Saturday 18 November 2017 ,
Latest News
  • BNP leader Mintoo, family on Paradise Papers
  • Grand rally to celebrate March 7 speech recognition today
  • 3 students jailed, one fined at BSMRSTU for adopting unfair means
  • 12 Bangladeshi nationals rescued at Benapole
  • Zimbabweans to march as Mugabe's future in the balance
7 October, 2017 12:33:03 AM / LAST MODIFIED: 7 October, 2017 04:18:04 PM

Print

IT experts for stamp duty cut

venture capital funding for start-ups
Sharif Ahmed
IT experts for stamp duty cut

Venture capital is money invested in a risky business and can become the pivotal source of funding for start-ups and their potential growth, if the government and regulators ease some rules and waive stamp duty, say IT experts. Stamp duty is a tax that the buyer of a property or land costing above a certain sum has to pay.

The chairman of bdjobs, Fahim Mashroor, told The Independent that if the government waives 2 per cent of stamp duty to encourage venture financing, it would be considered a big amount to finance a start-up and its subsequent growth.

When asked about challenges, Fahim Mashroor said: “Banks don’t finance start-ups anywhere in the world.

All the prominent and successful start-ups have raised funds themselves as well as through corporate firms.”

The amount needed to launch a start-up entirely depends on a firm’s dimension and condition, Mashroor told The Independent.

“When I started ajkerdeal, a Japanese firm financed us to start the business worth Tk 10 crore,” he said. Asked about the difficulties of launching a start-up, Fahim said: “Start-ups generally start with a tiny firm and eventually grows as the funding increases. It's indeed a long-term investment, which takes about seven to eight years. The income tax policy is not at all helpful to begin a start-up.”

Banks want collateral security, which is another hindrance, he noted.

According to e-Cab (e-commerce association of Bangladesh), Tk 1,000 crore worth of transactions are to be expected  in the e-commerce sector near future. So, venture capital investment is essential at this moment for the country’s e-commerce sector.

Talking about a 2 per cent waiver of stamp duty, e-CAB president Razib Ahmed said: “If the money raised by venture capital firms is Tk. 1,000 crore, they will have to pay 2 per cent of that, which amounts to Tk. 20 crore, to the government as stamp duty.”

He also said that Tk. 20 crore is a big amount that can be easily invested in 20 different IT start-ups.

“The proper valuation of a website is required to boost the e-commerce sector. The hindrance to financing an e-commerce site is the website valuation. With a proper valuation, we can get e-commerce funding from the government,” he said.

“Proper laws and institutions are needed for venture capital fund management.

A proper channel must be established to get venture capital funds,” he added.

He further said that foreign capital companies should come forward to build partnerships with local start-ups to ensure sustainable future growth.

According to a report called ‘Venture Capital: The Game Changer’, written by Shameem Ahsan, local companies like Priyo.com, BAGDOOM.com, Shohoz.com, Chaldal.com, Ajkerdeal.com, Chalo etc. can secure funding from international venture capital firms.

Silicon Valley-based Fenox Venture Capital has made some investments and plans to continue investing in Bangladesh.

 

Comments

Poll
Today's Question »
BNP leader Moudud Ahmed has urged the prime minister to restore the provision for caretaker government for the next polls. Do you support his call?
 Yes
 No
 No Comment
Yes 82.1%
No 12.8%
No Comment 5.1%
Video
More Business Stories
Chinese firms urged to invest more in EPZs Maj Gen Mohd Habibur Rahman Khan, ndc, psc, executive chairman of the Bangladesh Export Processing Zones Authority (BEPZA), has requested Chinese entrepreneurs to invest more in the EPZs of Bangladesh. He made this appeal during a…

Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting