Page 98 - Quick Insights Book 2022

Chap. 27 – Startups

in employment incentive, one-time capital incentive, interest (Source: https://www.startupindia.gov.in/content/sih/en/state-startup-policies.html)
subvention, concessional land/space, rental support,
employment assistance etc. Awareness and knowledge of the 5. Mentoring/Handholding
local schemes can help chartered accountants to assist and
mentor Startups. Such incentives may help Startups in solving Financial hand holding is required at various stages of the
cash flow issue in early stage of their venture. Below are the Startup lifecycle. Chartered Accountants can serve as a
states having their own Startup policies in addition to incentives mentor for any Startup with advice and guidance on entity
allowed by the central government: selection, equity structure, costing, product pricing, corporate
law, accounting, data management, MIS, tax and legal matters.
a. Jammu & Kashmir Startup Policy 2018-2028 Similar to United States of America, Chartered Accountants are
also taking sweat equity in any Startup as a consideration for
b. Himachal Pradesh - Chief Minister’s Startup/Innovation/ their services and become a part of their growth journey. Virtual
Projects/New Industries Scheme 2016
CFO model is a perfect fit for Startups.
c. Punjab Industrial & Business Development Policy 2017-
2022 6. Funding Support

d. Rajasthan Startup Policy 2015-2020 Funding is required by Startups to create prototype, develop
product, working capital and scaling of business. Broadly three
e. Haryana Entrepreneur &Startup Policy-2017 categories of financing are opted by Startups:
f. Uttarakhand State Start-up Policy-2018 o Equity Financing

g. Gujarat Electronics & IT/ITeS Start-up Policy 2022 o Debt Financing
h. Uttar Pradesh Startup Policy 2020 o Grants

i. Madhya Pradesh Startup Policy 2022 Chartered Accountants can help in every steps of funding:
j. Bihar Startup Policy 2017-2022 o Assessment of Funding Requirement- Detailed
k. Jharkhand Startup Policy 2016-2021 analysis of funding requirement has to be prepared
which includes financial forecasting by taking into
l. Chhattisgarh Startup Policy 2019-2024 consideration various market indicators.
m. Maharashtra Startup Policy 2018-2023 o Due Diligence- Any investor being an Angel Network
or Venture Capital Fund shall require due diligence
n. Karnataka Startup Policy 2015-2020
assessment of the Startup. This is a critical process
o. Kerala Startup Policy 2017 which reflects history and nature of practices of the
company. Due diligence covers legal and financial
p. Tamil Nadu Startup& Innovation Policy 2018 – 2023 compliance where chartered accountants can help with
q. Andhra Pradesh Innovation &Startup Policy 2014-2020 their diverse knowledge and experience.
r. Aspring Puducherry - Innovations &Startup Policy 2019- o Term Sheet – Term sheet is a vital document in any
2024 structured deal. Chartered Accountants can help a
Startup in critical components of the term sheet which
s. Andhra Pradesh Innovation &Startup Policy 2014-2020 includes

t. Telangana Innovation Policy 2016  Valuation – Members of ICAI who are registered
u. Odisha Startup Policy 2016-2020 valuerscan issue valuation reports on various
methods such as Cost to Duplicate approach,
v. West Bengal Startup Policy 2016-2021 Market Multiple approach, Discounted cash flow
(DCF) analysis, and Valuation-by-Stage approach.
w. Meghalaya Startup Policy 2018-2023
(Refer separate chapter on Registered Valuer).
x. Tripura IT Startup Scheme 2019
 Investment Structure – Planning and guidance of
y. Mizoram Entrepreneurship &Startup Policy, 2019 structure is important as the funding instrument
can be equity, debt or convertibles or any such
z. Assam Startup Policy 2017-2022 combination which is best suited for the future of
aa. Manipur Startup Policy 2016-2021 any Startup.
bb. Nagaland Startup Policy 2019-2023  Share Capital Management – Drafting of exit
options through subsequent rounds of funding

Quick Insights on Professional Opportunities for Chartered Accountants 85