Finance Minister Nirmala Sitharaman while announcing her budget 2021, the first post covid budget of the Modi government upheld the need to rationalize the structural framework of the Ministry of Corporate Affairs the develop the ease of business by upholding and promoting comfort for businesses with new era version of MCA 21 3.0 so support trending ns much-needed services of e-scrutiny, e-consultation, and e-adjudication which needless to mention shall need a great IT Infrastructure.
To further strengthen the ease of doing businesses and promoting corporate culture for startups it has been announced that there shall be Discrimination of the civil offenses in Companies Act, 2013 and the Rules made thereunder.
Going further in order to make it comfortable for businesses to undertake a lesser number of compliances and that too with ease and threshold limit in the definition of small companies in the Companies Act 2013 has been altered; the paid-up capital limit has been increased from 50 lakh to 2 crores and turnover limit has been increased from 2 crores to 20 crores.
In its supportive approach towards startups and small businesses, One Person Companies have been allowed to grow without any restrictions which means that now there stands no compulsion to upgrade the structure if the OPC increases its capital or turnover is increased over the course of time furthermore in view to attract foreign trade to India NRI’s are now allowed forming One Person Companies too, with the residency requirements in India being reduced to 120 days.
Going ahead in the journey it is expected that the corporate law framework in India shall be much more comfortable for small and midsized businesses in the times to come.
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