The Indian government is planning to execute some policies for the betterment and ease of the domicile shifting to India. Several Indian startups shifted their domicile outside India for several benefits. The studies show many want to come back. However, the process is very difficult. The sources mention 20 unicorns to make a comeback. The government under this scheme will provide a special economic zone to these companies to set up their headquarters providing them with several tax benefits. Let’s know more about it below.
Indian Government May Launch A New Scheme For The Indian Startups To Comeback
The Indian government can launch a new scheme for the Indian startups having domicile in other countries. The scheme’s name will be Ghar Wapsi Yojana. Under this scheme, the government will offer the Indian startups to set up their headquarters in the GIFT city. It is a project by the government of India to bring Indian startups with foreign domicile back to India. The GIFT City will be an area in Ahmedabad, Gujarat. The unit is under construction at the moment.
Indian Government will take several initiatives to bring them back to the country. Under this, the startups will benefit from the taxation. The scheme will benefit the companies with the minimum amount of neutral taxes. The companies will not only get access to the tax benefits but they will also be able to register themselves at NSE and BSE. It will benefit the country’s share market, especially the tech sector. Big companies like Meesho, Razorpay, and Zepto started in India and shifted to the US or another foreign country.
The companies will also be able to enter the market of Mutual Funds and retail investment. It will be beneficial for both. However, there will be some eligibility criteria for the companies to shift back to India under the Ghar Wapsi scheme. The company’s founder should be Indian. They should have a good amount of shares derived from India. The company should be unlisted in the market. The companies mostly shift in their initial phases.
If the businesses get the benefit of going tax-neutral, they will come back for sure. PhonePe’s CEO shares about the difficulty they had to face to come back to India from Singapore. Thus, the company will be able to easily with the challenges to shift with the government support. PM Modi is preferring the comeback to grow the Indian economy further.