Corporate Taxation: Issues and Challenges in Start-up Industry

Start-ups can be called the ‘latest fashion’ of the commercial industry since the past few years in India. Corporate taxation poses significant challenges and issues for Start-ups in the industry. The intricate nature of tax laws and regulations, coupled with compliance requirements and ambiguities, pose significant obstacles for start-ups. Additionally, start-ups encounter challenges related to tax structuring, funding, employee stock options, and intellectual property rights. These hurdles directly affect their capacity to attract investors and foster business growth. This paper aims to delve into the challenges and issues concerning corporate taxation within the start-up industry. It seeks to propose measures to cultivate a favourable tax environment for start-ups in India. Furthermore, the paper analyses recent policy changes pertaining to corporate taxation and their implications on start-ups.