Economic research highlights the need for an easier compliance landscape for startups and the need to have policies and structures to motivate Indian startups to return to their roots. Aiming to retain the intellectual property (IP) of domestic innovators and claim to relocate to India, the economic study set out a series of measures and called for “collective action by government-related regulators” . Agencies and Other Stakeholders”.
New-age companies and start-ups, especially tech companies, typically headquartered in favorable locations abroad. legal Close to the environment, tax system, and customers. This is technically called ‘flipping’ and involves the transfer of all ownership of an Indian company to a foreign entity, with the transfer of all IP and all data. The study calls for the need to put an end to the “flip” and also presents some measures that can help Indian founders to “counter-flip” their entities to India.
Some of the measures proposed include: ministerial meeting (IMB) accreditation helps start-ups with verification and recognition and helps grant tax incentives. Acquiring this is currently a tedious process with a huge amount of time and money. Simplifying the taxation of employee stock options (ESOP) is also a topic that has been a major deterrent for founders deciding where to locate their operations in India.
The study also stressed the need to simplify “multiple layers of tax and uncertainty due to tax litigation” and emphasized simplifying procedures for capital flows, drawing on the examples of the United States and Singapore against inflows. It cites it as a country with fewer restrictions and simpler corporate law. and capital outflow. It also calls for measures to encourage entrepreneurial action, inter alia in cooperation with incubators and other institutions.
“The flipping phenomenon reflects startups venturing into a dynamic and uncertain geopolitical world for short-term gains. could be reversed,” the study read.
The call for “reverse flipping” of the survey PhonePe recently revealed that it has spent around Rs 80 crore to return ownership to India. More startups are also said to be considering reverse flips to ensure value creation in India, but the cost and complexity of the procedures involved are a hindrance.
New-age companies and start-ups, especially tech companies, typically headquartered in favorable locations abroad. legal Close to the environment, tax system, and customers. This is technically called ‘flipping’ and involves the transfer of all ownership of an Indian company to a foreign entity, with the transfer of all IP and all data. The study calls for the need to put an end to the “flip” and also presents some measures that can help Indian founders to “counter-flip” their entities to India.
Some of the measures proposed include: ministerial meeting (IMB) accreditation helps start-ups with verification and recognition and helps grant tax incentives. Acquiring this is currently a tedious process with a huge amount of time and money. Simplifying the taxation of employee stock options (ESOP) is also a topic that has been a major deterrent for founders deciding where to locate their operations in India.
The study also stressed the need to simplify “multiple layers of tax and uncertainty due to tax litigation” and emphasized simplifying procedures for capital flows, drawing on the examples of the United States and Singapore against inflows. It cites it as a country with fewer restrictions and simpler corporate law. and capital outflow. It also calls for measures to encourage entrepreneurial action, inter alia in cooperation with incubators and other institutions.
“The flipping phenomenon reflects startups venturing into a dynamic and uncertain geopolitical world for short-term gains. could be reversed,” the study read.
The call for “reverse flipping” of the survey PhonePe recently revealed that it has spent around Rs 80 crore to return ownership to India. More startups are also said to be considering reverse flips to ensure value creation in India, but the cost and complexity of the procedures involved are a hindrance.
