How the government is killing Indian Startups (shashanknd.wordpress.com) 3 points by sassyboy 15y ago ↗ HN
[–] divtxt 15y ago ↗ Here are some pain points you'll really feel if you're trying to do a micro-ISV.I) Incorporation:- No way for one individual to have limited liability. Sole Proprietorship only.- A 'Private Limited' will cost you INR 20K-40K (USD 400-800), requires at least 2 people and quarterly board meeting filings.- Private Limited minimum capital is INR 100K (USD 2K). Registration cost goes up if you invest more capital.- Bank account pain: minimum balance INR 40K (USD 800), set up can take months to be fully functional.II) Taxes:- VAT registration & monthly filing.- Service tax registration & quarterly filing.- Import Export registration if you're exporting software.- It's not clear if software is a product or service. So you'll do what everyone does - charge users both VAT & service tax!- Since amazon, rackspace etc dont charge you Indian service tax, you'll have to pay it. Add 20% to your SaaS hosting costs.- If you hire contractors, you have to withhold & submit their service tax.BTW, from what I've read here and in other forums, stuff like this is a pain in many countries.
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[ 2.9 ms ] story [ 11.5 ms ] threadI) Incorporation:
- No way for one individual to have limited liability. Sole Proprietorship only.
- A 'Private Limited' will cost you INR 20K-40K (USD 400-800), requires at least 2 people and quarterly board meeting filings.
- Private Limited minimum capital is INR 100K (USD 2K). Registration cost goes up if you invest more capital.
- Bank account pain: minimum balance INR 40K (USD 800), set up can take months to be fully functional.
II) Taxes:
- VAT registration & monthly filing.
- Service tax registration & quarterly filing.
- Import Export registration if you're exporting software.
- It's not clear if software is a product or service. So you'll do what everyone does - charge users both VAT & service tax!
- Since amazon, rackspace etc dont charge you Indian service tax, you'll have to pay it. Add 20% to your SaaS hosting costs.
- If you hire contractors, you have to withhold & submit their service tax.
BTW, from what I've read here and in other forums, stuff like this is a pain in many countries.