The Centre is making ready a blockchain-based validation mechanism for startups that may reduce the compliance encumbrance and expedite processes.
The Division for Promotion of Trade and Inside Commerce (DPIIT) has begun engaged on a framework that may facilitate many companies such because the Central Board of Direct Taxes (CBDT) and Public Sector Undertakings (PSUs) amongst others to entry, validate or approve paperwork and information obtainable to all stakeholders on the chain.
The system will assist curtail the necessity for separate submissions by startups to authorities, regulators, intermediaries since particular person verified paperwork shall be accessible on blockchain.
“The platform could be utilised by authorities departments, PSUs, banks and traders to confirm the authenticity of the data submitted by startups, for availing help alternatives and allow fast turnaround within the inter-departmental verification course of,” an official advised the Financial Occasions.
The platform would be the preliminary transfer in direction of introducing budding applied sciences inside current authorities mechanisms to revamp conventional processes, the official added.
The plan is to convey all companies, establishments, and stakeholder departments collectively to create a decentralised repository of significant startup data for swift information sharing, reduce the compliance burden and quicken decision-making.
The popularity certificates are issued by the DPIIT via the Startup India platform. Every is distributed a novel quantity that can be utilized to substantiate authenticity. The division can confirm the startup certificates on the blockchain to make it foolproof.
As of July 14, a complete of 52,391 companies had been acknowledged as startups by the DPIIT. India presently has 53 unicorns, with a tentative valuation of Rs 1.4 lakh crore, the Centre just lately advised Parliament.