The Finance Minister, “Mrs. Nirmala Sitharaman” while announcing the Budget 2021-22 elucidates that the Government of India is steering towards the rise in the realm of “One Person Company” (OPC) and announced a magnificent and boosting plan by proposing some of the agenda items in the recent session held in the regime of Budget 2021-2022.
Some of the major benefits to be enjoyed by OPC’s are as follows:
1. Permission granted to non-residents to incorporate OPC in India (earlier only an Indian citizen can incorporate an OPC).
2. Minimum residential requirement for fulfilling the criteria of Indian citizen to incorporate an OPC is reduced from 182 days to 120 days.
3. Allowing OPC’s to grow without restriction on paid up capital and turnover; and
4. Allowance for conversion into any type of company at any time (earlier an OPC cannot convert itself into a Private Limited Company for a period of two years from the date of incorporation).
All the above significant steps are taken with the view of the growth, promotion and development of startups, in the country.