#2 Union Budget 2021 impact on Corporate Sector

OPCs, LLPs, Start-Ups, MSMEs, and NCLTs to look for

By K&T Forlex Team

India's Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman on February 1, 2021, proposed reforms for small companies and MSMEs to strengthen the Startup ecosystem, while presenting Union Budget 2021-22 in Parliament.

OPC (One Person Company):

Through the present budget, Government of India has now eyeing to boost Start Up ecosystem by removing few restrictions such as:

a) Encouragement to NRIs, by allowing them to incorporate OPCs;

b) Reducing residency criteria/limit from 182 days to 120 days;

c) No restrictions over paid up capital and turnover;

d) easy conversion from OPC to any other form of legal entity at anytime.


Definition of Small Companies:

a) Increase in threshold for paid up capital from "not exceeding Rs. 50 lakh" to "not exceeding Rs. 2 Crore";

b) Increase in threshold for turnover from "not exceeding Rs. 2 Crore" to "not exceeding Rs. 20 Crore";

This will ease company compliances for over 2 lakh companies.


LLPs (Limited Liability Partnerships):

Decriminalization of LLP Act, 2008 thereby removing various offences and moderating the penalty regime to boost of ease doing business.


NCLTs (National Company Law Tribunal):

e-Courts system shall be implemented and alternate methods of debt resolution and special framework for MSMEs shall be introduced.


By,

Team K&T Forlex 

Mumbai | Pune | New Delhi | Singapore | Shanghai


#MSMEs #StartUps #NCLTs #LLPs #UnionBudget #Budget2021 #ktforlex #law #legal #Corporate #CorporateAmendment #OPC #NRIs

K&T Forlex Pvt Ltd is an international business and corporate consultation firm operating from 5 cities across the globe. You may reach us at www.ktforlex.com or email us on info@ktforlex.com.

Comments

  1. Vignesh17 June 2022 at 01:24

    A due diligence company reputation is the sum total of its performance and the quality of its products and services.

    ReplyDelete
  2. What is CTE (Consent to Establish)?4 March 2025 at 00:24

    Very good information Go to for professional help on pci certificates Must Read it.

    ReplyDelete

Post a Comment

Popular posts from this blog

Case Analysis; Piyush Subhashbhai Ranipa Versus The State of Maharashtra

  [I] General Introduction- 1. Concept of Anticipatory Bail Anticipatory Bail is a legal relief and direction to release an arrested person on bail. If a person believes that he may be arrested for a non-bailable offence; one may apply for AnticipatoryBailonly before High Court or Sessions Court. Anticipatory Bail or pre-arrest bail is issued before the arrest. While granting Anticipatory Bail, the court may impose certain conditions in the interest of justice. 2. Provision for Anticipatory Bail Section 438 of the Criminal procedure code (Cr. P.C), empowers the High Court and Sessions CourtAnticipatory Bail. Stating direction for grant of bail to person apprehending arrest. (1) When any person has reason to believe that he may be arrested on an accusation of having committed a non-bailable offence, he may apply to the High Court or the Court of Session for a direction under this section; and that Court may if it thinks fit, direct that in the event of such arrest, ...
Read more

Case Analysis: Internet and Mobile Association of India Vs. Reserve Bank of India

Lets Trade Crypto: Indian Supreme court quashes prohibition This article reflects the decision of the Supreme court that set aside the RBI circular dated 06.04.2018 which prohibited the banks and entities regulated by it to deal in Virtual currencies or to provide banking services facilitating any person or entity dealing with or settling VCs. General introduction to virtual currencies: Virtual currency is a type of unregulated digital currency which is not issued or controlled by a central bank. Virtual currencies are ordinarily issued by private issuers and used among specific virtual communities. The security of the software and networks that virtual currencies stand on is a critical concern. The traditional regulated currencies are backed by fiat currency or hard assets such as gold. In contrast, virtual currencies are not backed with any intrinsic value. The value of a virtual currency is highly volatile. Therefore, it is a less favorable tool to be used as a medium...
Read more