Sunday, December 4, 2016

Effects of denotisation on Start-UPS

As per 8th November 2016 order of Government of India the currency notes of Rs. 500 and Rs.1000 banned for legal tendering. It's a nice move by government against black money, terrorism, naxalism, etc. but the move has turned the daily routine very very difficult for small traders, new investors to start and operate their business. To start any business you need capital and to arrange capital as per government rules it is nearly impossible as any government or private financial institution ask  for many documents/guarantee/credibility. A new businessman needs so many licences to start his/her business. Too much documents needs to be arranged to open bank account, register his/her new firm and to register and obtain permission of various government departments separately makes his work very tedious and too much time taking.

The move of denotisation has made it more difficult to start new project especially on small scale. You need to arrange a long list of documents as per prescribed criterias, talk to consultant, appear before authorities, got completed many inspections and other procedures and everybody knows that nothing happens without involvement of mediators means give and take. For all these and to travel, call, document generation you need currency and till now availability of cash is a very big issue.

Suggest some ways and means for above issues.