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.