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 paperwork. 

“These companies will not have to prepare cash-flow statements. They, however, have to