Statement | ADIF welcomes Finance Minister’s assurance to address the issues forcing founders to register abroad

ADIF lauds the Finance Minister’s intent and the initiative to understand and resolve the issues forcing tech companies to register abroad.  

Indian founders having to register overseas has been among the major bottlenecks facing our startup ecosystem. The phenomenon results in the equivalent of a brain drain wherein we, as an ecosystem, lose out on talent, IP as well as tax revenue.

The issue gets compounded when Indian investors systematically lose out on the opportunity to put their funds in such entities owing to limitations on investing in overseas unlisted companies as prescribed by RBI guidelines and the LRS scheme.

The core issue is linked to the ease of doing business in India. It is commendable that the Minister has chosen to address this problem and not demonise the founders who have been forced to make the decision to register abroad keeping in mind the best interest of their businesses.

We hope the discussions that ensure will result in actions that bring our ecosystem on par with the best in the world in terms of business environment and ease of doing business.