Build in Bombay’s AMA with Anit Sheth of theBackSpace

Divraj Jain [7:01 PM] 
Thanks for doing this @anit.sheth , can you tell us a bit about what your doing at theBackspace and how you got started ?

Anit [7:02 PM] 
@divraj: thank you for the introduction.

Anit [7:03 PM]
So me and my business partner started this firm in January this year with a focus on providing Accounting, Taxation, Legal and Compliance services for startups and Small Businesses

Anit [7:03 PM]
When any company starts up in India there is significant amount of paperwork to be completed along with registrations needed.

Anit [7:04 PM]
And every startup doesn’t have the bandwidth to higher a finance and accounts team from inception

Anit [7:04 PM]7:04
So we founded this company with a mission of providing high quality services at a low cost to this sector

Anit [7:06 PM]
@divraj: thanks for taking this initiative to get the Mumbai startup community together

Divraj Jain [7:07 PM] 
@anit.sheth: The bureaucracy in India is definitely a hurdle , what do you think of SEBI’s recent move of allowing startups to raise money ?

Anit [7:09 PM] 
This was long overdue and making it easier for Startups to list means that the investors be it PE funds or VC funds can get an exit from their investment.

Anit [7:09 PM]
However the norms for Listing have just been released and there are a few norms which people are not happy about.

Anit [7:10 PM]
Having said that, this is a welcome regulation and will definitely pave way to further Investments in this sector.

Jeffery Axel [7:11 PM] 
@anit.sheth: Why do you think alot of Indian startup’s are moving base to Singapore , SE Asia ?

Anit [7:13 PM] 
@jeffaxel: the move is happening because of the sheer amounts of regulation involved in India. Moreover from the perspective of ease of business, easier funding avenues, and a favourable tax structure

Anit [7:13 PM]
Singapore is a far more attractive place to do business.

Anit [7:14 PM]
Having said that, being in India has its own sets of advantages i.e. Cheap and talented labor, huge consumer base

Anit [7:15 PM]
However what we will see is that a lot of companies might move their HQ outside india and maintain branch offices or wholly owned subsidiaries in India

Akshat Gandhi [7:17 PM] 
@anit.sheth: Hi so we have not incorporated yet and were wondering what is better option for startups in india an LLP or private equity

Anit [7:18 PM] 
@akshatg: hi. Well it totally depends on what your future vision of the company is. If you are looking into funding then you should go in for a private limited company. Otherwise from a taxation standpoint an LLP is a far better option

Anit [7:18 PM]
However, if you would like specific advice based on the exact nature of your business. Please get in touch with me on 9820236355

Anit [7:19 PM]
private limited companies have far more compliance needs throughout the year and makes it more expensive to maintain.

Anit [7:20 PM]
An LLP gives you the best of Partnership Firms and Private Limited Companies

Anit [7:20 PM]
Downside to that is no Investor would fund you in that entity.

Akshat Gandhi [7:22 PM] 
@anit.sheth: thanks for the advice will definitely get in touch with you. We are definitely looking into getting funding

Divraj Jain [7:23 PM] 
@anit.sheth: How do you usually price your services ? , I see the “startup kit” on your site

Anit [7:23 PM] 
@akshatg: best of luck with your venture. Look forward to speaking with you.

Anit [7:25 PM]
@divraj: the pricing of or services is directly correlated with the complexity of work involved. However for our startup kit we do have fixed pricing for Incorporation of a LLPs, Partnerships, Private Limited and for obtaining all the necessary approvals required for starting up.

Anit [7:25 PM]
for the startup kit: our pricing starts from approximately INR 25,000/-

Anit [7:26 PM]
We are happy to give a competitive price and provide discounted schemes for the Build in Bombay members

Anit [7:27 PM]
Does anyone have any specific questions on Accounting, Taxation ?

Jeffery Axel [7:29 PM] 
@anit.sheth: What can startup’s do to avoid high taxation rate’s , which tax haven’s would you recommend ?

Anit [7:30 PM] 
@jeffaxel: we would have to look into structuring the Startup in Singapore, Luxembourg, Isle of Mann, and other havens like this. Depending on the nature of business.

Anit [7:31 PM]
Do call me to discuss this further.

Anit [7:32 PM]
9820236355

Jeffery Axel [7:32 PM] 
Thanks @anit.sheth ill get in touch

Anit [7:32 PM] 
Thanks and sorry my email id is anit@TheBackSpace.in

Divraj Jain [7:32 PM] 
Thanks @anit.sheth for doing this , hope it was insightful and thank you guys for your questions !

Divraj Jain [7:32 PM]
@anit.sheth: The chat will be up shortly on talk.buildinbombay.com

Anit [7:33 PM] 
Thanks for having me Divraj. This is an excellent initiative taken by you. Many thanks.

Akshat Gandhi [7:35 PM] 
Thank you for stopping by @anit.sheth and for organising this @divraj