#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

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