2.

The MUDRA Loan Scheme

• MUDRA stands for Micro Units Development
and Refinance Agency Ltd.
• It is an agency launched by the government
of India to facilitate corporate term loans to
entrepreneurs.
 3. Stand Up India Scheme
• The Stand Up India scheme is a special
scheme started by the government of India to
financially empower SC/ST and women
entrepreneurs.
• You can borrow between Rs. 10 lakh and Rs. 1
CR to start a manufacturing, trading or service
unit, which is to be repaid in 7 years.
4. SIDBI Revolving Fund for Technology
Innovation
• It provides financial assistance to MSMEs towards
development, up scaling, demonstration and
commercialization of innovative technology based projects.
• The assistance is given in the form of early stage “debt”
funding on softer terms for development, demonstration
and commercialization of new innovations in emerging
technological areas, un-proven technologies, new products,
process, etc. which have not been successfully
commercialized so far.
• Maximum assistance is generally not more than Rs. 1 crore
per project. Interest rate would be as approved by the
Project Approval Committee (PAC) (not be more than 5%
p.a.).
 5. Growth Capital and Equity
Assistance
• Who is it for-
Existing Small and Medium Businesses in need
of Capital for Growth.
• It provides assistance in form of Mezzanine/
Convertible Instruments, Subordinated debt
and Equity (in deserving cases).
 LAWS FOR STARTUPS
Basics of accounting and tax related laws
Understanding your local and country GST tax
code is critical, as it could mean a lot of trouble if
not followed to the T. Your government needs you
to file monthly, and save all invoices and
transactions while entering them via the online GST
web portal. You need to register for the
GSTN number and align your Aadhar, PAN and
other details to the portal to maintain compliance
 LAWS FOR STARTUPS
Choosing the type of venture
Choosing the type of company needed is also important.
For example, small/startup companies should register as
a LLP, Pvt. Ltd., or Corporationaccording to what their
needs are and what the suppliers and vendors need to
fulfil orders. You can also register as an OPC (One Person
Company) which needs only one director to start
off, while all rules of the Pvt. Ltd. variety are applicable.
There are various steps to ensure that all that is needful
is done, and you need to follow these regulations
appropriately. Ensure that your legal status is as per the
business you’re a participant in.
 LAWS FOR STARTUPS
Service Agreement and Documentation
• There is a strong need for agreements and bonds
that help in any future legal proceedings if things go
awry. You need an SLA with every vendor, customer,
client, etc. and must ensure that all the laws of India
are followed when crafting these agreements. Every
agreement and document must state all rules of
engagement and guidelines for the duration of the
service agreed upon.
 LAWS FOR STARTUPS
• IT and Cyber Laws
Your startup must be compliant with all cyber and IT
laws including digital signatures, storing customer
data, cloud management, and data privacy. IT and
cyber laws are applicable to all businesses that
operate in India and startups in the tech space
should be especially cognizant of these regulations
 LAWS FOR STARTUPS
• Intellectual Property Rules (IP)
There is a misconception in India that the courts don’t
protect IP for companies in the country. In fact,
just last year, Delhi Courts have made landmark rulings
in protection of Intellectual Property, and there have
been many startups emerging to support this growing
industry of IP Law.
 LAWS FOR STARTUPS
Industry-specific laws
There are industry-specific regulations within each industry
that you are a player in. Pharma laws will differ slightly
from e-commerce payments laws, but following them is the
key to maintaining your legal status. For example, a law
that could apply to your company is that of accepting cash
for gamification. Accepting direct cash as a means of
buying a lottery may be treated and taxed appropriately via
a gambling law as applicable in the country. This, and many
other laws, can be applicable on your startup, and it’s your
job to conduct thorough research.
 LAWS FOR STARTUPS
Residency
Indian laws mandate that at least one director on the
board be a resident of India, i.e., have lived for a
minimum of 182 days in India in the previous financial
year. This is to ensure that a point of contact and a
legal rights holder to the business is available in the
country of operation.
 LAWS FOR STARTUPS
Labour Laws
• Each startup will eventually have to hire new people.
Even if you plan to outsource or employ independent
consultants, every such employee-employer relationship
will be directed by labour legislations.
• Breaching these will not only harm you financially but
also spreads a negative review about the startup even
before you initiate it.
• Productivity of employees and ultimate success of the
startup are dependent upon how happy your employees
are to work for you.
 LAWS FOR STARTUPS
• Contract laws and dispute resolution
A business survives on contracts. Nevertheless,
disputes may be one of the unavoidable consequences
of few contracts sometimes. Therefore, fundamental
knowledge regarding contracts, arbitration, mediation,
conciliation can smoothen the progress of a successful
business.
SPECIAL ECONOMIC ZONE (SEZ)
PRESENTATION
 WHAT IS SEZ
• A special economic zone (SEZ) is a
geographical region that is designed to export
goods and provide employment.
• SEZs are exempt from federal laws regarding
taxes, quotas, FDI-bans, labour laws and other
restrictive laws in order to make the goods
manufactured in the SEZ at a globally
competitive price.
 DEFINITION OF SEZ
• A special economic zone, in short SEZ is a
geographically bound zone where the
economic laws in matters related to export
and import are more broadminded and liberal
when compared to rest of the country.
• SEZs are protected as duty-free areas for the
purpose of trade, operations, duty, and tariffs.
SEZ units are self-contained and integrated
having their own infrastructure and support
services.
 SALIENT FEATURES/PROVISIONS OF
SEZ RULES
• Different minimum land requirement for different classes
of SEZs.
• Every SEZ is divided into a processing area where the SEZ
units alone would come up and a non-processing area
where the supporting infrastructure is to be created.
• Single-window clearance for setting up of an SEZ.
• Single-window clearance for matters relating to central
as well as state government.
• Simplified compliance procedures and documentation
with an emphasis on self-certification.
 WHAT SEZ INCLUDES
• Free trade zones (FTZ)
• Export processing zones
(EPZ)
• Free zones (FZ)
• Industrial parks or
industrial estates (IE)
• Free ports
• Free economic zones
• Urban enterprise zones
 SEZ AND EXPORT PROMOTION
• The SEZ and export promotion facilitated the
growth of the Indian SEZs, as per the web site of
maps of india.com, where the provisions of
Indian export policy is detailed. The main factor
for the underperformance of these SEZs were
poor export policy of India, which was loaded
with huge taxes and duties. the government of
India eased the export policy of India to facilitate
easy growth of SEZ and export promotion of
Indian goods across international destinations.
• The provisions of Indian export policy, which
facilitated the growth of SEZ and export promotion
of Indian goods, are as follows :

