Minister Arun Jaitley on Monday announced that the government will amend the present Companies Act aimed at encouraging the Start ups in India. The Minister while presenting the Union budget 2016-17 also said that the amendment would ease doing business in the country.
The bill which will be introduced by the government to amend the act will also enable the registration of the companies in one day. Currently, it takes around 3-4 days to register a private company. The process of registration begins with procuring a director identification number and ends with the receiving of the certificate of incorporation.
While most of the private companies will be a part of this change, seemingly the business environment will become more favorable for the government’s own brainchild Start up India. The new bill introduced by the government will ensure the ease of setting start ups, and will offer tax exemptions, and almost an 80 per cent discount on patent applications filed by start up.
What is Companies Act?
It is an act of Parliament which ensures the smooth running of companies and regulates its responsibilities. The present Companies Act 2013 was set up after replacing the Companies Act 1956 in the year 2013.
Along with this the government also announced the Digital literacy scheme that would be launched across six crore additional rural households. An amount of Rs 87,765 crore has also been allocated for rural development. The details of the scheme are yet to be announced.
In an encouragement to government’s Digital India scheme, the schools will now have digital depository to maintain the list of school leaving certificates. A unified agriculture market on online platform is also expected to launch on Ambedkar’s Jayanti which is on April 14th.