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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 ...

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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

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

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