Gov introduces UE Number for faster wind-ups and flexible rules to boost start-ups

Indian PM Narendra Modi sees start-ups as future growth engine and his recent trip to Silicon Valley (USA) was much in line with making India as a start-up paradise. The government understands that start-up are a risky game – not every start-up becomes a success and they find it difficult to wind up smoothly. The entrepreneurs who take risks to bring a disruptive technology or an easy service, sometimes fail without reaching their full potential due to several reasons like lack of necessary assistance and investment. So, there is a need of a policy that not only provides a smooth entry but also an easy exit. According to Ministry of Skill Development and Entrepreneurship (MSDE), the government has made a blueprint of a new policy which will provide assistance in both cases.

Unique Entrepreneurship Number

Indian government has decided to provide a UEN that can be utilized in completing various complex regulatory processes along with reporting compliance with tax and labour laws. The government is also working with all the related ministries to provide a single window system for faster approval. According to government sources, the government is working on creating a single application for obtaining all statutory nods in one place.

Jyotsna Sitling, joint secretary in the MSDE announced that there are a number of background work has to be done before these policy can be made available. The government is working on a number of issues which will eventually boost up the start-up ecosystem in India, she further added.

Announcements: 

• The start-ups can windup their business easily if it doesn’t take off in first three years. The government wants to have a rescue culture – necessary changes will be made in bankruptcy rules.
• Government of India is also planning to provide incentives to angel funding and venture capital funding by bringing them into quasi-public sector.
• A National Entrepreneurship Hub will be setup that would integrate the entrepreneurship initiatives of different ministries and private partners.
• A major thrust will be given to entrepreneurship education for which the government will rely on online and experiential learning. The course will be started in 3000 colleges located around 325 industrial clusters.
• A web and mobile based platform will be created to connect students with national incubators, mentors and entrepreneurs while helping them to get benefitted under other schemes such as Atal Innovation Scheme.