Chennai: Covid-19 has made several business entities and start-up enterprises shift from their original business plan. The uncertainty of time frame for returning to normalcy has compelled them to practice living with the new normal.
Consortium of Indian Associations (CIA) has appealed to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to redefine the reference for ease of business norms.
In a statement, CIA convenor K E Raghunathan, said, “till now, entrepreneurs are first assumed to be law evaders, crooks and cheats and all rules and schemes are formed to prevent misuse of the system and very seldom punishment is done to those who violate. Unfortunately, most of the time we have seen that the those who cheat escape and those who abide by the rules get into miserableness. Hereafter, the new assumption will be – entrepreneurs are considered as genuine and honest and rules will be made based on trust and self declarations and easy to follow and comply with. Trust breakers will be punished severely with easy identification of violation and the system will be redesigned to deduct such evaders.”
He said there should be zero cost for new company registration up to Rs five crore of authorised share capital. “Applications shall be made digitally and simple to fill up without a need for a company secretary or consultant with a help desk. A new company must be formed within three working days along with MSME Registration, Udyog Aadhar, PF, ESI, GST, IT, Labour Act registrations etc in one go.”
According to Raghunathan, term loans must be given for a start-up enterprise at five per cent interest rate with three years moratorium and further five years of repayment time frame. It will give them time to perform and repay, Invest and prosper attitude.
“All land availability, subsidy, electricity connections, pollution control clearance, drainage and water connections, road connectivity will be done within 30 days by auto process without any inspections and interactions. All fees payable to government for such requirement shall be given at free of cost,” he added.
Raghunathan further said, “Currently, State governments collect property tax, water tax, electricity charges, professional tax, registration costs, licenses under labour safety norms etc on fixed cost basis, Central government collects GST on turn over and income tax on profits. It is suggested that revenue from a business entity by State or Centre must be based on the profit sharing with the organisation and government should act as a partner in progress than just a revenue collector. Wrong-doers must be punished heavily.”