While presenting the first-ever paperless Budget 2021, Finance Minister Nirmala Sitharaman said the government proposes to incentivise incorporation of one-person companies (OPCs), a move that will benefit startups and innovators.
FM said that innovators can now form one-person companies without restrictions, paid-up capital or turnover norms.
She also announced that the encouragement of increasing the number of entrepreneurs in India by reducing the residency limit for any Indian to 120 days.
Finance Minister proposed revising the definition of small companies by raising the capital base to Rs 2 crore from the current limit of Rs 50 lakh.
The Budget 2021 also focussed on decriminalisation of limited liability partnerships, with the flexibility to convert a company to any form or LLP to benefit more than two lakh companies in easing the compliance requirement.
FM Sitharaman announced the launch of data analytics, AI, ML-driven MCA 3.0 version and an ecourt system to be implemented as a special framework for MSMEs.