Travel pass: Pros may outweigh cons
IATA’s mobile application will allow travellers to store and manage certifications for Covid-19 tests or ...
The FM has also incentivised start-ups by extending eligibility to claim tax holiday by one year - March 31, 2022 - Getty Images/iStockphoto
The Budget has proposed to incentivise the incorporation of One Person Companies (OPCs) which is expected to boost the start-up and innovation ecosystem. The move aims to provide total control, lesser compliance burden coupled with limited liability to the company founder. It is also expected to nurture entrepreneurship in Tier 2,3,4 and 5 cities.
“I propose to revise the definition under Companies Act, 2013 for Small Companies by increasing their thresholds for paid up capital from ‘not exceeding ₹50 lakh’ to ‘not exceeding ₹2 crore’ and turnover from ‘not exceeding ₹2 crore’ to ‘not exceeding ₹20 crore. This will benefit more than 2 lakh companies in easing their compliance burden,” said Sitharaman.
Additionally, the residency limit for an Indian citizen to set up an OPC was reduced from 182 days to 120 days and Non-Resident Indians (NRIs) are now allowed to incorporate 1-person companies in India. The FM has also incentivised start-ups by extending eligibility to claim tax holiday by one year - 31st March, 2022.
Pointing out that OPCs require one person as a subscriber to form a company and such a company is treated as a private company under the Companies Act, Moin Ladha, Partner Khaitan & Co, said: “The primary advantages of OPC include complete control, lesser compliance burden coupled with limited liability for the founder. It allows OPCs to grow without any restrictions on paid-up capital and turnover, allowing their conversion into any other type of company such as a private limited company which requires a minimum of two people and a two-person board of directors.”
He said, “Allowing NRIs to invest through this route can encourage start-ups and smaller businesses to set up without the concerns of a larger compliance framework or minimum capital commitment,” he said.
OPCs will give a boost to new start-ups getting launched which will emerge from Tier 2,3,4 and 5 towns, said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures. He said, “The focus of the Companies Act was on preventing fraud and not about inculcating entrepreneurship. OPC is definitely a step in the right direction for entrepreneurship and will not only de-risk an individual from his business but also give him/her credibility in raising seed/angel money in the future.”
A simplified regime for OPC will encourage start-ups and entrepreneurs to do business under a corporate structure in an organised manner that can help them to scale and grow, said Suraj Malik, Partner-Transaction Tax, BDO India. Serial entrepreneur and partner of GrowthStory, K Ganesh, said that OPCs ensure ease of doing business, allowing founders to focus their efforts on the business rather than on government red tape.
IATA’s mobile application will allow travellers to store and manage certifications for Covid-19 tests or ...
A 2010 Act to regulate the medical sector flounders in implementation, even as healthcare remains ...
The scheme to boost local medtech manufacturing is timely, especially given the raging pandemic. But ...
Do pilots sleep on their job?
Fiscal stimulus, friendly monetary policy and firm commodity prices point towards normalcy, says the MD and ...
Price correction is a good opportunity for long-term investors to take the plunge
Q4 earnings, along with progress in controlling Covid-19 spread, will be in focus
Do keep in mind that premium may go up in case one of the members has a pre-existing condition
Inside Narayan Chandra Sinha’s universe house, metal and nature’s footprints are churned into an organic whole
A former resident relives sepia-tinted memories of growing up in a hilly, colonial tea range of the Western ...
It starts with the lack of new email messages: A sudden silence from my personal world. It’s a mellow Saturday ...
Love for food sparks an unusual friendship between a visitor and an auto driver in Hyderabad’s colourful lanes
Monotype’s 2021 type trends report points to a return to hand and the familiar
As ‘ear-points’ between a company and a customer grow, we are witnessing a rise in audio assets
‘Desi Twitter challenger’ Koo on connecting like-minded folks
Coca-Cola has just introduced an oat milk line in the US under its Simply brand. Smart move, say industry ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor