

How the government is killing Indian Startups - sassyboy
http://shashanknd.wordpress.com/2011/04/11/how-the-government-is-killing-indian-startups/

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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.

