Ease of Doing Business for MSMEs: The challenge with startups and MSMEs is the lack of general awareness of the regulatory landscape. Also, compliances are generally not considered as a part of core business processes.
Ease of Doing Business for MSMEs: Over the last more than 30 years working with startups and MSMEs, I can safely say that more than 40 per cent of startups fail within the first four years. The contributing factors may be quite a few. The major ones, however, are cash flow issues and lack of structuring. Structuring may be in terms of an entity, related parties, or transactions (global + cross border). Managing tax and legal compliances are particularly important since these have a direct financial bearing on businesses. In these days of the new normal, with the ever-changing laws, this has assumed further importance. Startups and MSMEs need a professional tax and legal advisor in their team to ensure:
Effective planning of tax and legal compliances
The challenge with startups and MSMEs is the lack of general awareness of the regulatory landscape. Also, compliances are generally not considered as a part of core business processes.
Source: Financial Express