• Exemption of duties on Indian capital goods, and

inputs are offered as per the requirements of the
approved business activity.
• Taxes are either exempted or waived and even
reimbursed in case they are paid in advance to the
concerned authority.
• Duty-free imports of spares, raw materials, capital
goods, and consumable are offered as per there
requirement of the approved business activity.
 SEZS SET UP BY THE CENTRAL
GOVERNMENT
• SEEPZ special economic zone
Mumbai, Maharashtra
electronics and Gems and
jewellery
• Noida special economic zone
Uttar Pradesh multi product
• MEPZ special economic zone
Chennai, Tamil Nadu multi
product
• Cochin special economic zone
cochin, Kerala multi product
• Falta special economic zone
falta,West Bengal multi product
 THE NEED FOR SEZ AND
GOVERNMENT’S POLICY
• SEZ policy introduced on 1/4/2000 in India
• To increase exports
• SEZ can be set up by private, public, joint
sector or by the state government
• Convert EPZ to SEZ
 PROVISIONS UNDER SEZ
• 100% FDI for manufacturing sector
• No caps on foreign investments for SSI reserved
items
• Income tax benefit
• Duty free import of domestic goods
• Exemption from CST
• Exemption from Income tax on investments
• Enhanced limit of 2.4 crore for managerial
remuneration
• Applicability of labor laws
 EVALUATION OF SEZ
• Determine how
resources are used

• Whether Employment
opportunities are
created

• Cost outweighs the

benefit of SEZ
 SEZ CONTROVERSY
• In spite of the strong objectives of the Indian
government, the SEZ policy has the following
controversies :

• Generation of a little new activity as there may be

relocation of industries to take advantage of tax
concessions.
• Revenue loss.
• Large-scale land acquisition by the developers may lead
to displacement of farmers with a meager compensation.
• Acquisition of prime agricultural land, having serious
implications for food security.
 ADVANTAGES OF SEZ
• Growth and development
• Attracts FDI
• Exposure to technology and global markets
• Increase in GDP and economic model
• Employment opportunities are created
 DISADVANTAGES OF SEZ
• Exploitation of laborers
• Women exposed to sexual harassment
• Loss of revenue for Government
• Fertile lands being used for establishing
industrial units
 CONCLUSION
• SEZ can become a dangerous tool
• A well defined strategy required for SEZs to be
successful
• SEZs appeal to most developed countries
 Export promotion schemes
• Software Technology Parks (STPs)
• Special Economic Zones (SEZ) Scheme
 BENEFITS UNDER STP SCHEMES:-
• Customs Duty Exemption in full on imports.
• Central Excise Duty Exemption in full on indigenous procurement.
• All relevant equipment / goods including second hand equipment
can be imported (except prohibited items).
• Equipment can also be imported on loan basis/lease.
• 100% FDI is permitted through automatic route.
• Sales in the DTA up to 50% of the FOB value of exports permissible.
• Use of computer imported for training permissible subject to
certain conditions.
• Depreciation on computers at accelerated rates up to 100% over 5
years is permissible.
 BENEFITS UNDER SEZ SCHEMES:-
• Duty free import/domestic procurement of goods for development,
operation and maintenance of SEZ units
• 100% Income Tax exemption on export income for SEZ units under Section
10AA of the Income Tax Act for first 5 years, 50% for next 5 years
thereafter and 50% of the ploughed back export profit for next 5 years.
• Exemption from Central Sales Tax, Exemption from Service Tax and
Exemption from State sales tax. These have now subsumed into GST and
supplies to SEZs are zero rated under IGST Act, 2017.
• Other levies as imposed by the respective State Governments
• Single window clearance for Central and State level approvals.
• This scheme has a significant impact on future exports & employment.
About 230 IT-ITeS specific SEZs have been notified by the DOC.