Author : Samir Jain | EQMint | Startup news
A Bengaluru based entrepreneur’s decision to leave India has sparked a wider conversation about the country’s taxation and compliance environment and the pressures it places on businesses, even those that follow the rules. Rohit Shroff, the founder of the Aflog Group, has openly shared his frustration with India’s regulatory framework, calling it “flawed” and announcing plans to relocate abroad in 2026.
Shroff’s remarks do not come from the perspective of a startup struggling to survive or a company attempting to bypass regulations. Instead, his concerns stem from years of operating within the legal system and still feeling weighed down by what he describes as excessive compliance demands, frequent reporting requirements, and a tax structure that leaves little room for ease or predictability.
According to him, the cumulative burden has made running a business more stressful than it needs to be.
India has long promoted itself as an attractive destination for entrepreneurship and investment, particularly with initiatives aimed at improving the ease of doing business. While these efforts have led to some progress, many entrepreneurs argue that the reality on the ground remains far more complicated. Shroff’s experience reflects a sentiment shared quietly by several business owners who say that complying with regulations often consumes a disproportionate amount of time, energy, and financial resources.
Understanding the Tax Landscape
Taxation is one of the central issues Shroff has highlighted. India’s tax system involves multiple layers, including direct and indirect taxes, along with detailed documentation and strict timelines. Even minor errors or delays can lead to penalties, notices, or prolonged correspondence with authorities. For smaller and mid-sized businesses, this can mean diverting focus away from growth, innovation, and job creation toward administrative survival.
Beyond taxes, compliance requirements across labour laws, corporate filings, and sector-specific regulations add to the complexity. Entrepreneurs are required to stay updated on frequent rule changes and interpretations, which can vary across jurisdictions. Shroff has argued that this lack of consistency creates uncertainty, making long-term planning difficult. For business leaders, unpredictability can be as damaging as high costs.
Shroff’s announcement that he intends to leave India in 2026 has drawn attention because it highlights a broader issue: the potential loss of experienced entrepreneurs who have already invested time and capital into building companies domestically. While India continues to produce new startups at a rapid pace, the departure of established founders raises questions about sustainability and retention within the ecosystem.
It is important to note that Shroff has not framed his decision as an emotional reaction or a rejection of the country itself. Instead, he has positioned it as a practical business choice. According to his view, operating in an environment with simpler rules, clearer enforcement, and fewer compliance hurdles would allow him to focus on scaling his business rather than navigating regulatory obstacles.
His comments have resonated with many professionals, particularly founders who feel that honest compliance is often met with suspicion rather than support. Several business owners argue that the current framework tends to treat all entities as potential violators, leading to increased scrutiny and procedural rigidity. This approach, they say, discourages risk-taking and innovation.
At the same time, experts acknowledge that India’s regulatory system is designed to prevent misuse, ensure accountability, and protect stakeholders. However, the challenge lies in striking a balance between oversight and ease. When compliance becomes overly complex, it can unintentionally penalize those who are attempting to operate transparently.
Shroff’s criticism does not suggest that reform is impossible. Instead, it highlights the need for continued simplification, clearer communication from authorities, and greater trust between regulators and businesses. Many entrepreneurs believe that a more collaborative approach could significantly improve outcomes without compromising governance.
As India aims to position itself as a global economic powerhouse, stories like Shroff’s serve as a reminder that growth is not driven by ambition alone. Retaining talent, encouraging long-term investment, and creating a business-friendly environment are equally important. Whether policymakers choose to address these concerns remains to be seen.
For now, Rohit Shroff’s planned exit stands as a personal decision shaped by professional realities. His story adds a human face to an ongoing debate about what it truly means to make doing business easier and whether India can evolve fast enough to keep its entrepreneurs from looking elsewhere.
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