A team of entrepreneurs which include founders of companies like Cognizant’s Lakshmi Narayanan and Arun Jain of Polaris are in talks with the Tamil Nadu state authorities to conceive a plan that will help startups reduce registration time. This initiative is in alignment with the Centre’s plan to help startups speed their registration and other processes enabling them to go-to-market sooner.
The objective of this movement is to strip down the process of setting up a company to its bare essentials so that obstacles that bog down startups are eliminated.
Lakshmi Narayan said,”It takes more than a month to get your company a name. The startups get stuck, wasting time for product development in procedure.” According to him, it takes about 2 years for some procedures like incorporation of a company, which then impacts the launch of the startup.
The Tamil Nadu authorities will initially focus on cutting this time period for startup registration, since this is the foundation for all business operations such as tie-ups and funding.
“At the outset, the idea is welcome. Even Karnataka is planning a startup policy. At the national level, the centre is considering this to plug flight of startups. So, it is time for Tamil Nadu too. A liberal startup policy is already enshrined in the state’s IT/ITES policy and any additional lines of action to that are welcome,” said a top government official aware of the developments.
Whilst industry captains conduct technology carnivals like CIIs Startupreneurs, a policy relaxation of rules and regulations to boost and speed up the launch of startups is essential. Currently the CII’s emerging businesses panel is in talks and discussing the fine print with Tamil Nadu’s industries department bureaucrats. The time frame for execution has been left open for now.